decentralized finance (DeFi)<\/a> protocols. They enable the system to then create multiple assets within a single debt pool with varying risk\/return characteristics.<\/span><\/p>\nInvestors can evaluate these tokenizing yields and debt derivatives to see what best fits into their investment strategy. Users may stake BOND tokens in different tranches of various risks. Notably, these tranches leverage the DAO to decide what pools are next to be deployed on the network.<\/span><\/p>\nBarnBridge SMART Yield<\/h2>\n
Smart Yield Crypto Bonds provide investors with another way to secure profits. Users can stake these bonds and earn passive rewards based on the characteristics of the pool. Since staking doesn\u2019t require users to relinquish ownership of their assets like trading, it\u2019s considered a better option by many. Specifically, SMART Yield allows users to mitigate the variable yield volatility of other projects in the DeFi market.<\/span><\/p>\nSmart Yield users can mint tokens that represent different risk levels of an underlying protocol such as deposits on Aave or Compound. The system enables Senior token holders to receive a fixed yield while junior users benefit from the extra yield generated by senior deposits. This is the case where the variable rate of the underlying debt pool becomes higher than the weighted average guaranteed yields of current seniors.<\/span><\/p>\nBarnBridge Smart Exposure<\/h2>\n
Another cool feature of the market is Smart Exposure. This protocol passively rebalances any two assets in your portfolio. Investors\u2019 can use this feature in combination with tokenized strategies to improve their ROI results.<\/span><\/p>\nBarnBridge Smart Alpha<\/h2>\n
The Smart Alpha feature operates as a two-sided protocol.\u00a0 Barnbridge (BOND) users have the option to take either a senior or junior position on a specific ERC-20-compatible asset using this system. The system enables Juniors to pay seniors a portion of the underlying asset during times of price decline. However, they receive more of the price if the asset appreciates. Reversely, seniors receive full price protection up to a preset threshold. For this protection, they agree to fractional exposure during upswings in value.<\/span><\/p>\nBarnBridge Governance<\/h2>\n
The Barnbridge project is a community-run effort. The network integrates a decentralized autonomous organization (DAO) to provide users with voting rights and more. Users can put forth proposals on vital upgrades such as the introduction of new pools, fee structures, or new features and services.<\/span><\/p>\nWhat is the BOND token?<\/span><\/strong><\/h2>\nBOND operates as the network\u2019s premier utility and governance token. This ERC-20 token lives on the Ethereum blockchain. <\/span>The BOND token supply governs the Ethereum-based cooperative that represents BarnBridge. Users are able to stake and lock their BOND into the DAO to earn voting power for decisions made regarding<\/span> the allocation of BarnBridge resources and the direction of protocol development.<\/p>\nWho Are the Founders of BarnBridge?<\/strong><\/h2>\nBarnBridge was co-founded by Troy Murray and Tyler Ward.<\/p>\n
Prior to working on BarnBridge, Murray founded a crypto R&D firm RUDE_labs, exploring the benefits that blockchain can bring to the media since 2012. He has also worked as director of strategy at Breaker and as a supervisor\/technical architect at snglsDAO Foundation.<\/p>\n
Before going on to co-found BarnBridge, Ward has founded Proof Systems, a digital marketing company focused on the fintech industry. Ward has also worked with ConsenSys, Earn.com, FOAM, Dether, Grid +, Centrality, Sylo, NEAR Protocol, DARMA Capital, SingularDTV and snglsDAO.<\/p>\n
What Makes BarnBridge Unique?<\/strong><\/h2>\nSustainable DeFi platforms like Compound (COMP) and Aave (AAVE) provide over 5% annual percentage yield (APY) on some assets. With profitability optimizers like yEarn, APY can grow to over 10%. The drawback of these DeFi platforms is that they don’t offer fixed income; additionally, adding cryptocurrencies to a portfolio means taking on significant risks as cryptocurrency assets are highly volatile.<\/p>\n
BarnBridge’s advantage is that it can aggregate yields with fixed income and flatten them to improve the efficiency of the system. This helps make the entry into the crypto industry more personalized and predictable for consumers<\/span>, opening it up to a wider audience. From the standpoint of traditional finance, BarnBridge can be used to improve the effectiveness of stock trading.<\/p>\nBarnBridge creates tokenized derivatives based on market fluctuations. Examples of underlying markets include rates of return, prices, market prediction odds, default rates on mortgages and others. These derivative tokens are divided into high, medium and low risk<\/span>\/reward categories. BarnBridge is a cross-platform risk tokenization protocol with tranches of fixed income and volatility.<\/p>\nBarnBridge also supports SMART Alpha Bonds that can be used to tokenize price risks. They can expose users to large, medium, or low price fluctuations. Smart Alpha Bonds on Ethereum can be used as derivatives to hedge against any ERC-20 token price fluctuations.<\/p>\n