BONDETH
Bonded Finance / Ethereum
crypto

BarnBridge is a risk tokenization protocol. Its applications allow users to hedge factors such as yield sensitivity or asset price volatility by tokenizing various levels of risk exposure to a given underlying liquidity pool. These tokenized positions, referred to as either senior or junior tranches, are then as liquid as any other ERC-721 or ERC-20 token, respectively. BarnBridge applications provide scalable methods for tokenizing risk throughout decentralized finance. They allow for users to enter liquidity pools and calibrate their risk exposure via fixed and variable outcome tokens that can be enforced via smart contracts and which are liquid across other DeFi platforms. One of these applications, SMART Yield, has already launched, while two others, SMART Exposure and SMART Alpha, will be live by summer of 2021. SMART Yield (SY): SMART Yield allows users to tranche out the yield from the debt pools of other projects, such as Aave or Compound, to normalize the risk curve by creating derivatives for risk mitigation. It aggregates user deposits into these underlying money markets and allocates the yield generated on the sum between different risk profiles which are referred to as tranches. SMART stands for: Structured Market Adjusted Risk Tranches. SMART Yield senior tranches are represented by ERC-721 non-fungible tokens (NFTs), called senior bonds (sBonds). Senior bonds are minted (created) each time the user deposits into the pool. SMART Yield junior tranches are represented by ERC-20 fungible tokens, called junior tokens (jTokens). Junior tokens are minted each time the user purchases them at a current conversion rate using the BarnBridge app.