Belt Finance is offering Automated Market Making for stable coin and same value assets on the Binance Smart Chain. The advantage for liquidity providers of Belt Finance is that they do not need to fear impermanent loss since the relative value of the stable coins or same price assets is very stable.
Users who want to obtain yields from Belt Finance can allocate their tokens towards the belt.fi liquidity pools. In exchange they will receive bTokens which confirm that you provided liquidity for a certain token on Belt Finance.
You can imagine liquidity pools as tokens that are locked in a smart contract. While the stable coins are locked in liquidity pools to facilitate the exchange of tokens the liquidity pools are also used for lending across other protocols on the Binance Smart Chain. Therefore liquidity providers get additional interests on top of the trading fees collected by the protocol. This will lead to an increase in the value of the bTokens. The bTokens themselves are BEP-20 tokens and can be traded just as any other asset on the BSC.
Belt Finance is trying to maximize the yields of the users through using a variety of vaults available on the BSC.
Belt Finance currently supports the following stable coins on their platform:
- BUSD
- DAI
- USDC
- USDT
Users who want to use the protocol for exchanging stable coins on the BSC benefit from low trading fees and a very low slippage.
On top of stable coins that are tracking the performance of USD Belt Finance also intends to offer the protocol for other assets that are tracking the same price. There are a number of assets that track the price of Bitcoin such as BTCB, renBTC and WBTC. By building liquidity pools for these tokens Belt Finance contributes to the price stabilization of these assets on the BSC and enables liquidity providers to obtain profits without fearing impermanent loss.
Belt Finance is essentially offering on BSC what Curve Finance is providing on Ethereum. Curve Finance is a decentralized stable coin exchange built on Ethereum and supports all the major stable coins that exist on Ethereum. The contracts that Belt Finance uses are forked from Yearn Finance, Curve Finance and Pickle Finance. Security Audits are currently conducted.
Belt Finance is planning to expand the belt.fi protocol and offer support for cross-chain liquidity pools on other blockchains such as Ethereum. The development of the Belt Finance protocol is supported by Ozys, a blockchain technology company and developer of the Orbit Chain.
Token Economics
The native token of the Belt Finance protocol is called $BELT. The token serves as a governance token and it is used to incentivize the usage of the Belt Finance ecosystem.
The $BELT token is inflationary but comes with a deflationary mechanism. Transaction and yield based fees are collected and used to buy back and subsequently burn the $BELT token.
200,000 BELT tokens have been pre-minted so far. Out of these 150,000 tokens will be sold in the course of an IFO on PancakeSwap.
IFO (Initial Farm Offering)
The $BELT token will be offered in an initial farm offering on PancakeSwap. In order to participate in the IFO you need to acquire CAKE and BNB tokens and use them to add liquidity to the CAKE-BNB pair on PancakeSwap. In exchange you will obtain CAKE-BNB LP tokens which you can use to commit on https://pancakeswap.finance/ifo. Make sure you commit your LP tokens on Wednesday, March 10 between 5 pm and 6 pm SGT (Singapore Time). After the farming window is closed you can claim your $BELT tokens.
During the IFO the $BELT tokens will be sold for approximately $20 per token. The final price will be communicated briefly before the IFO starts. The fundraising target is 3 million USD. In case more CAKE-BNB LP tokens will be staked than BELT tokens can be allocated the remaining LP tokens will be allocated back to the investors.