The summer of 2020 will be forever remembered in the cryptocurrency space. It was the period when Decentralized Finance (DeFi) was born. DeFi was growing at tremendous rates and soon thereafter would fuel the narrative of the bull market that started to replace the cryptocurrency winter.
If you are new to DeFi and do not yet understand what it is all about then check out our beginner’s guide!
With the birth of this new industry new economic opportunities emerged on blockchain protocols. Suddenly people could provide liquidity to decentralized exchanges or start yield farming. Yearn Finance emerged on Ethereum as the most popular yield aggregator. It was a protocol that allowed ordinary users to participate in the yield farming hype without interacting with various protocols themselves.
As fees on Ethereum increased more and more ordinary people started to watch out for alternatives. Yield farming with small amounts was no longer possible since fees were accounting for a significant share of the profits that were to be obtained.
It turned out that the Binance Smart Chain (BSC) was a great alternative for exploring yield farming strategies.
Binance Smart Chain (BSC) explained:
- BSC is a blockchain that supports smart contract functionality just as Ethereum.
- All gas fees on the BSC are paid in the BNB token (the native ecosystem token of Binance).
- BSC combines Delegated Proof of Stake and Proof of Authority consensus mechanisms.
bEarn.Fi – Yield farming on various blockchains
bEarn.Fi is offering yield farming opportunities on the BSC. Among liquidity pairs it also offers to farm stable coins such as BUSD and bDollar.
bDollar explained:
- bDollar (BDO) is an algorithmic stable coin and part of the bEarn.Fi ecosystem.
- it is a native asset of the BSC (Binance Smart Chain).
- the stable coin has its own on-chain governance.
- it adjusts the supply of the token dynamically so that the target price is reached.
- the bDollar protocol features two more tokens: bBDO (bDollar bonds) and sBDO (bDollar shares). Those two tokens are used to stabilize the price of bDollar.
- users can farm bDollars at https://bdollar.fi/banks
- initially bDollars were distributed through an airdrop.
Furthermore, bEarn.Fi is a cross-chain auto yield farming protocol. This means that bEarn.Fi also supports farming on Ethereum besides the BSC. In November 2020 it launched a liquidity pool on Uniswap.
bEarn.Fi offers a variety of options to start yield farming on BSC. In order to interact with the blockchain users need to connect their wallets to the network. Currently Metamask and WalletConnect are supported.
In February 2021 there are currently more than 11 million USD locked in bEarn.Fi. As a comparison in YearnFinance there are around 500 million USD locked.
Products
The bEarn.Fi ecosystem currently offers the following products to its users:
- vaults: enabling users to obtain yields without interacting with DeFi protocols themselves
- bridging: cross transfer of assets between Ethereum and BSC
- insurance: against possible loss through smart contract exploitation
Token Economics
The native token of the bEarn.Fi ecosystem is called BFI. It serves as a governance token. Additionally it can be obtained as a farming reward.
Conclusion
bEarn.Fi is one of the early DeFi protocols on BSC. It shows that DeFi is slowly but steadily emerging as an industry beyond the Ethereum blockchain. The advantages are in lower fees and potentially very attractive yields that can be attained in the early days of the ecosystem.
