BarnBridge is a tokenized risk protocol on Ethereum that aims to smooth out the risk curve and offer layered risk management to both DeFi & tradFi investors by building more efficient debt & yield based derivatives.
The two main products of BarnBridge are SMART Yield and SMART Alpha:
- SMART Yield
SMART Yield offers users fixed or levered variable yield on their stablecoins 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.
- SMART Alpha
SMART Alpha allows users to calibrate their exposure to the performance of an underlying asset. It does so by redistributing the performance of an aggregated pool of the underlying asset between two groups of users: a senior side, and a junior side. Whereas the senior side of the pool receives dampened exposure to both upside and downside movements, the junior side takes on levered exposure. Put another way, junior depositors are buying asset price risk off of senior depositors, guaranteeing them price protection up to a certain threshold, in exchange for greater upside potential.
$BOND is the governance token of the BarnBridge DAO. The BarnBridge DAO coordinates the continued development of the suite of DeFi applications, as well as how fee revenues and treasury resources are allocated. Because BarnBridge has no formally incorporated entity in any jurisdiction, staking the $BOND token in the BarnBridge DAO is the only mechanism used to govern the network.