🔍Concept Overview
The Next Evolution of On-Chain Money Markets
Last updated
The Next Evolution of On-Chain Money Markets
Last updated
Currently, the on-chain landscape for lending and leverage is lacking in both accessibility and wide support of assets and strategies.
Blueberry’s Key Components and Actors:
Lender: Individuals or entities who provide assets (such as ETH or USDC) to the Blueberry Bank. In exchange, they receive yield-bearing tokens called ibTokens, representing their share in the lending pool.
Blueberry Bank: The central hub where lending and borrowing occur. Lenders deposit assets into the bank, while borrowers (Traders or Yield Strategists) interact with it to obtain loans by providing collateral.
Trader or Yield Strategist: Borrowers who deposit collateral and select a position to borrow funds. They employ various strategies to generate returns using the borrowed capital. Upon borrowing, they receive a Position NFT representing their specific position, including the collateral and borrowed amount.
DAO (Decentralized Autonomous Organization): The governance body overseeing the Blueberry Protocol. It establishes risk parameters (e.g., LTV ratios) and determines the whitelisted assets and approved strategies within the protocol.
Position NFTs: Unique tokens representing a borrower's position, encompassing the collateral, borrowed assets, and chosen strategy. The Blueberry Bank mints and holds these NFTs. Borrowers can redeem their Position NFTs to claim the realized profit or loss when closing their positions.
Liquidation Bots: Automated systems monitoring borrowers' positions. If a position becomes undercollateralized and breaches the predefined risk thresholds, the liquidation bots are triggered to liquidate the position, ensuring the lenders' funds remain protected.
Protocol Flow:
Lenders deposit assets into the Blueberry Bank, receiving ibTokens proportional to their contribution.
Borrowers provide collateral and select a borrowing strategy, receiving a Position NFT unique to their position.
The DAO regularly reviews and adjusts risk parameters, whitelists assets, and approves strategies for use within the protocol.
Liquidation bots continuously monitor borrowers' positions. If a position becomes too risky, breaching the collateralization requirements, the bots automatically liquidate the position to safeguard the lenders' assets.
Borrowers can redeem their Position NFTs to claim the realized profit or loss when they choose to close their positions.
The Blueberry Protocol aims to create a secure, decentralized lending platform that optimizes capital efficiency and accommodates various borrowing strategies. The DAO's governance ensures the protocol remains robust and responsive to market conditions, while the liquidation bots act as an automated risk management system, protecting the interests of lenders.