Dear Compound community,
B.Protocol is integrating with Compound and expected to go live in 6 weeks. We are presenting the project tomorrow in the Compound’s discord community dev call, and we would like to get your feedback and questions on the main points below.
What is B.Protocol
B.Protocol (bprotocol.org) is a backstop liquidation protocol, making DeFi lending platforms more stable and scalable with a professional liquidations system. It’s a new lego primitive bringing traditional finance systems best practices into DeFi, aiming to stabilize the ~$15b market of DeFi assets, crucially dependent on adequate liquidation processes, which till now were a missing piece in this growing ecosystem.
We incentivize liquidators (Keepers) to share 50% of their profits with the platform users in return for a certainty in the liquidation process (which is given via a smart contract). By that, we bring more committed liquidators to the platform and help to shift back miners extracted profits (aka MEV) to the users.
Or you can get the PoV of one of our liquidators here (posted today).
Our first integration went live a month ago over MakerDAO, and currently has 12.5k ETH locked (~$7.7m), with 2.8m DAI borrowed by 109 Vault owners.
How B.Protocol benefits Compound
- In the short term, Compound gets new big DeFi players as committed liquidators, who will help make it more stable.
- In the long run it will allow Compound to offer more attractive collateral factor and higher leverage for its users.
What Compound users get when using Compound via B.Protocol:
- Accumulate B.Protocol score.
- Get a share of the backstop liquidation proceeds according to their score.
- Users will be able to vote on future protocol updates.
Who is behind B.Protocol:
Yaron Velner (me), is the founder and CEO. Previously, I was Kyber Network’s CTO and a co-designer of the WBTC protocol among other things.
Jitendra Chittoda leads the smart contracts. He was previously the head of smart contracts at mStable, worked at Aave, and was an auditor himself in ChainSecurity.
Eitan Katchka leads the community and ecosystem development. Eitan started with decentralized communities and projects in early 2014 as one of the core team members of La’Zooz and has been involved in different blockchain and crypto projects since.
Questions to the community:
- Our long term goal is to hand over control of this integration to the Compound users. And we are exploring different ways on how to on-chain measure an activity on Compound, while preventing manipulations and with the technical limitations of being a wrapper atop Compound (and thus, e.g., we cannot simply track the user’s COMP accumulation).
- In addition to the coming integration, we plan to propose the Compound community to add a new collateral token cUSDC(2), which will allow USDC deposits, and will be secured by B.Protocol, and would allow x10 leverage. We would like to hear community feedback on what kind of guarantees they would require in order to approve such a new cToken.
We would like to ask the community to share any feedback and ask any questions regarding B.Protocol, whether here or on our Discord.
The current Compound integration code is already open-sourced on GitHub. It is still under development and will be sent for audit in 3 weeks.