BarnBridge

Yield Aggregator

BarnBridge is a fixed-income protocol that allows users to earn fixed-rate yield by swapping with variable yield from money markets.

Risk Rating
Watch Out
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
BarnBridge allows users to earn a fixed yield on their crypto assets. The protocol is also expanding to Arbitrum soon which will significantly lower gas fees for users.
What we like less
The advertised fixed yield can be deceiving if more users deposit into the pool to dilute current liquidity providers (LPs).
What it means for you
Offers you a great way to earn more reliable fixed interest rates that are not prone to fluctuations from supply and demand.
Information
Exploit/Hacks
None
Info
  • Website
  • Token: BOND
  • Tags: Yield Aggregator
Key Metrics
  • TVL: $656.8K (Rank #183)
  • TVL Ranking by Yield Aggregator: #14
  • Blockchain: Ethereum, Optimism, Polygon, Avalanche, Binance, Arbitrum
  • Chain TVL
    • Ethereum: $533.86K
    • Optimism: $122.93K
    • Polygon: $19.99K
    • Avalanche: $348.4
    • Binance: $64.24
    • Others: $0
Risk Assessment
Watch Out
Protocol Code Quality
  • Code not reviewed by any experienced auditors
  • Public team promotes accountability
  • No documented protocol hacks since launch
Protocol Maturity
  • Core protocol launched recently in 2022; maturity less than three months increases technical risk as smart contracts are not battle-tested
  • Bottom 80% by total value locked increases risk
  • Requires members of a DAO to vote on-chain for approving contract upgrades
  • Low voting power concentration reduces risk
Protocol Design
  • No death spiral concerns
  • This protocol is susceptible to risks related to yield optimizers which deploy custom strategies to automatically manage user funds
Things to know about BarnBridge

How BarnBridge works

BarnBridge is a decentralized protocol that allows users to earn fixed yields on their deposits. Users can open a fixed income position before the start of an epoch (30 days at launch) and claim their fixed yields when it ends. BarnBridge V2 pools implemented this epoch-based approach where users lock up their assets for a fixed period in order to earn a fixed interest rate. Every pool in V2 goes through three different phases: deposit, withdrawal, and epoch. The deposit period is the phase in which users are allowed to deposit assets into the pool. The pool stays in this phase until the withdrawal period starts. Each new deposit that's added during the deposit period lowers the fixed rate; users are allowed to withdraw their deposits if they deem the fixed rate to be too low. The withdrawal phase follows the deposit period. During this phase, new deposits are halted, and users are also allowed to withdraw their funds from the pool in case the final yield is too low. As users withdraw their funds, the advertised fixed rate will go up for the remaining depositors in the pool. The epoch running phase starts once the user deposits have been redeposited into third-party DeFi platforms (Aave, Compound) to earn yield. During this phase, no deposits or withdrawals are allowed to/from the pool. The pool also accepts deposits into the following epoch during this period. After the epoch is over, users can withdraw their deposits and profits. BarnBridge is able to offer fixed yield by swapping the variable yield earned from money markets with fixed yields for its users. This mechanism pushes forward the earned cumulative yield on the last epoch's deposits into the next epoch going forward. This is similar to a senior/junior structure where users take senior side to earn a fixed yield while the BarnBridge DAO acts as the junior side.

How BarnBridge makes money

The protocol doesn't earn any yield from its deposits. It only earns a funding rate that is set by the DAO.

How you make money on BarnBridge

You can deposit assets on BarnBridge V2 to earn a fixed yield rate. BarnBridge plans on released BOND staking to receive xBOND, which can potentially accrue fee revenue from the platform.