What Is Barn Bridge (BOND)?

What Is Barn Bridge (BOND)? Complete Guide Review About Barn Bridge.

What Is Barn Bridge (BOND)?

Barn Bridge are pleased to welcome you on the BarnBridge Docs page. It’s a great place to start learning more about the protocol and its products. This is a risk tokenizing protocol. It aims to reduce the risks associated with DeFi, such as inflation risk, market price risk, and cash-flow volatility risk. By letting users select a risk profile, Barn Bridge can redistribute risk via tokenized, liquid tranches.

Barn Bridge does this with its SMART Yield, SMART Exposure, and SMART Alpha products, all of which address a specific DeFi risk category.The continued development of the dApps is provided by the core team and governed by the community through the Barn Bridge DAO.

Barn Bridge Storage Key Points

Coin BasicInformation
Coin NameBarn Bridge
Short NameBOND
Circulating Supply6,415,080.43 BOND
Total Supply10,000,00010,000,000
Source CodeClick Here To View Source Code
ExplorersClick Here To View Explorers
Twitter PageClick Here To Visit Twitter Group
WhitepaperClick Here To View
Support24/7
Official Project WebsiteClick Here To Visit Project Website

What Is SMART Yield?

SMART Yield offers users fixed or levered variable yield on their stable coins through integrations with lending markets like Compound and Aave. It aggregates user deposits into underlying markets on these platforms and allocates the yield generated on the sum between two different risk profile subsets.

Barn Bridge Alice is a crypto veteran looking to reduce the volatility of her portfolio. She decides to allocate a portion into stable coins and is looking for predictable fixed rates of return. Bob is a more aggressive DeFi power user. He is willing to take higher risks with his capital in order to get an opportunity for higher returns.

Benefit from levered yields

Seniors lock in a fixed-rate yield upon entering their side of the pool. This fixed rate is determined by the underlying market rate, as well as the ratio between existing seniors and juniors. The yield that is allocated to any given Senior pool depositor is allocated directly from the Junior pool; that is to say, the yield exists in the system from the moment the Senior bond in question is minted.

Barn Bridge Juniors are willing to subsidize senior yields as they have the opportunity to benefit from levered yields. Because seniors are only entitled to their fixed yields, all yield generated by their principals goes to the junior side. So while Junior depositors are indeed risking their yield and potentially their principal, the Junior pool receives all of the yield earned by the entirety of the capital deposited into that given market.

ABOND

Each pool can contain an unlimited number of senior and junior positions. In order to calculate the pool profits and losses efficiently, the weighted average across all existing senior bonds is used. This weighted average is represented by the ABOND variable. SMART Yield Junior pool positions are represented by ERC-20 fungible tokens, which call junior tokens (jTokens). Junior tokens are minted each time the user purchases them at a current conversion rate using Barn Bridge app.

Senior APY

Senior APY is the annual percentage yield that is available for the next marginal senior bond to be minted. This figure fluctuates in accordance with a rolling average of the underlying interest rate market. When a user deposits into the Senior pool, this is the maximum fixed yield they can expect to lock in. Slippage occurs when the principal size brings the Senior pool size closer to, or greater than, that of the Junior pool.

Barn Bridge In order to exit the junior position using junior bonds, two steps should be initiated. Step one is minting a junior bond token by choosing the 2-step withdrawal option. Step two is redeeming the liquidity at its maturity date.

Junior APY

Junior APY determines the annual percentage yield for the junior tokens at the current time. It is realized only when exiting the position and converting Barn Bridge into the underlying asset. There are two ways to withdraw Junior pool liquidity. Depending on the method, users are able to either withdraw immediately or after a calculated period of time. In the case of the latter, Junior bonds are ERC-721 non-fungible tokens that are used to represent the unique circumstances of a given user’s exit from the pool.