overview
The advent of decentralized finance (DeFi) will fundamentally change the world of financial products and services. Combinability, perhaps DeFi's biggest innovation, will improve efficiency and asset utilization in ways we're only just beginning to discover.
Burrow is a platform built on NEAR that was born to optimize and improve asset efficiency.
Highlights of Burrow
The first wave of DeFi apps allowed users to turn their underlying assets into interest-bearing assets, whether by lending in Aave or Compound and receiving aDAI/cDAI or staking assets in Lido and receiving stETH.
The second wave will make the most of these yielding assets, creating collateral through staking.
To optimize capital use, the Burrow.cash team is excited to introduce an interest rate market protocol built on top of the NEAR Protocol that allows users to offer and borrow interest-bearing assets ( interest-bearing assets)
Features of Burrow
Unlock profits from the base layer
Unlock profits on blockchains
Self-pay loans allowed
Unlock profits from the base layer
Thanks to the use of PoS (proof of stake) and the ability to staking for interest, staking on the platform generates a risk-free source of interest. Along with the ability to combine, users do not need to choose between the profitability of the base layer and the rate of other DeFi.
Staking derivatives like Lido, Marinade, and Metapool are unlocking base layer returns and allowing users to maximize their profits while continuing to secure staking for the base layer blockchain.
Like Metapool for example, users can deposit stNEAR, earn ~11% interest per year and then borrow back. Over time, Burrow will add more collateral types, including stETH, stSOL, stFTM, and more.
Initial support of these assets:
stNEAR
stETH(wrapped)
Assets in the plan to support:
bLuna
stSOL
Unlocking Profits on Blockchains
With the explosion of multi-chain protocols such as AAVE, Sushi, Curve and many incentive programs (incentives programs), and the incentives of Layer 1, the opportunity to profit is extremely large and also very competitive. painting.
Fortunately for users, they really don't have to choose between Aave on Ethereum and an ABC platform on NEAR. Through the design of Rainbow Bridge, users will soon be able to earn profits on Ethereum, BSC, Polygon and more, while still earning profits on NEAR through that ABC platform.
Rainbow Bridge works by locking tokens on the Etheruem/BSC/Polygon side, then minting an equivalent number of tokens on the NEAR side, similar to how other bridges work.
These locked tokens can be used in interest-gathering protocols, while their equivalent tokens are used in XX. Tokens can be redeemed when the user returns the asset over the bridge (with interest), thereby providing minimal risk.
Self-paying Loans allowed
As demonstrated by Alchemix, interest-bearing mortgage-backed loans can pay their own interest over time if the asset appreciates. Burrow believes extending this concept to a generalized lending platform is the next step in development.
Imagine you borrow 100 USDC using $1000 worth of stNEAR collateral. Assuming price fluctuations cause stNEAR to rise, the loan will pay off on its own in less than a year. Essentially, this equates to borrowing against future returns.
Token Burrow
Currently the project is still under development, so there is no token yet, GFS Blockchain will notify you when there is a new update.
Project Roadmap
It is expected that Burrow will launch the beta version at the end of October 2021, then the mainnet a few weeks later. The mainnet is expected to be completed in November or December 2021.
Follow the project on Twitter for the latest updates: https://twitter.com/burrowcash
Telegram: https://t.me/burrowcash