Editorial (or Lack Thereof)
This week’s BarnBurner will be cut short as yours truly is on the road (though not in Miami for Bitcoin 2021, unfortunately). I’ve provided updates regarding BarnBridge governance and key metrics below. The main highlights this past week were:
Touching $150M in total value locked within SMART Yield
Crossing $1M in fee revenues earned, and now nearing $1.2M
Also note, the following projects have recently integrated the BOND governance token:
Universe.XYZ is conducting a 20-week yield farming period to distribute its XYZ governance token; BOND is one of the acceptable forms of collateral
Unit Protocol, the project behind the $USDP stablecoin, has allocated $500K in minting capacity for BOND at a 25% collateral factor
Have a great weekend,
Governance
The Integrations Team delivered their first major project this week with the completion of BarnBridge developer documentation and corresponding updates to our GitHub markdowns. This will facilitate easier cooperation with other projects looking to build on BarnBridge, and hopefully will further improve our DeFi Safety rating. We provided more details in this blog post.
As we move forward with deploying DAO resources for the seeding of the BOND/BNT Bancor pool, as well as covering the quarterly salaries for appointed community members, we’ll be implementing segregated multisig wallets and public reporting for the community to follow along.
Key Metrics
With Aave and C.R.E.A.M. Finance junior tranche subsidies activated, SMART Yield TVL surged to new highs, briefly flirting with the $150M mark. From DeFiLlama:
Our Dune Analytics dashboard doesn’t yet reflect non-cUSDC originators, nor does DeFi Pulse. We’re currently working on updating both.
In lieu of those views, some comments on the current status of SMART Yield TVL (i.e., 99% junior tranche positions):
Adverse Market Conditions Persist: Lending rates for stablecoins currently sit around 2-3% in the wake of May’s mass deleveraging. While SMART Yield boasts enough liquidity now to support nine-figures worth of senior bonds, it is unlikely that any user will find these rates compelling enough to mint. As risk taking returns to the market, one can expect rates to increase going forward.
Insurance Coverage is Coming: A primary concern for prospective SMART Yield users has been the lack of deposit insurance. We now anticipate that Nexus Mutual, Bridge Mutual, and Risk Harbor all will be supporting coverage for BarnBridge in due course. Additionally, we’re speaking with Ante Finance, a new project looking to build markets for persistent on-chain smart contract testing. With these host of providers, we expect BarnBridge products will become more amenable to a wide variety of prospective users.
Senior Secondary Liquidity: In addition to insurance, the other concern raised by prospective users has been secondary liquidity for senior bonds. We’re officially moving forward with a solution that will allow users to access a highly liquid secondary market for their senior bond, regardless of variability between different bonds. I’ve dropped hints throughout some of the corners of our Discord chat, but that’s all for now - rest assured, we’re working as fast as possible on building it out.
Disclaimer: BarnBurner is not an official BarnBridge publication and is not meant to reflect the shared views of its core team or BOND token holders. BarnBurner is an educational weekly newsletter meant to share updates on technical and governance-related happenings that occur within the BarnBridge ecosystem. The content herein is not financial advice and readers should not base any investment decisions off of it.
Thanks to Zach Owens for his branding work 🤝