The Next Evolution of On-Chain Money Markets
Simplified Architecture Map
Currently, the on-chain landscape for lending and leverage is lacking in both accessibility and wide support of assets and strategies.
Blueberry is a decentralized, permissionless lending market at its core, which whitelists loan deployments that can sometimes be performed with greater than 100% LTV. Borrowers post collateral, then deploy their loan through the aggregated whitelist of strategies. Loans are non-custodial, meaning that neither the protocol nor the borrower are able to take control of the funds. Rather, the 3 components: Collateral, Loan, and Deployment, are wrapped into a “Position NFT” held by the bank that can be redeemed for its PnL should the borrower decide to close their position.
The Blueberry DAO acts as a decentralized risk management department of a bank, determining appropriate risk parameters such as LTV and Min/Max Positions based on the deployment of the loan. DAO contributors including contract development shops and top security firms work through governance to ensure loans are safe and liquidations can be performed profitably when necessary. By isolating risks based on the deployment, the protocol increases safety for both lenders and borrowers. It also allows the protocol to support a wider variety of assets and deployment strategies.