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- The Ethereum-based Token BOND protocol, BarnBridge, went from $ 1 to $ 150 in less than a week.
- Of BOND’s total supply, 60% will be distributed to the community and 8% to “fruit growers”.
Although Ethereum has dropped below $ 400, it still records nearly 7% profit in the last week and 10% in the last 30 days at the time of publication. Market sentiment is very bullish. Investors paid particular attention to the BarnBridge Protocol BOND token. Since its launch, it has shown one of the best performances in the DeFi industry.
According to his Twitter page, the decentralized protocol accumulates approximately $ 332 million in Total Value Locked. BOND was launched on October 25 with an exchange value of $ 1.33. At the time of publication, BOND is trading at $ 150 after falling from its all-time high of $ 182. This represents an increase of 11.178%.
As reported by CNF, the protocol has raised many expectations among some of the most prominent personalities in the DeFi industry. These include the founder of the Synthetix protocol, Kain Warwick, and the founder of the Aave protocol, Stani Kulechov. They both participated in a funding round that amassed $ 1 million. The round was led by Fourth Revolution Capital (4RC).
Prediction:@barn_bridge Pool 1 will exceed TVL by $ 1 billion by epoch 4
– Tyler Reynolds (@ tbr90) October 27, 2020
What is the difference between BarnBridge and other Ethereum DeFi protocols?
BarnBridge is a decentralized protocol for tokenized risk. It was created to function as a cross-platform protocol. Investors using it will be able to build derivative products from “any fluctuation in the market to protect themselves from various risks”. Therefore, the bonds will be created and offered to investors with different levels of risk.
The protocol will allow investors to choose the amount of risk and return they wish to assume. Thus, investors who prefer to avoid risk are encouraged to use the protocol. Research firm Multi.io Research provides the following example to explain how BarnBridge works:
A real example of this process is mortgage-backed bonds, where safer “AAA” bonds can be combined with less safe “BBB” bonds to increase yield. The new combined bond is then hedged between two different classes of investors who choose their possible returns based on their risk appetite.
The company adds that BarnBridge will add two products in the coming months. Again, these products will aim to be a “safer alternative” for user investment in the DeFi industry. The products are called Smart Performance Bond and Smart Alpha Bond. In the first product, the less risky investor will receive a “guaranteed” return of 3%, the second will offer a solution to reduce the volatility of an asset by “subsidizing” the risk.
The BOND governance token will allow the community to have more say in key protocol decisions. The token will have a total supply of 10,000,000. 60% will go to the community, 8% to yield farmers, 10% to the DAO treasury, 22% to founders and initial investors and advisors.
CoinGecko co-founder Bobby Ong said the token is overvalued. Therefore, he expects that there will be a drop in the price over the next week. Ong believes that the project is still very recent and that “no effective price discovery has been made”. In this sense, Multi.io Research adds:
Depending on the price of the token and the commitment of the community and founders to the project, “HOLDING” the token can have a negative impact on the market by creating an unsustainable inflation rate for the first 2 years of the project’s life.
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