BIP #3 - Allocating BPRO to reward v2 native integrations

BIP #3 - Allocating BPRO to reward v2 native integrations

As the mission of B.Protocol is to become the backstop protocol for DeFi, the main growth vector is integrating with as many qualified lending and trading DeFi protocols which look to scale their liquidation system. Currently in B.Protocol v2, each integration consists of a unique liquidity pool that will be used for liquidations on the integrated platform. In order to incentivize early users to deposit into these pools, a liquidity mining program will be put in place that will include incentive rewards from both B.Protocol and the integrated protocol (where applicable), aiming to cover for approximately 10% APRs. With this allocation we estimate we can incentivise deposits of at least $10m into the different backstop pools, that can be used for up to $100m of liquidations.

We are happy to share that the team is discussing a few new native integrations for B.Protocol v2 and aiming to finalize the details in the coming weeks -

  • MakerDAO new Vault (passed MKR governance vote).
  • bZx (finalizing details).
  • Rari Capital’s Fuse/Market.xyz (finalizing details).
  • A few more platforms (to be announced soon).

For this purpose there is an initial (and quite immediate) need of allocating 200k BPRO that will be distributed to users who will deposit into the backstop pools of these new integrations (this is needed to finalize the incentive details of the joint LM programs). The distribution of the BPRO rewards to LPs will be made available to LPs only once the BPRO staking mechanism is in place.

Result if passed : Allocating 200k BPRO to a dedicated account under the control of the Multisig to be used as incentive rewards for new native integrations.

*For the full discussion over this proposal please check this thread -

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Since we are talking about 200k BPRO this should be specified more imo. I see the need/motivation behind it but missing some timeline.

Is there a timeframe on MKR-Integration yet? I am aware that the LoI-MIP got through but i expect that it will take 2-3 months from now at least to go live

Any intentions how you want to split it between integrations an especially if just a part of them are up and running? I welcome the intetion of providing the early user additional 10% yield.

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Each integration will have its own parameters according to the specific platform that is backstopped, so BPRO incentives/rewards for depositors will change in quantity accordingly so it’s hard to say in advance.

Also, we aim to have joint LM with the platforms themselves (where possible) so not all the rewards will come from BPRO.

But in general we believe that 200k BPRO will enable us to build a $5-10m backstop across the different integrations, that can backstop around $50-100m.

Hope this clarify things.

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Thanks yes. So you basically decide then later f.e. “40k bpro are used in combination with liquity for a timeperiode of 3 months” and substract these then from the pool of the mentioned 200k.

The target incentive should reach around 10% compared to not use BPRO-backstop

Did i understand this correctly?

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The LM rewards will be distributed to users who deposit funds into the backstop pool itself. Their funds will be used as the needed liquidity for the liquidations needed on the integrated platform.

To incentivise users to deposit their funds into the backstop pool we will have the LM.
So the 10% is not in comparison to the yield/APY on other pools in the integrated platform.

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What effect would have lengthening of the V2 LM program to 6 months?
Given that user funds in the v2 pool generate yield by default and the volatility of the BPRO token is quite uncertain how much value v2 users will receive.
If the goal is 10 million $ per integrated protocol (correct me if i am wrong), does it make sense to reward early users (up to 10m) with higher yields, and when the desired figure is reached to reduce yields?
Will stretching the LM program for a longer period of time have a more positive impact on new integrations?