General
1. What is B.Protocol?
B.Protocol is a multi-chain user-based backstop liquidity protocol. It aims to make lending platforms more capital efficient and stable by handling liquidations in scale, using its Backstop Automated Market Maker (B.AMM) novel design.
B.Protocol is currently live over:
- Liquity Protocol (Ethereum mainnet)
- Hundred Finance (Arbitrum, Fantom, Polygon)
- Vesta Finance (Arbitrum)
- Fuse (Ethereum mainnet, Arbitrum - coming soon)
With B.Protocol, users (aka Backstoppers) can deposit funds into backstop pools that will be used for the liquidation process, providing liquidation profits to the backstoppers.
While users' deposited funds are sitting idle in the backstop pool they are deposited as supply liquidity on the lending market to gain interest rates and/or liquidity mining rewards. When liquidation is needed, the funds are used to execute the trade with 5-10% profit. Finally, a novel on-chain algorithm is used to rebalance the liquidation proceeds back to the originally deposited currency, using a price feed to avoid price impact and potential cascading liquidation events.
B.Protocol V1 incentivizes professional traders to act as keepers in MakerDAO and Compound, by letting MakerDAO and Compound users give liquidation priority to these keepers, in return for sharing the proceeds of the liquidations. This way the miners' extracted profits (MEV) go back to the users of the platform, and the platform enjoys more committed liquidators. B.Protocol v1 is still supported but is no longer the main focus of the community and the development team.
2. Who should use B.Protocol?
Lending platforms as well as synthetic assets, derivatives, and stable coin platforms
Tap into B.Protocol's user-based backstop and let the community pool funds towards a more efficient, transparent, and decentralized liquidations system if you want to -
- Help your users to avoid liquidations while allowing higher capital efficiency and security.
- A decentralized and transparent liquidation ecosystem instead of dealing with, maintaining, and/or paying bot operators to secure your protocol.
- Support low liquidity, long-tail assets across multiple chains and L2s.
Ask your lending market operators today if they have already integrated B.Protocol's backstop...!
Low-Risk Yield Strategy Seekers
If you are seeking a low-risk yield strategy that will provide returns on your stable coins in an automated and passive manner - consider one of B.Protocol's backstop pools. You can choose your favorite stables across different chains and L2s B.Protocol supports.
Part of a DAO? Open a Fuse pool to let your community borrow against your native token
B.Protocol is integrated with Fuse (Rari Capital/ Fei/ Tribe) and offers its backstop to any new or existing pool on any EVM compatible chain. The B.Protocol DAO will join as co-admins to the manage the risk factors of the pool with your DAO, and will ensure liquidations are handled as intended with a user-based backstop integration.
Last modified 2mo ago