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The BarnBridge digital currency idea and white paper were first conceived in the second quarter of 2019. At the time, MakerDAO had only recently begun to raise public awareness and succeeded in drawing what we know today as the Defi community or decentralized finance.

Rising debt levels were also occurring worldwide before the Covid-19 financial crisis. The first quarter of 2020 saw global debt rise to $ 258 trillion. That figure is 331 percent higher than gross domestic product (GDP), according to the International Finance Corporation (IIF), which represents global banks and financial institutions. Given that the Federal Reserve operates under the guise of having an unlimited cash supply and so-called “printing money,” it is quite clear that these numbers are likely to increase, and debt issuance to GDP will continue to accelerate.

The traditional financial system, referred to in this article as TradFi, is on the verge of a historic peak in total debt, while interest rates and returns are falling. On the other hand, we have a decentralized financial system, referred to as projects. This system is booming in the digital economy with digital assets and cryptocurrencies. Although the level of debt, known as TVL or total value locked into decentralized financial protocols, has grown from a few hundred million in 2019 to billions of dollars in 2020, the low rates offered by similar products in the TradFi system for the return of these protocols. The color loses.

Conversely, due to the higher level of risk offered by default with the higher performance of smart contract technologies, the annual rate of return (APY) on decentralized protocols will differ more than the traditional financial system. Traditionally, higher returns have driven working capital, so we see a higher acceleration of TVL to Defi transitions. This is a trend that will continue in the future.

The need for traditional TradFi-familiar financial instruments across the Defi ecosystem has never been more serious now. This is where the idea of ​​BarnBridge digital currency comes into play.

Features of BarnBridge Digital Currency

BarnBridge digital currency is the first protocol derived from market fluctuations. Before the advent of smart contract technology, it was almost impossible to track and allocate returns to a specific share of capital transparently and without the need for trust. As a result, it was impossible to cover the risk against market fluctuations. Theoretically, to cover various risks, you can make cryptographic derivatives from all fluctuations originating from the market. Examples include interest-rate sensitivity, market price fluctuations, predictable market odds fluctuations, default housing market rate fluctuations, commodity price fluctuations, and a seemingly unlimited number of market-based fluctuations to cover the risk of a given situation…

Barn Bridge aims to build the first derivative protocol with a common infrastructure for all of these fluctuations. The first step will focus on the sensitivity of returns and market prices. A wider range of syllables is introduced in later stages against fluctuations in a decentralized ecosystem. Building BarnBridge Digital Currency was to operate independently of the platform and assets.

You can reduce the risk of digital assets and the sensitivity of digital asset returns by dividing Barn Bridge digital currency into virtually unlimited, separate, dollar-equivalent components or making cryptocurrencies. Barn Bridge Digital Currency is designed to smooth the risk curve and provide risk management layer strategies for Defi and TradFi investors by building debt-based debt and return-based derivatives with greater efficiency.

You can see the risk and loss scenarios below:

Scenario 1:

Scenario 2:

Collected collateral can be deposited in lending protocols or yield contracts. In this way, the returns are tokenized and classified into different trenches. This means that you can buy from the highest trench and get lower returns, But in this case, you will be much less at risk. SMART bonds are recognized as a way to buy and sell return risk based on market-set prices.

SMART Alpha bonds

The structure of SMART Alpha bonds is not consistent with traditional bonds. Instead, it is structured through different levels of market price exposure, known as risk slopes. This means that not every bucket or trench needs to be flat to face the price across its risk curve. The initial $ 100 price target does not have to be affected by volatility. This can be compared to having joint ownership through a share, Except that the risk/reward is different for the shares.

For example, if we assume that the current price of an ETH will be $ 1,000 and that price drops to $ 900, the first (most dangerous) trench will suffer a higher loss percentage. On the other hand, if the price of an ETH unit is to be $ 1,000 and the price rises to $ 1,100, the first (most dangerous) trench will benefit the most.

The calculation and allocation of these gains and losses in trenches are done using intelligent contract algorithms. Each trench can be traded as a unique digital asset and assigned a unique name. These trenches act as risk slopes, in which users, each with their degree of risk, can face the price of digital assets.

SMART Alpha provides a way to build trenches from a single asset and aggregate multiple assets with the ability to generate returns. In this low-risk system, a lower rate of return on capital will increase assets while at the same time causing a lower loss to investors when prices fall. However, the above result will be possible without the need for efficiency. The opportunities available to the downstream vertebrae to take advantage of the risk slopes in the context of various collateral obligations are among the logical advances of these slopes.

user interface UI / UX (on)

TON BOND

The BOND token is an ERC-20 token used to stick in the system. The token will also be used as a governance token by launching the BarnBridge digital currency governance module. The ERC-20 token standard requires that the $ BOND token be traded at all exchanges and can be stored in any wallet. In this way, it will be possible for anyone from anywhere to access this token.

The initial release of BarnBridge

The details of the BOND token distribution are obtained to facilitate most decentralized protocols. That power is not only in the hands of a few people in circulation.

Fair assignment

The token transfer plan is designed so that users do not find themselves in a vulnerable position in the market after a while. Tokens for founders, early investors (Seed), and consultants are all locked into a smart contract, and these tokens are released weekly over two years. The divestiture period begins with the launch of the Yield Farming mechanism. The details of this transfer are as follows:

• The total amount of band tokens ($ BOND): 10000000
• Percentage of $ BOND tokens for founders, start-ups, and consultants: 22%
• The total amount of $ BOND tokens assigned: 2200000
• Assignment period: 100 weeks
• Release schedule: Weekly
• Amount of $ BOND tokens released per week: 22,000
• Percentage of $ BOND tokens released per week: 0.22%

The future of BarnBridge digital currency

Because it is necessary to perform several operations, each with a different fee, these fees are accrued quickly. Layer 2 solutions increase scalability and allow for complex operations and high-volume transfers while reducing associated costs. One of the potential solutions that have already been provided to the main network is ok rollups. These rollups cause transfers to accumulate in a single transaction. Most calculations related to this process are performed outside the chain with the help of proof certificates. Thus, by doing most of the work outside the chain, one can expect higher throughput and lower costs. Another important point is that the security of users is maintained in this way. Given that this application targets a large community of active users, scalable solutions will be the best.

• SMART Swaps – This would be a loan that could be broken down into four financial instruments.
• SMART Forecast Market Risk Coverage – Crypto derivatives cover the risk of fluctuations in the forecast market.
• Market-Driven Ratings Oracle Prediction

Using collective wisdom, we can create an index that acts as a ranking system and provides a mechanism for predicting (Oracle performance). This mechanism can be used on any platform in the Defi network.

In short, if higher-risk trenches are more popular, they can be considered early signs of lower risk. Similarly, if the volume of use of safe, low-yield trenches increases, this would be an early warning signal for system vulnerability and potential imminent danger.

BarnBridge Price History

The BOND token has gone through many ups and downs since its initial introduction to the market. The token was first sold in late October 2020 for an incredible $ 146.2. But it did not take long for the price to drop to half its original price, and at the beginning of November 2020, each BOND token sold for $ 85.6. BOND prices had fluctuated sharply since the end of August 2021, when you registered this token worth less than $ 28. You can see the peaks and valleys of the token band price in the chart below from the CoinMarketCap site.

Where to buy and store BarnBridge digital currency?

Many reputable BOND exchanges currently trade Barn Bridge digital currency tokens. You can visit exchanges to buy BarnBridge digital currency tokens, including Binance, CoinBase, Uni Swap, Gemini, and Gate.io. 1-inch and IDEX exchanges, and some lesser-known exchanges. You may also buy and sell band tokens in pairs with Tetra or Ethereum. It is better to buy Tetra from Iranian exchange offices first and then convert your Theter into Barn Bridge digital currency in the mentioned foreign exchange offices. Also, if you are looking for reliable and secure wallets for your Barn Bridge digital currencies. We offer you two popular wallets, Metamask and Trust Wallet.

Concluding remarks

This article has tried to provide you with general information about the BarnBridge digital currency project and the token bond ($ BOND). Naturally, this information is not a good alternative to specialized financial advice. To be able to step into the financial and cryptocurrency markets with confidence in your success. You must do research and research your top priority and decide the fate of your assets as carefully as possible…