The Bainbridge digital currency idea and white paper was 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 increase to $ 258 trillion. That figure is 331 percent higher than the 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 pretty 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, which we will refer to here 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 innovative contract technologies, the annual rate of return (APY) on decentralized protocols will differ more than the traditional financial system. Traditionally, working capital has been driven by higher returns, which is why 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 than now. This is where the idea of ​​BarnBridge digital currency comes into play.

What is BarnBridge Digital Currency? Risk slopes and TradFi stairs

Decentralization instruments in decentralized markets, which have more APY than traditional markets, are now digital currency-backed loans. Instead of selling digital currencies and receiving fiat currencies, borrowers stick to digital assets and receive digital assets in return. Although these loans are often short-term loans offered to traders, this system has proven its effectiveness and potential for development.

Such high efficiency will inevitably increase the value and duration of lending in decentralized head offices. Smart contracts make this possible. These contracts can hold digital collateral as long as both parties to the transaction meet their algorithmic obligations.

The efficiency of smart contracts and DAO technologies make it possible to build system-derived composite financial instruments and provides a degree of transparency and security unimaginable in current financial networks.

All of these benefits now come from crypto-backed loans.

As mentioned earlier, these benefits are likely to be generalizable to mortgages and corporate debt and will be transferred to decentralized platforms over more extended periods. It also moves more complex derivatives to decentralized platforms depending on debt and returns, So we will be able to structure much more complex products and track them with much greater efficiency and transparency than was possible before the invention of blockchain, digital currencies, smart contracts, and decentralized technology.

Over time, $ 244 trillion in debt and return-based derivatives are transferred to more efficient technologies. The migration of returns and return-based products from lower-efficiency centralized financial systems to high-efficiency decentralized economic systems will become one of the significant examples of wealth turnover in human history.

The purpose of creating BarnBridge digital currency was to help facilitate this transition, increase the efficiency of the decentralized financial system as much as possible, and increase its flexibility in risk and attractiveness to a wide range of audiences.

Those who want to enter the cryptocurrency market but 1) do not want to risk owning, lending or receiving a complete digital asset and 2) do not intend to use a decentralized organization (DAO) to create a contract. Smart With the ability to document both sides of the loan or agreement, there are countless choices in the market.

More than 99.9% of global debt is still shaped by traditional markets and is thirsty for return.

On the other hand, more advanced financial companies do not take any risks. This causes different structures to form at each point in the return curve, the most risky of which (most likely hedge funds) is to allocate the least possible amount of money in return for the highest return on hedge or condition.

In contrast, more conservative investors often tend to overlook large amounts of growth opportunities in order to access safer financial instruments. The “risk-free” products TradFi refers to are not currently available in a decentralized financial ecosystem.

The good opportunity created for structuring this type of financial instrument allows more risk-averse investors in traditional markets to migrate to decentralized markets.

In the short-term (DeFi) and medium-term (stock proof) phases, the risk slope continues to create markets and industries commensurate with traditional investment firms that want to “start from scratch” and “reach above 1%.”

Meanwhile, more types of loans will be transferred to decentralized head offices. In the long run, and in part as a result of this process, lenders and borrowers will realize why superior and less trustworthy intermediaries are superior and less expensive than current third-party intermediaries.

If that happens, larger deficits of more than $ 244 trillion in global debt will be transferred to the chain, giving Fiat and cryptocurrency depositors a chance for higher returns, higher risk slopes and more CD-like products (collateralized debts). Commercial banks and new financial markets will be provided.

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 not possible to cover the risk against market fluctuations. Theoretically, in order 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. In later stages, a wider range of syllables is introduced against fluctuations in a decentralized ecosystem.

The purpose of 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.

SMART yield bonds

At present, the decentralized financial system mainly offers variable annual pension rates. However, it will be possible to set a fixed rate of return in the form of collateral locked up with the maturity of the repayments or bonds, as well as a fixed rate return with no maturity or pension.

We believe this is not a new idea and such products will naturally appear on the DeFi network over time. However, the diversity of derivatives and the resulting reduction in financial planning complexity will be mesmerizing if there are consistent returns on smart contracts compared to traditional financial markets.

Decentralized financial instruments demonstrate the strength of the financial industry without the need for trust.

DeFi power plant projects such as MakerDAO, Synthetix, AAVE, Compound, Curve and other projects by replacing registrars, attorneys and hierarchies with algorithms, trust-based oracles and decentralized head offices, without any restrictions. , Generate returns for users.

Market-based returns are different for each decentralized platform, and yet there is no single service for gathering all the different decentralized protocols and normalizing the risk curve and reducing the risk of derivatives.

In addition, lending protocols do not work in the current DeFi markets. There is also the ability to earn returns from multiple protocols and trench them into two categories with high and low returns in traditional financial markets; But in decentralized financial markets, it is found to be more efficient, assuming an acceptable level of liquidity.

So not only can DeFi users achieve consistent returns this way, but these returns are aggregated from multiple protocols in the ecosystem to form a more efficient market. This in turn, makes the yield curve smoother.

While each of the lending protocols is expected to introduce concepts of fixed income on its platform, a major difference in the meta-protocol approach to fixed income lies in the diverse assets and variable risk of the platform. Algorithmic aggregation of digital assets with the potential to generate interest on a number of lending platforms enables us to achieve higher efficiency through risk dispersion and risk curve normalization.

Given that the BarnBridge digital currency platform does not lend money directly from a dedicated platform but instead collects loans from across the network, this allows us to operate platform-independent as well as digital assets. The result paves the way for more sophisticated structuring and downstream bond rating systems.

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 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. In fact, 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 is going to 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 is 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 own 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 that is 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 in the world to access this token.

Initial release of BarnBridge

The details of the BOND token distribution are obtained with the aim of facilitating most decentralized protocols and ensuring 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 a two-year period. The divestiture period begins with the launch of the Yild Farming mechanism.

The details of this transfer are as follows:

• Total amount of band tokens ($ BOND): 10000000
• Percentage of $ BOND tokens for founders, start-ups and consultants: 22%
• 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

Due to the fact that 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 has already been provided to the main network is zk 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, doing most of the work outside the chain can expect higher throughput and lower costs. Another important point is that in this way the security of users is maintained. Given that this application targets a large community of active users, solutions that are scalable will be the best solutions.

• 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 as 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 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 have 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. Exchanges that you can visit to buy BarnBridge digital currency tokens include Binance, Uni Swap, Gemini, and Gate.io. 1-inch and IDEX exchanges, and some lesser-known exchanges, may also buy and sell band tokens in pairs with Tetra or Atrium.

It is better to buy Tetra from Iranian exchange offices first and then convert your Tetra 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, Metamsk and Trust Wallet.

Concluding remarks

In this article, we have 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, and in order to be able to step into the financial and cryptocurrency markets with confidence in your success, you must make research and research your top priority and decide the fate of your assets as carefully as possible