HomeTradingCoin BureauBarnBridge (BOND): One CRAZY Defi Protocol!! 🤯

BarnBridge (BOND): One CRAZY Defi Protocol!! 🤯

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0:00 Intro
2:25 What is BarnBridge?
5:09 CLOs
7:42 Tokenized Tranches
9:24 Smart Yield
12:15 Smart Alpha
14:06 BarnBridge DAO & BOND
16:39 Liquidity Incentives
19:02 Yield Farming Risks
21:25 Conclusion


⛓️ 🔗 Useful Links 🔗 ⛓️

► BarnBridge Website: https://barnbridge.com/
► BarnBridge Docs: https://github.com/BarnBridge/
► BarnBridge Medium: https://medium.com/barnbridge
► How CLOs Work: https://www.pinebridge.com/en/investor-types/default/insights/clos-how-they-work
► Recession & CLOs: https://economics.rabobank.com/publications/2019/july/recession-and-clos/
► Impermenant Loss: https://tokentuesdays.substack.com/p/eliminating-impermanent-loss


📝 What is BarnBridge? 📝

It is a cross platform protocol for tokenizing risk – that is the simple explanation. It is a fluctuating derivative protocol that aims to reduce the risk of digital assets & digital asset yield sensitivity by breaking them down into small pieces.

These different tranches can then be separated and bought by Defi investors. Barnbridge is essentially “smoothing out” the risk curve.

Barn Bridge was initially conceived about a year and a half ago just as projects like MakerDao were starting to pick up interest.

💭 What is a CLO 💭

A CLO is a Collateralized Loan Obligation that combines a number of loans into one product and then will tranche out the loan based on particular risk levels. You will have the more senior tranches that have the first rights to income and then you will have the junior who get the residual.

Of course, the more junior tranches do come with more risk and will face losses first in the event that there is not enough income to make up for the amount owed to the senior tranche. They are also first to lose in the even that any of the loans are driven into default.

CLOs were part of the reason that the financial crisis was so severe. They were very opaque and people did not know what was in them and they could not value them.

📈 Smart Yield 📈

Smart Yield is an instrument that is designed to remove the interest rate risk component from crypto debt instruments. By pooling locked crypto collateral into a fund and investing in various different forms of crypto debt, Smart Yield is able to structure fixed rate debt instruments

These fixed rate tranches can be seen as analogous to those senior versions I talked about earlier. They will receive their fixed rate of interest before any other holders are paid

Then, the more risky and junior holders will get a variable rate that will depend on the amount of residual interest from the debt pool – could be large or small depending on how much interest was earned over the entire pool

📈 Smart Alpha 📈

With the smart alpha bonds, volatility will come from the movements in the underlying price of crypto assets. Instead of coming from tranched crypto debt, it will come from tranched volatility derivatives. The Barn Bridge team are calling these “risk ramps”

You are basically pooling funds and tokenizing out those different risk ramps. Or, to use a simple example, the Junior tranche can be thought of as being more levered to the price move than the senior tranche

💰 BarnBridgeDAO & BOND Token 💰

They have called this their “DAO First” launch as the protocol will not be controlled by a company at any stage. Instead, BarnBridge will be a protocol that will be completely governed by a DAO or Decentralised Autonomous Organisation

The goal is to eventually transition this to the BarnBridge DAO which will be the DAO controlled by the BOND community. The BarnBridge DAO will have full control over the protocol and the features that are built into it

You will also have a fair token distribution of those 10 million BOND tokens. You have a fair and prolonged vesting schedule for those tokens that are coming from the founders, seed investors and advisors

BOND tokens are central to the governance mechanism as they are used in order to take part in voting for proposals

You can currently earn BOND Tokens from the numerous liquidity incentivization schemes.


📜 Disclaimer 📜

The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading Forex, cryptocurrencies and CFDs poses considerable risk of loss. The speaker does not guarantee any particular outcome.

#BarnBridge #BOND #Defi #yieldfarming #Review #crypto #Ethereum


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