B.Protocol

Lending

B.Protocol is a backstop liquidity protocol that aims to provide better stability and unlock higher efficiency for DeFi lending platforms.

Risk Rating
Average
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
B.Protocol acts as backstop liquidity for DeFi to provide better stability and unlock greater capital efficiency for lending protocols by automating liquidations.
What we like less
Relatively limited adoption as B.Protocol is only operating across four lending platforms at the moment.
What it means for you
Offers you a passive and automated way to earn USD yield and liquidation gains by providing funds to Backstop pools.
Information
Exploit/Hacks
None
Info
  • Website
  • Token: BPRO
  • Tags: Lending
Key Metrics
  • TVL: $19.9M (Rank #112)
  • TVL Ranking by Lending: #20
  • Blockchain: Ethereum, Fantom, Arbitrum, Polygon
  • Chain TVL
    • Ethereum: $19.79M
    • Fantom: $68.38K
    • Arbitrum: $11.36K
    • Polygon: $98.97
Risk Assessment
Average
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 in 2021; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 10% by total value locked reduces risk
  • Requires members of a DAO to vote on-chain for approving contract upgrades
  • Timelock is at least 48hrs, which provides users with sufficient time to exit if any malicious upgrades are approved
  • Low voting power concentration reduces risk
Protocol Design
  • No death spiral concerns
  • Robust controls to mitigate oracle price manipulation
  • This protocol is susceptible to risks related to yield optimizers which deploy custom strategies to automatically manage user funds
Things to know about B.Protocol

How B.Protocol works

B.Protocol works by pooling user funds into Backstop pools. This liquidity is used for liquidations as they occur on the integrated DeFi platform. While the funds are sitting idle waiting to be deployed for liquidations, they accrue either interest or liquidity mining rewards. When a liquidation takes place, the Backstop AMM (B.AMM) smart contract pulls the required funds from the Backstop pool to facilitate the liquidation and automatically puts the collateral for sale. Once the collateral is sold, the profits are then redeposited back into the Backstop pool.

How B.Protocol makes money

Currently, the protocol's users receive bScores based on their usage of the platform. This score is a way for B.Protocol to calculate a user's part in the liquidation proceeds of the lending platform. bScores are registered on the blockchain but are not transferrable, and the liquidation proceeds and future governance votes will be based on the user's bScore. The different monetization capabilities are still being assessed and will be discussed via governance in the future.

How you make money on B.Protocol

You can deposit stablecoins into B.Protocol to backstop liquidity for Liquity or Vesta Finance to earn liquidation gains and protocol incentives. The protocol automates the selling of accumulated liquidations gains back to the underlying stablecoin every time a liquidation takes place.