Blueberry Protocol
In the TradFi world, most loans are under-collateralised, as people borrow money they don't yet have.
DeFi on the contrary works on a system of over-collateralisation to ensure safety, Blueberry Protocol aims to bring back capital efficiency by letting users borrow up to 7x LTV.
Blueberry Protocol is:
a lending market that can work with any token.
Added leveraging functionality against your lending and borrowing, resulting in borrowing greater than 100% LTV (Loan-to-Value ratio).
Ability to use your loan to yield farm with single-sided pools.
So how can someone borrow 6x of their money?
A user posts collaterals and chooses what position wants to borrow. e.g 3x, 4x, 6x.
The bank holds the position and issues the user a receipt - as an NFT- allowing the user to claim the PnL of that position.
Ultimately borrowers don't hold the assets, but an NFT with the PnL, so they can't bankrupt the protocol. Then users can deploy the borrowed assets through a variety of whitelisted strategies.
To provide assets to borrowers, lenders are incentivised in organic ways by community-owned liquidity, instead of a market maker.
Liquidity Providers (LPs) deposit their tokens as collateral and borrow against their collateral, and use their loans to provide liquidity.
This system makes LPs suffer little impermanent loss and keep the price exposure of the token.
Lenders are often disincentivised because they want full upside exposure to the token they want to earn a yield on. BLBprotocol solves this incentivisation problem organically.
Thanks to this system, both lenders and borrowers are incentivised to use the protocol, and that's just the perfect recipe to make a good blueberry jam.
RWAs are clearly where DeFi is headed. Blueberry Protocol knows it and has hinted at the possibility of offering up to 50x on such assets. Be sure to follow them for some alpha.
BLBprotocol is on testnet at the moment, with plans to deploy on Ethereum mainnet and L2 soon. Go harvest some profits at testnet.blueberry.garden
This thread was originally published on March 10 2023.
Find more on Blueberry’s website and Twitter.
