BOND is an Ethereum token that governs BarnBridge, a protocol that enables users to hedge against DeFi yield sensitivity and price volatility. Its first application, SMART Yield, allows users to choose between risk profiles for lending on DeFi protocols such as Aave and Compound. By using SMART Yield, senior bond investors can receive fixed rates at potentially lower risk while junior bond investors can receive higher rates at higher risk.
What Is BarnBridge (BOND)?
Trading under BOND, BarnBridge is a risk tokenizing protocol. This means the protocol enables users to hedge against yield sensitivity and price volatility. The platform aims to reduce the risks associated with decentralized finance (DeFi), such as market price risk, cash flow volatility, and inflation risk.
The decentralized finance space has plenty of opportunities, but it is full of risks. Users getting hacked and scammed, variable interest rates, and the longevity of projects are some of the common risks. Given the situation, the BarnBridge platform emerged to tackle these challenges. The platform aims to assure investors through its tokenized risk protocol.
As per the whitepaper, the platform allows users to select a risk profile as per individual requirements. The user can then redistribute this risk through tokenizing derivates. By offering a platform where users can access fixed-income instruments, BarnBridge tries to make DeFi more intuitive for casual investors. The platform also improves efficiency by enabling users to choose their risk threshold.
Running on Ethereum, the ecosystem of BarnBridge involves various key projects:
Smart Yield: This allows users to hedge against interest rate risks in DeFi markets.
Smart Exposure: This allows users to passively rebalance between any two assets via tokenized strategies.
Smart Alpha: This gives users more control over their exposure to the performance of a particular digital asset.
Coming to the token, BOND is the native token of the platform and the platform’s cryptocurrency. This is an ERC20 token and is used as the governance token. BarnBridge is a decentralized autonomous organization (DAO) governed through BOND tokens. As per the official docs, the holders of the token can participate and vote in the decision-making and hence drive the future of the platform. The platform allows users to farm, stake, and earn rewards using BOND tokens.
History of BarnBridge (BOND)
Launched in 2019, the BarnBridge platform was cofounded by Troy Murray and Tyler Scott Ward.
Murray has earlier worked on SingularDTV. He has also worked on the equity crowdfunding platform.
Meanwhile, Scott manages Proof Systems, which is a large marketing company focusing on digital assets.
The platform launched its whitepaper in the second quarter of 2019. During its initial coin offering (ICO), the platform managed to raise $1 million.
The road map of the platform suggests that the team has made several value additions to the platform. For instance, the liquidity pool to stake the tokens was introduced on October 26, 2020. The rewards program for voting was launched on February 8, 2021. And the most recent addition was Smart Alpha in September 2021.
How Are New BarnBridge (BOND) Tokens Created?
Holders can easily stake their BOND tokens. The primary intent of staking BOND is for users to earn voting rights. Incentives are given to the participants in the decision-making of the platform. Further, the platform also sends out BOND rewards for providing liquidity to the platform.
How Many BarnBridge (BOND) Tokens Are There?
There is no hard cap on the BOND tokens to be issued.
How to Purchase BOND Tokens
The BOND token is available on several centralized and decentralized exchanges like Coinbase, an easy-to-use and beginner-friendly platform.
