What Is Beta Finance (BETA)?
Beta Finance is a money market on Ethereum for lending, borrowing, and shorting cryptocurrencies. This platform seeks to allow users to access a scalable and accessible money market where tokens can be listed automatically and permissionless. Shorting is a counterbalancing force to price volatility and a crucial component of financial infrastructure to lower the chances of loss.
According to the whitepaper, the objective of this project aims to allow DeFi users to have the capability to act as an opposing force to price volatility by providing a seamless and straightforward experience to short assets. Further, the mission of this network seeks to counterbalance the volatility in DeFi today by creating essential infrastructure and user tooling to encourage market efficiency.
Furthermore, this platform seeks to utilize an isolated collateral model for fund security. So that even if an asset is compromised, the whole protocol stays safe. The isolated model offers Beta users confidence that their tokens are secure even if Beta has a market with a compromised asset.
Also, smart contract, market risk, and counterparty evaluate the qualified markets configured by governance. These risks form the risk parameters that are set for the assets.
BETA is the governance token of Beta Finance and seeks to have the following current and intended functions:
Staking incentives: The token holders can stake their tokens on the protocol and work as a backstop covering shortfall events. The token holders who stake their BETA token will get a share of the revenue generated by the protocol.
Governance: The BETA token holders will be able to partake and vote in the network's governance process. Through governance, users can influence the platform's product features and some critical parameters.
Liquidity mining: Liquidity providers can stake their tokens into the lending pools to boost borrowing and short selling. Also, to incentivize these providers given opportunity costs, liquidity providers will be eligible to receive BETA tokens through a liquidity mining program.
