BarnBridge: 用于对冲收益率敏感性和市场价格的波动衍生品协议

DAO Tools

2 years ago • 37 min read

BarnBridge: 用于对冲收益率敏感性和市场价格的波动衍生品协议

DAO Tools

2 years ago • 37 min read • Loading Views

DAOrayaki DAO研究奖金池：

资助地址: DAOrayaki.eth

投票进展：DAO Committee /7 通过

赏金总量：200 USDC

研究种类：BarnBridge, SquadDAO, TradFi, DeFi, Structured Market Adjusted Risk Tranches (SMART), Bounty Hunters, yield bonds, SMART Alpha Bonds, yield-based derivatives

贡献者：Jones, Julie, DAOctor @Daorayaki

创立时间：2019 年第二季度

代币名称：BOND

代币类型：ERC-20

融资

BOND 初始价格：0.03 美元，初始代币发行于 2020 年 12 月 15 日，并于 2020 年 12 月 22 日结束。通过 ICO 筹集的美元总额为 635 万美元。

BarnBridge (BOND) 是一种代币化的风险和波动衍生品协议，允许投资者使用基于债务的衍生品对冲收益率敏感性、市场价格风险和利率波动。此外，BarnBridge 为许多去中心化金融平台提供可变利率年金的替代方案，以具有还款期限的锁定抵押品 (BONDS) 的形式将收益率构建为固定利率，并提供无期限的固定利率年金。这种独特的衍生品重组方法为不熟悉去中心化金融方面的投资者降低财务规划的复杂性。 BOND 代币持有者可以质押平台的原生 ERC-20 治理代币以获得社区投票权。 BarnBridge 的 SMART Yield 系统根据风险将基于债务的衍生品池分为几部分，量化为 ERC-20 代币 jTokens以应对更高风险，或量化为 ERC-721 sBOND NFTs 以降低风险。

I.背景

在 Covid-19 引发金融危机前，全球债务水平加速上升。 2020 年第一季度，所有国家的全球债务都增加到 258 万亿美元。根据全球银行和金融机构的 IIF 的数据，这个数字比全球 GDP 高出 331%。随着美联储以无限的现金供应为借口运作，并且委婉将“money printer goes brrrr”加入到主流词汇，很明显，这些数字在不断增加，债务发行占 GDP 的比重将继续加速。

被称为 TradF 的传统金融体系正在经历总债务水平的历史性上升，同时收益率和利率暴跌。与此同时一个去中心化的金融系统—DeFi，在数字经济中以数字资产和加密货币的形式蓬勃发展。虽然被称为 TVL 或锁定在去中心化金融协议中的总价值的债务水平，已经从去年的数亿美元增加到 2020 年的数十亿美元，但这些工具的收益率依旧低于传统 TradFi 系统中同类产品的费率。

相反，由于假设高风险水平以及智能合约技术提供的高效率，去中心化协议的年收益率 (APY) 远高于传统金融体系中的收益率。工作的目的遵循追求更高收益率的历史趋势，这就是为什么 TVL 正在加速向DeFi转变。因此，在整个 DeFi 生态系统中对 TradFi 工具的需求更加强烈。 BarnBridge 应运而生。

1. DeFi 入门：风险斜坡和 TradFi 桥

比传统市场中的收益产品产生更高的 APY的去中心化市场中的收益产品，目前加密支持贷款。借款人不是以法定货币出售加密货币，而是抵押数字资产并获得数字资产作为回报。虽然这些贷款主要是向交易商提供短期贷款，但该系统已被证明是高效且适合扩展的。这些功能将获取更多价值，向分布式账户提供更长期限的贷款。现有功能是通过智能合约持有数字抵押品的能力实现的，直到交易双方通过算法履行其义务。

保管、结算和托管——这些在传统系统内劳动密集型、成本高昂的动作——正在抽象为算法动作，从而减少执行这些动作的劳动力所收取的租金。

这些功能，加上对高风险的预判，便是去中心化系统收益更高的原因。随着DeFi 中的风险向 TradFi 中所感知的风险水平靠拢，智能合约的高效将继续为去中心化系统提供比传统中心化系统更高的收益。例如，根据贷款的性质从向交易商提供的加密支持贷款转移到向房东提供抵押贷款

更重要的是，智能合约和 DAO 技术的效能允许构建更复杂的衍生工具，并提供当前金融网络难以支持的透明度和安全性。所有这些效能目前都源于加密货币支持的贷款。

正如前面所讨论的，这些效能可以追踪抵押债务和公司债务转移到中心化平台的时间线。这也鼓励基于债务和收益率的更复杂的衍生品转向去中心化平台。由于区块链、加密货币、智能合约和去中心化自治组织技术的创新，使得构建更复杂的衍生品并比以前具有更高的效率和透明度成为可能。随着时间的推移，244 万亿美元的债务和基于收益的衍生品将继续推动更高效的技术发展。

收益率和基于收益率的衍生品从效率较低的中心化金融系统迁移到效率较高的分布式金融系统，将是人类历史上最大的财富转移之一。 BarnBridge 的存在是为了帮助促进这种转变，并使去中心化的金融系统更加高效、灵活的风险、并吸引更广泛的参与者。

对于想要进入加密货币领域的人们来说，有一个巨大的市场，他们 (1) 不想承担拥有、借贷或接收整个数字资产的全部风险曲线 (2) 永远不会花时间加入加密货币去中心化自治组织 (DAO) 以创建智能合约，该合约通过算法编写贷款或协议双方的脚本。超过 99.9% 的全球债务仍然是通过传统市场构建的，并且渴望获得收益。相反，更先进的金融公司没有风险承受能力。这允许在收益率曲线的每个点上采用不同的结构，风险最高的（可能是对冲基金）希望以最少的资金投入最高的赌注/对冲回报。而保守的投资者往往愿意放弃大部分上涨机会以获得更安全的工具。正如 tradFi 所描述的那样，“无风险”产品目前尚未在去中心化金融生态系统中出现。构建这些类型的工具将为传统市场中更保守的投资者进入去中心化市场提供机会。

在短期阶段 (DeFi) 和中期阶段 (Proof of Stake) 风险上升将继续为想要“摆脱零”或“超过 1%”的传统投资公司创造市场。随着这种情况的发生，越来越多的贷款将转移到去中心化的分类账单上。从长远来看，一部分经历过去中心化的贷款人和借款人将理解为什么去中心化和去信任的中介机构比目前的第三方中介机构更优越且成本更低。当这种情况发生时，全球 244 万亿美元债务的账本将逐渐转移到链上，为新时代商业银行和金融市场的法定和加密用户创造了获得更高收益、更大风险和更高 CD 类（抵押债务）产品的机会。

II.团队、附属公司和合作伙伴

1. 核心团队

Murray - Troy 经营一家 RUDE实验室，一家以加密货币为中心的艺术公司。自 2012 年比特币漏洞并陷入困境以来，Troy 一直在探索区块链为媒体和艺术带来的优势。 Troy 曾在加密领域工作，将大部分时间用于以太坊的项目。之前在 SingularDTV/Breaker 和 snglsDAO 上工作，试图打造去中心化媒体和娱乐公司。在此之前，他在 2016 年使用以太坊代币构建了 Title III 股权众筹平台。

Ward - Tyler 经营 Proof Systems，这是最大的几家营销和 UI/UX 公司之一，专门从事数字资产。Tyler 曾与 ConsenSys、Earn.com（已被 Coinbase 收购）、FOAM、Dether 和 Grid+、Centrality、Sylo（一个在新西兰拥有 30 万用户的去中心化消息传递 dApp）、NEAR Protocol、DARMA Capital、SingularDTV 和 snglsDAO 合作。他于 2016 年底开始从事加密行业，并持股了众多电子商务公司。

Digital MOB - DigitalMob 是一家在构建复杂区块链产品方面经验丰富的软件开发公司，通过由 web3 开发人员、Web开发人员/移动开发人员、系统架构师、安全专家和分析师组成的团队担任该产品的技术团队。

Milad Mostavi - Milad 创立并运营 DigitalMOB。他是一位经验丰富的软件架构师，在过去 5 年中与 ConsenSys 合作过十几个不同的项目。他的贡献对于推出 SingularDTV 和 Gnosis 以及协调 SingularDTV 娱乐去中心化生态系统的发展起到了决定性的意义。

Bogdan Gheorghe - Bogdan 认为自己是一个 DeFi 书呆子 - 拥有数学和数据科学背景，过去 2 年他在 Alethio 从事区块链数据的数据分析，使用和研究过几乎所有的 DeFi 协议，以便将 DeFi 风格融入到 Alethio 产品套件。他还从事 Codefi DeFi 数据 API 的开发和销售工作，与当前主要协议的团队都有联系。现在，他是 Digital MOB 的一员，承担产品负责人，负责构建 DeFi 产品。

Dragos Rizescu - Dragos 负责 Digital MOB 的产品开发。他的背景是全栈开发人员，热衷于构建高度可扩展的用户界面。在过去的 5 年中，Dragos 一直处于 web3 技术的最前沿。他共同创立了 Treum.io，这是一个区块链供应链解决方案，为高价值的实物资产带来透明、可追溯性和可交易性。作为开发人员，他是 Gnosis 和 SingularDTV 等项目的核心团队的一员，并为生态系统中的多个项目提供建议和支持，其中最著名的项目是 Alethio。他与 ConsenSys 合作提供支持并在公司的企业部门任职，作为开发团队的一员，为 BHP 提供了第一个非金融以太坊案例、BHP rock样品的跟踪和解决方案以及与 BP 合作的去中心化能源市场解决方案。

2. 顾问/技术合作伙伴

Aaron McDonald - 联合创始人兼首席执行官 Aaron 是一位拥有 20 年经验的科技行业资深人士，在技术公司的各方面拥有领导团队的经验，管理价值超过 10 亿美元的投资组合。Aaron 创立了 Centrality，这是一家价值 1 亿美元的领先全球风险投资工作室，支持利用分布式技术创造新的市场和客户体验的风险投资组合。 Aaron 是全球十几家风险投资公司的董事会成员或顾问。 2018 年，Aaron被授予EY技术和新兴产业类别的年度企业家奖。

Atpar - ACTUS 协议背后的公司 - 其目标是为以太坊社区和 TradFi world提供实现开放、可交互操作和流畅的金融生态系统所需的工具。 ACTUS 协议的核心是利用算法合约类型统一标准 (ACTUS)，该标准是各种金融合约类型在其财务方面的正式表示。

III.BarnBridge DAO 机制

1. 代币化风险协议

Barnbridge 是第一个代币化风险协议。在智能合约技术出现之前，几乎不可能跟踪收益并将收益归因于分散的资本分配，无需信任且透明，以对冲几乎所有的波动。从概念上讲，一个人可以从任何类型的市场驱动因素波动中构建衍生产品来对冲风险，但不限于利率敏感性、基础市场价格波动、预测市场赔率波动、抵押贷款违约率波动、商品价格，以及看似数量无限大的市场波动来对冲特定位置。

BarnBridge 受此启发，为几乎所有波动创建了第一个跨平台的衍生品协议。首先，该团队专注于收益率敏感性和市场价格。在下游，他们计划在分布式的生态系统中引入更广泛的对冲措施。 BarnBridge 旨在成为平台和无资产主义。

一个人可以通过将数字资产和数字资产收益敏感性分成基于无限的、独立的、以美元计价的区块或部分，并从这些部分构建衍生品来降低风险。 BarnBridge 旨在通过构建更高效的基于债务和收益的衍生品来平滑风险曲线，并为 DeFi 和 TradFi 投资者提供分级风险管理。

2. 最初的产品供应

智能美元债券——结构化市场调整后的风险等级。

2.1. SMART 收益债券

使用基于债务的衍生工具缓解利率波动风险。目前，去中心化金融系统主要提供浮动利率年金。然而，将收益率构建为固定利率的能力将以偿还到期的锁定抵押品或债券，以及没有期限的固定利率收益率或年金的形式出现。从 BarnBridge 的角度来看，后者不可能是一个全新的想法，这些类型的产品迟早会出现在 DeFi 中。然而，在智能合约中编码固定收益，使得构建和实施金融规划中的衍生品的类型和复杂性会降低，这将使传统金融市场产生巨大的变化。

去中心化的金融工具展示了去信任化金融行业的潜力。DeFi 领域的项目，如 MakerDAO、Synthetix、AAVE、Compound、Curve 等，通过运用算法、去信任的预算和各种开销代替簿记员、托管和各种去中心化账本的开销，使用户不受 tradFi 工具的限制和寻租。

在众多去中心化平台上可以找到不同的受市场驱动收益率的协议，但没有任何服务将这些去中心化协议整合在一起，并允许标准化风险曲线和衍生品来缓解风险。此外，当前的 DeFi 市场不存在跨借贷协议的效能，但从众多协议中提取收益并将其分成更高和更低收益的功能在传统金融市场中是存在的。如果，假设流动性水平可接受，则在去中心化金融市场中会更加高效。

根据 BarnBridge 团队的说法，第一个架构不仅可以让 DeFi 用户获得固定收益，还可以汇集整个生态系统中众多协议的收益，从而创建一个更有效的市场，再次平滑整个行业的收益曲线。通过算法在多个借贷平台上的数字资产汇集产生利息，BarnBridge 能够通过分散风险和规范行业风险曲线来创造更高的效能，因为 BarnBridge 不直接从本地平台借钱，而是汇集整个行业的借贷，它使我们能够成为平台匿名者和数字资产匿名者，这反过来又将允许下游具有更复杂的架构和债券评级系统。

Risk and Loss Scenarios:风险和损失情景

汇集的抵押品将存入借贷协议或产生收益的合约中，收益将被捆绑到不同的份额并代币化。因此，你可以买所承受的最大份额，获得的收益率较低，但风险状况要低得多。 SMART 债券是交易风险收益率的一种方式，所有定价完全由市场驱动。

2.2. SMART Alpha债券

使用分档波动性衍生品降低市场价格风险敞口。 SMART Alpha 债券不会通过传统的收益率分档，而是通过不同水平的市场价格敞口构建，我们将其称为风险斜坡。这个想法是，在整个风险曲线上，每一次投机或每一档的价格敞口都不再是平坦整个风险曲线，这意味着前 100 美元的价格敞口不需要同样的上下波动。这类似于拥有部分所有权，但这些部分具有不同的风险/回报。例如，如果 1 ETH 的当前价格预计为 1000 美元，当损失到 900 美元，则第一部分（风险最高的部分）将承担最高的损失百分比，相反，如果 1 ETH 的当前价格预计为 1000 美元，当收益到 1100 美元，则第一部分（风险最高的部分）将获得更高的收益百分比。

可以使用智能合约的方式通过算法来衡量和分配这些收益和损失，每一份额都可以作为一种独特的数字资产进行交易。例如，jETH（ETH 价格敞口的初级部分）、mETH（ETH 价格敞口的夹层）和 sETH（ETH 价格敞口的高级部分）。这些部分将作为风险斜坡存在，其中各种风险偏好的用户可以获得数字资产的价格敞口。此外，SMART Alpha 产品将为建立单资产和多资产池的部分让路，以产生收益，并且在基础资产上涨时风险上升较缓的地方获得较低回报，而在相关资产下跌时减少损失。但是，我们可以在完全不需要附加量产的情况下构建它。下游机会会为不同的抵押使用各种风险斜坡，并按预期进行。

2.3. UI/UX Interface (Light):UI/UX 界面（日常版）

2.4. UI/UX Interface (Dark):UI/UX 界面（暗夜版）

3. $BOND代币

BOND 是一种 ERC-20 代币。它在系统中用于质押，并在治理模块启动时作为治理代币。由于符合 ERC-20 标准，$BOND 代币可在任何交易所交易并可存储在任何钱包中——允许世界上的任何人访问它。

3.1. 分配

分布分配旨在促进最去中心化的协议，并确保权力不掌握在少数人手中。

3.1.1. 公平归属

归属时间表的设计目的是避免在特定时间点给用户带来巨大的波动。

分配给创始人、天使投资者和顾问的代币被锁定在智能合约中，该合约每周发布一次，两年期。归属期从流动性挖矿机制的启动开始。分配为：

- $BOND 代币总量：10,000,000。

- 分配给创始人、天使投资者和顾问的 $BOND 代币占比：22%。

- 授予的 $BOND 代币总量：2,200,000。

- 归属时间：100 周。

- 发布时间表：1 周。

- 每周发行的 $BOND 代币数量：22,000。

- 每周发行的 $BOND 代币占比：0.22%。

3.2. 治理

$BOND 代币是系统的治理代币，授权给 $BOND 持有者对平台进行新的投票。结合治理机制和激励持有者，是协调系统中不同利益者的一种手段。$BOND 还被当作安全和策略管理的媒介。 DeFi 协议成功的关键之处是采取去中心化、自动化的治理方式，激励参与者以安全、可持续性参与和为参与者谋福利为目标。

3.2.1.DAO 第一种方法

BarnBridge 正在采用“DAO First Approach”来启动协议，从一开始就选择使用去中心化工具来实现团队完全去中心化的目标，并拥有一个灵活的智能合约系统，能够添加/升级/删除所有基于 DAO的提案。除此之外，BarnBridge 还推出了一个名为 Launch DAO 的DAO孵化器，其最终 DAO 协议称为“BarnBridge DAO”。

- Launch DAO:

从 Launch DAO 开始，创始人、投资人和顾问使用 Aragon DAO 模板，该模板使用可转让代币来代表所有权。决策基于股权加权投票，Launch DAO 将 $BBVOTE 代币作为原生代币，其划分如下：创始人获得 45%，投资人获得 45%，顾问获得 10%。另一方面，支持率设置为 62%，这意味着投票时需要有超过 62% 的有投票权的权益参与。最低限度设置为 62%，这意味着要通过提案必须至少获得 62% 的批准。

来自投资者的资金和 $BOND 代币的初始供应保存在 Launch DAO 金库中。 Launch DAO 还激活了 Aragon Agent，并集成了位于 DAO 内的 Uniswap 池和 Balancer 池分配控制。

- BarnBridge DAO:

BarnBridge DAO 是由 $BOND 社区控制的DAO。 BarnBridge DAO 可以完全控制协议及其内置的功能。这是通过使用Diamond标准 (EIP-2535) 来实现的，它允许我们升级协议，而无需所有成员删除他们代币时切换到协议第二版本。 BarnBridge DAO 还可以完全控制 Diamond，这在 WEB3 空间中提供了更强大的灵活性。

IV.SquadDAO:

在此过程中，BarnBridge 团队为 Discord 平台开发 BOT 以用作实现 DAO 管理的程序，下面我们将简要概述该 BOT 及其各种用途。

随着 DeFi 的发展，越来越多的 DAO 正在推出赏金和资助计划，以从社区成员那里获得一些帮助和参与度。然而，在实践中，并没有明确的流程让贡献者将自己组织成团队并有效地管理授予的资金，他们意识到这件事的重要性，加之BarnBridge 对资助和赏金有很多计划。因此，他们决定创建 SquadDAO，

SquadDAO 使用 Discord 作为声誉系统，允许人们与他人联系并让他们轻松交流。另一方面，Gnosis Safe Multisig ，具有很好的 UI 和 UX，可以帮助团队管理他们的资金。尽管 SquadDAO 是由 BarnBridge 开发，但该团队并未在其上使用 BarnBridge 品牌，因为他们想将这一工具留给整个 DeFi 社区。 SquadDAO ，是完全开源且无需许可的，因此任何项目团队都可以自由获取和使用。

V.联系信息

官网:

-BarnBridge: https://barnbridge.com/

-SquadDAO: https://squaddao.com/

Medium:

- BarnBridge: https://medium.com/barnbridge

-SquadDAO:

https://medium.com/barnbridge/introducing-barnbridge-3f0015fef3bb

Twitter: https://twitter.com/barn_bridge

Github:

-BarnBridge: https://github.com/BarnBridge/

-SquadDAO: https://github.com/dgornjakovic/daofirst-bot

Discord: https://discord.gg/Jtq9vu29

BarnBridge: A fluctuations derivatives protocol for hedging yield sensitivity and market price.

DAOrayaki DAO Research Grant：

Fund Address: 0xCd7da526f5C943126fa9E6f63b7774fA89E88d71

Voting Result：DAO Committee /7 Yes

Grant Amount：200 USDC

Category: BarnBridge, SquadDAO, TradFi, DeFi, Structured Market Adjusted Risk Tranches (SMART), Bounty Hunters, yield bonds, SMART Alpha Bonds, yield-based derivatives

Contributor：Jones, Julie, DAOctor @Daorayaki

Launch date: BarnBridge first appearance was in the Q2 of 2019.

Token name: BarnBridge token was initialized under the name “BOND”.

Token type: BOND was issued under the ERC-20 standard protocol.

Financing:

BOND initial price: $0,03USD, the initial coin offering started in 15th Dec, 2020 and ended in 22th, Dec, 2020.

BOND current price: $24,84USD.

BarnBridge current volume: $62,46M USD.

Total USD raised: the total amount of USD raised through the ICO was $6,35M USD.

Brief Overview about BarnBridge:

BarnBridge (BOND) is a tokenized risk and fluctuations derivatives protocol allowing investors to hedge yield sensitivity, market price risks and interest rate volatility using debt-based derivatives. Furthermore, BarnBridge offers an alternative to the variable rate annuities offered by many decentralized financial platforms, structuring yield into fixed rates in the form of locked collateral with maturity on repayments (BONDS) as well as offering fixed rate annuities with no maturity period. This unique approach to derivative restructuring will reduce complexity of financial planning for investors who may be new to the decentralized financial sector. BOND token holders can stake the platform's native ERC-20 governance token to gain community voting rights. BarnBridge's SMART Yield system splits debt-based derivative pools into tranches based on risk, quantified as ERC-20 token jTokens for higher risk or as ERC-721 sBOND NFTs for lower risk.

I.Background:

The acceleration of debt levels, across the globe, was happening before the financial crisis caused by Covid-19. In Q1 2020, all countries saw a global debt increase to $258 trillion. This number is 331% above global GDP, according to the IIF, which represents global banks and financial institutions. With the Federal Reserve operating under the pretense that they have an infinite supply of cash and euphemism “money printer goes brrrr” joining the mainstream lexicon, it’s quite clear these numbers will likely increase and debt issuance to GDP will continue to accelerate.

The traditional financial system, referred to as TradF, is experiencing a historic uptick in aggregate debt levels while yield and interest rates plummet. Meanwhile, there is a decentralized financial system, referred to as DeFi, burgeoning in the digital economy with digital assets and cryptocurrencies. While debt levels, which is referred to as TVL, or total value locked in decentralized financial protocols, has increased from hundreds of millions last year, to billions of dollars in 2020, yield on these instruments continues to dward the menial rates offered by comparable products in the legacy TradFi system. Conversely, due to assumed higher risk levels coupled with higher efficiencies provided by smart contract technologies, annual percentage yield (APY) is far higher on decentralized protocols than what can be found in the traditional financial system. Working is following the historical trend of following higher yield which is why TVL is moving to DeFi at an accelerating rate. Thus, the need for familiar TradFi instruments to exist throughout the DeFi ecosystem has never been stronger. BarnBridge is an idea whose time has come.

1. DeFi Primer: Risk Ramps and TradFi Bridges:

The yield products in the decentralized markets which are yielding higher APY than yield products in traditional markets are currently crypto backed loans. Instead of selling crypto for fiat, borrowers are staking digital assets and receiving digital assets in return. While these loans have mostly been short term loans to traders, the system has proven to be efficient & ripe for expansion. These efficiencies will inevitably attract higher value, longer duration loans to decentralized ledgers. The efficiencies referenced are enabled by smart contracts' ability to hold digital collateral until both sides of the transaction fulfill their obligations algorithmically. The reduction of custody, settlement, and escrow - labor-intensive, costly actions within the legacy system - to algorithmic actions is reducing the rent charged by the labor to perform these actions. These efficiencies, coupled with the perception of higher risk, are why the yields are higher on decentralized systems. As risk in DeFi converges on risk levels perceived in TradFi, by the nature of the loans moving from crypto backed loans to traders to collateralized mortgage loans to homeowners, for instance, the efficiency of smart contracts will continue to offer higher yield on decentralized systems than traditional centralized systems.

What’s more, the efficiency of smart contracts and DAO technologies allows for far more complex derivative instruments to be built & provides a level of transparency and security unfathomable to current financial networks. All of these efficiencies are currently stemmed and built off of crypto backed loans.

As previously discussed, these efficiencies should extrapolate to mortgage debt and corporate debt moving to decentralized platforms on a longer timeline. This should also encourage more complex derivatives based on debt and yield to move to decentralized platforms. Thanks to the innovations of blockchain, cryptocurrency, smart contracts, and decentralized autonomous organization technology, it becomes possible to structure far more complex derivatives and track them with far greater efficiency and transparency than before. $244 trillion in debt and yield based derivatives will continue to move to more efficient technologies over time. The migration of yield and yield-based derivatives from less efficient centralized financial systems to more efficient decentralized financial systems will be one of the largest movements of wealth in human history. BarnBridge exists to help facilitate this transition and make the decentralized financial system more efficient, risk-flexible, and attractive to a wider range of participants.

There is a massive market for people wanting to get into crypto who (1) don’t want to bite off the entire risk curve of owning, lending, or receiving an entire digital asset & (2) will never take the time to use a decentralized autonomous organization (DAO) to create a smart contract which algorithmically scripts both sides of the loan or agreement. Over 99.9% of global debt is still structured via traditional markets and is starving for yield. Conversely, more advanced financial companies have no risk tolerances. This allows for different structures at each point of the yield curve with the riskiest (likely hedge funds) wanting to put the least money down with the highest return for their bet/hedge. On the contrary, more conservative investors are often willing to give up a large portion of upside opportunity in order to access safer instruments. “Riskless” products, as tradFi describes them, are not currently offered in the decentralized financial ecosystem. The opportunity to structure these types of instruments will allow for more risk averse investors in the traditional markets to move into the decentralized markets.

In the shorter-term phase (DeFi) & medium-term phase (Proof of Stake) risk ramps will continue to create markets and industries for traditional investment firms who want to “get off zero” or “get above 1%”. As this happens, more and more types of loans will move to decentralized ledgers. In the long run, and partially through this process, lenders and borrowers will understand why decentralized and trustless intermediaries are superior and less costly than the current 3rd party intermediaries. As this happens, ledger portions of the $244 trillion in global debt will move to the chain, creating the opportunity for more yield, more risk ramps, and higher CD-like (collateralized debt) products for fiat and crypto depositors of the new age commercial banks & financial markets.

II.Team, Affiliates & Partners:

1. Core Team:

Troy Murray - Troy runs RUDE_labs, a crypto centric artist company. Troy has been exploring the many benefits that Blockchain can bring to media and artists since 2012 when he got bit by the Bitcoin bug and has been falling down the rabbit hole ever since. Troy has worked in an around the Crypto space, devoting most of his time to Ethereum based projects. Previously was working on SingularDTV/Breaker and snglsDAO trying to decentralize media and entertainment. Before that he was building a Title III equity crowd funding platform using Ethereum tokens in 2016.

Tyler Ward - Tyler runs Proof Systems, one of the largest marketing & UI/UX companies specializing in digital assets. Tyler has worked with ConsenSys, Earn.com (who was acquired by Coinbase), FOAM, Dether, & Grid+, Centrality, Sylo (a decentralized messaging dApp with 300k users in NZ), NEAR Protocol, DARMA Capital, SingularDTV & the snglsDAO. He started working in crypto in late 2016 & has bought and sold numerous ecommerce companies.

Digital MOB - DigitalMob, a software development company experienced in building complex blockchain products, is taking the technical role in the product with an extensive team of web3 developers, web and mobile developers, system architects, security experts and analysts.

Milad Mostavi - Milad co-founded and runs DigitalMOB. He is a seasoned software architect and in the past 5 years has worked with ConsenSys on a dozen of different projects. His contribution was decisive in successfully launching SingularDTV and Gnosis and orchestrated the development of SingularDTV’s entertainment decentralised ecosystem.

Bogdan Gheorghe - Bogdan considers himself a DeFi nerd - with a background in mathematics and data science, he spent the past 2 years at Alethio doing data analysis on blockchain data, using and researching almost all DeFi protocols in order to put a DeFi flavor to the Alethio product suite. Having also worked on development and sales for the Codefi DeFi data API, he was in contact with all of the major protocol teams. Now he is part of Digital MOB taking the product owner responsibility to build DeFi products.

Dragos Rizescu - Dragos is responsible for product development at Digital MOB. His background is full stack developer with a passion for building highly scalable user interfaces. In the past 5 years Dragos has been at the forefront of web3 technologies. He co-founded Treum.io, a blockchain supply chain solution that brings transparency, traceability and tradability to highly valuable physical assets. As a developer, he was part of the core team to launch projects such as Gnosis and SingularDTV and has advised and supported multiple projects in the ecosystem, most notably Alethio. He worked with ConsenSys to support the enterprise arm of the company, being part of the development team to deliver the first non-financial Ethereum use case, a track and trace solution of rock samples for BHP and a solution for decentralized energy markets with BP.

2. Advisors/Technology Partners:

Aaron McDonald - Co-Founder and CEO Aaron is a 20 year tech industry veteran with experience leading teams across all aspects of a technology company managing portfolios over $1b in value. Aaron founded Centrality a leading $100m global venture studio supports a venture portfolio leveraging decentralised technology to create new market innovation and customer experiences. Aaron is a board member or advisor to more than a dozen venture companies around the world. In 2018 Aaron was awarded EY Entrepreneur of the Year for the technology and emerging industries category.

Atpar - the company behind ACTUS protocol -- whose goal is to provide the Ethereum community and the TradFi world with the tools necessary for fulfilling the vision of an open, interoperable and frictionless financial ecosystem. At its core, the ACTUS Protocol leverages the Algorithmic Contract Types Unified Standard (ACTUS) which is a formal representation of all kinds of financial contract types in terms of their financial obligations.

III.BarnBridge DAO mechanisms:

1. Tokenized Risk Protocol:

Barnbridge is the first tokenized risk protocol. Before the advent of smart contract technology, it was close to impossible to track & attribute yield to a divided allotment of capital, trustlessly & transparently, to provide hedges against any and all fluctuations. Conceptually, A person can build derivative products from any type of market driver fluctuation to hedge various risks, but are not limited to interest rate sensitivity, fluctuations in underlying market price, fluctuations in predictive market odds, fluctuations in default rates across mortgages, fluctuations in commodity prices, and a seemingly infinite number of market-based fluctuations to hedge a particular position. BarnBridge got inspired by this to create the first cross platform derivatives protocol for any and all fluctuations. To start, the team focused on yield sensitivity & market price. Downstream, they plan to introduce a far wider variety of hedges against fluctuations in the decentralized ecosystem. BarnBridge aims to be platform and assed agnostic.

A person can reduce the risk of digital assets & digital asset yield sensitivity by breaking them into essentially infinite, separate, dollar-denominated chunks, or tranches, and building derivatives off these tranches. BarnBridge 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.

2. Initial Product Offerings:

SMART $BONDS – Structured Market Adjusted Risk Tranches.

2.1. SMART Yield Bonds:

Interest rate volatility risk mitigation using debt-based derivatives. Currently, the decentralized financial system is primarily offering variable rate annuities. However, the ability to structure yield into fixed rates will come in the form of locked collateral with a maturity on repayments, or bonds, as well as fixed rate yields with no maturity, or annuities. From BarnBridge point of view, this latter can’t be a novel idea and these types of products will come to DeFi sooner or later. However, the types of derivatives & complexity reduction in financial planning that can be able to structure and implement with the existence of fixed yield in smart contracts will be mind blowing to traditional financial markets.

Decentralized financial instruments are showcasing the power that a trustless financial industry can wield. Powerhouse projects in the DeFi space like MakerDAO, Synthetix, AAVE, Compound, Curve and others are producing yields for users that have none of the constraints and rent seeking of tradFi instruments by replacing bookkeepers, escrow and various overhead with algorithms, trustless oracles, and decentralized ledgers. Different market driven yields can be found on numerous decentralized platforms, but there is nothing out there that services & pulls together all of the different decentralized protocols & allows for a normalized risk curve and derivatives for risk mitigation. Furthermore, efficiencies across lending protocols are non-existent in the current DeFi markets, and the ability to pull yield from numerous protocols and tranche them into higher and lower yield buckets is something that exists in traditional financial markets but is more efficient in decentralized financial markets, assuming an acceptable level of liquidity.

According the BarnBridge team the first structuring will not only allow DeFi users to get access to fixed yield but also pools yield from numerous protocols across the ecosystem creating a more efficient market, again, smoothing out the yield curve across the entire industry. By algorithmically pooling interest generating digital assets on a number of lending platforms, BarnBridge is able to create greater efficiencies by spreading risk & normalizing the industry risk curve and since BarnBridge does not lend money directly off a native platform, and instead pools lending across the industry, it allows us to be platform agnostic and digital asset agnostic which in turn will allow for more complex structing and bond rating systems downstream.

Risk and Loss Scenarios:

Pooled collateral would be deposited into lending protocols or yield generating contracts, and the yield will be bundled into different tranches and tokenized. So, you could buy exposure to the most senior tranche and get a lower yield but have a much lower risk profile. SMART bonds are a way to buy and sell risk on yield with all of the pricing driven purely by the market.

2.2. SMART Alpha Bonds:

Market Price Exposure Risk Mitigation using tranched volatility derivatives. The SMART Alpha bonds will not be structured via traditional yield tranches but instead with various levels of market price exposure, which we will call risk ramps. The idea is that every bucket or tranche of price exposure does not need to be flat across the entire risk curve, meaning the first $100 of price exposure doesnot need to deserve the same upside and downside volatility. This is similar to having fractional ownership but with different risk/reward for the fractions. For example, if the current price of 1 ETH is expected to be $1000, and moves to $900, the first tranche (the riskiest tranches) takes a higher percentage of the loss. Conversely, if the current price of 1 ETH is expected to be $1000, and moves to $1100, the first tranche (the riskiest tranches) takes a higher percentage of the gain.

How these gains and losses are measured and allocated across tranches can be done algorithmically with smart contracts, where each tranche can be traded as a unique digital asset. For example, jETH (a junior tranche of ETH price exposure), mETH (a mezzanine tranche of ETH price exposure), and sETH (a senior tranche of ETH price exposure). The tranches will exist as risk ramps in which users of various risk appetites can gain price exposure to digital assets. Furthermore, The SMART Alpha product will make way to build tranches of single asset and multi-asset pools that generate yield and where lower risk ramps get lower returns when the underlying assets rise and lower losses when they drop. However, we can build this without needing yield attached at all. The opportunity for downstream opportunities to use various risk ramps for differing collateral obligations is a logical progression these risk ramp will create.

2.3. UI/UX Interface (Light):

2.4. UI/UX Interface (Dark):

3. Token - $BOND:

BOND is an ERC-20 token. It is used to stake in the system, and as a governance token when the governance module is launched. As it conforms to the ERC-20 standard, the $BOND token is tradeable on any exchange and storable on any wallet – allowing anyone in the world to access it.

3.1. Distribution:

The distribution breakdown is designed to facilitate the most decentralized protocol and make sure power doesn’t reside in the hands of a few.

3.1.1. Fair Vesting:

The vesting schedule is designed so that there is not a giant cliff waiting over users heads at a specific point. The tokens allocated to the Founders, Seed Investors, and Advisors are locked in a smart contract that releases the tokens on a weekly basis over a. two-year period. The vesting period starts with the launch of the Yield Farming mechanism. This breaks down as such:

- Total amount of $BOND tokens: 10,000,000.

- Percent of $BOND tokens allocated to Founders, Seed Investors, and Advisors: 22%.

- Total amount of $BOND tokens vested: 2,200,000.

- Length of vesting: 100 weeks.

- Release schedule: 1 week.

- Amount of $BOND tokens released each week: 22,000.

- Percent of $BOND tokens released each week: 0.22%.

3.2. Governance:

The $BOND token is the system’s governance token, empowering $BOND holders to vote on updates to the platform. Combining governance mechanisms and incentivizing holders, it serves as a means to align the different stakeholders in the system. $BOND also serve as a security and policy management medium. Decentralized, automated governance, that incentivizes participants and aims for security, sustainability, and participant welfare is key to a DeFi protocol’s success.

3.2.1. DAO First Approach:

BarnBridge is taking a “DAO First Approach” to spinning up the protocol, choosing to use decentralized tools from the start to achieve the team final goal of complete decentralization and having a flexible smart contract system able to add / upgrade / remove functionality all based on DAO proposals. In addition to that, BarnBridge launched an incubator DAO called Launch DAO with the final protocol DAO known as “BarnBridge DAO”.

- Launch DAO:

Starting with Launch DAO, the Founders, Seeders, and Advisors an Aragon DAO Company Template which uses transferable tokens to represent ownership stake. Decisions are made based on stake-weighted voting and the Launch DAO took $BBVOTE token as a native token, which is divided as follow: The Founders receive 45%, Seeders receive 45%, and Advisors get 10%. From the other side the support is set to 62%, which means more that 62% of the voting shares need to be present at a vote. The minimum is set to 62%, meaning for a proposal to be passed it must be approved by at least 62%.

The funds from the seeders and the initial supply of the $BOND token is kept in the Launch DAO treasury. Launch DAO also has Aragon Agent activated and possible integrations for Uniswap pool allocation and Balancer pool allocation control situated within the DAO.

- BarnBridge DAO:

BarnBridge DAO is the DAO controlled by the $BOND community. The BarnBridge DAO has full control over the protocol and the features that are built into it. This is accomplished through the use of the Diamond Standard (EIP-2535), which allows us to upgrade the protocol without having all the members remove their tokens and switch to a version 2 of the protocol that time arises. The BarnBridge DAO also has a full control over the Diamond which provides amazing flexibility in the WEB3 space.

IV.SquadDAO:

Along the road BarnBridge team came across developing a BOT for Discord platform to be used as a DAOs management utility, below we provide a brief overview of this BOT along its various usages.

As DeFi grows and evolves, more and more DAOs are putting out bounty and grant programs to get some help and involvement from the community members. However, when it comes to practice, there is no clear flow for contributors to organise themselves into teams and manage the granted funds efficiently, and since BarnBridge the team behind SquadDAO has a lot of plans for the grants and bounties, they realised that there is no good for the community members to work through for this reason particulary they decided to create SquadDAO.

SquadDAO uses Discord as a reputation system that allows people to connect with others and lets them easily communicate. From the other hand, Gnosis Safe Multisig helps teams manage their funds since it has a beautiful UI & UX. Despite that SquadDAO was developed by and for BarnBridge, the team haven’t used the BarnBridge branding on it because they wanted to give it out to the whole DeFi community. It is completely open-source and permissionless so any project team is free to take and use it.