- The BarnBridge Ethereum-based Protocol Governance Token has seen a 506% increase since its launch on October 25.
- The decentralized BarnBridge protocol receives $ 1 million in funding and is supported by Fourth Revolution Capital.
With nearly 2% profit in the last 24 hours and 24.41% in the last 30 days, Bitcoin leads the cryptocurrency market in its rally. However, interest in the DeFi sector remains strong. This is evidenced by the increase in the price of Polkadot (18.20%) in the last week. Its competitor, Ethereum, also offers opportunities for investors in the DeFi sector.
The launch of the BarnBridge decentralized tokenized risk protocol, according to its official website, has shown good performance. BarnBridge was a project that generated a great deal of hype in the crypto space. Conceived to function as a multi-platform protocol that will allow users to build derivative products from “possible market fluctuations to protect themselves from various risks”.
Delphi Digital analyst Ashwath Balakrishnan explained the reason behind BarnBridge’s hype in a series of tweets. The protocol facilitates the management of financial instruments that can be assigned to pools with “different risks and benefits”. Users choose the amount of risk and reward they wish to take. The analyst adds:
This creates a structure where risk-averse investors can put their capital into a senior tranche to take part in the rise in cryptocurrencies without deviating from their risk profile or maximum desirable withdrawal.
Round of financing and increase on the Ethereum-based token
In early September, BarndBridge received $ 1 million in a seed round. The round was led by major players in the crypto market such as Fourth Revolution Capital (4RC); ParaFi; Kain Warwick, founder of the Synthetix protocol; Stani Kulechov, founder and CEO of the Aave protocol; Blockchain company; Dahret Group, among others.
The protocol records $ 300 million in Total Value Locked (TVL). It also launched its BOND governance token on Sunday, October 25th. Data from CoinGecko indicates that since its launch, the token has recorded a profit of 504.4% after moving from its initial price of $ 30 to its all-time high of $ 182. After a decline in the past 24 hours, the token has a price of $ 152.
The team behind the protocol decided to make a “fair” distribution of the token. Combined with the features of the protocol, it appears to have created strong incentives for investors. BOND is distributed to all “farmers” who provide liquidity in the smart contract:
The idea is simple: you put an asset in a pool for a set period of time, and the asset is returned to you, along with an additional asset that you are rewarded for “proving” you have capital.
CoinGecko co-founder Bobby Ong you think that the price of BOND will drop in the next week. Ong believes that the BarnBridge protocol product will benefit users and said he is interested in “their fixed interest rate solution”. However, according to NGO, BOND could be too expensive. While he praised BOND’s distribution system, he also said:
Only allowing farmers to collect their proceeds at the end of each week (Monday, 8:00 GMT + 8) created very low circulation in the market during this first week and no efficient price discovery resulting in very low sales pressure that causes a price increase.