Barn bridge is a decentralized financial platform (DeFi) that aims to tokenize risk by aggregating the risk level across the DeFi ecosystem through financial instruments. The project aims to provide DeFi with greater flexibility and risk control so that, by purchasing tokens representing the investment, users can choose the level of risk appropriate to their investment strategies and participate in various DeFi products.
By tokenizing risk, BarnBridge can increase volatility for traders or reduce volatility for more conservative investors, long-term owners, and risk averse institutions. BarnBridge seeks to provide an opportunity for what is known as a “risk-free” product offering in the DeFi world to attract risk-averse investors into the crypto space. While BarnBridge is still in its infancy, the project has enormous potential to impact the DeFi industry by bringing flexibility and efficiency to risk management – breaking down the barriers of risk and volatility while attracting more participants from traditional finance ( TradFi) branch.
When users buy SMART Yield bonds, they buy a cryptographic tranche that represents their chosen risk and return from a pool of credit provided on various DeFi credit protocols. SMART Yield Bonds are designed to minimize interest rate volatility through debt-based derivatives.
Here is an example of a SMART Yield bond: Some investors offer a credit pool with 1000 DAI. This pool will lend DAI via the compound protocol and offer two tranches – the senior tranche with a 5% fixed interest rate and the junior tranche with a variable interest rate. This pool has a risk split of 70/30 and is balanced to allocate 70% to the senior tranche and 30% to the junior tranche. When investors provide a pool of credit, they select the risk tranche they want. When a tranche is over-collateralized, the other party has greater chances of making money.
These SMART Yield bonds enable investors to buy tokenized risks with market-driven risk tranches. In this example, investors can choose either a low potential return and low risk or a higher potential return and higher risk. With the use of smart contracts, exact profits and losses – no matter how complex – can be algorithmically reliably calculated and executed. This allows an investor to choose his level of risk without being influenced by the overall risk curve. For example, they can get involved in ETH and choose whether they want to be exposed to high, medium or low risk and return.
Such finely tuned risk flexibility could prove very attractive to TradeFi investors looking to get started with DeFi, with smart contracts implementing a higher degree of customization while reducing the role of middlemen, trust and overhead.
BORN is an ERC20 token, so you have plenty of wallet options to hold this token. You can choose from the following wallets:
Buy directly on the exchange.
BORN is currently traded on many different exchanges with a total daily trading volume of around USD 18 million. The exchanges that list this token include: Uniswap, Coinbase, Gemini, Gate.io, Sushiswap, Kucoin, 1inch, etc.
Barn bridge is a platform that enables users to control the risk of using DeFi platforms such as Compound or Aave. The BOND token is to be listed on the Binance exchange, in the short term the price of this token will show a certain growth. Through this article, you must have some understanding of the basic information about the project in order to make your own investment decisions. CoinCu is not responsible for your investment decisions. I wish you every success and a lot of profit from this potential market.
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