Expand BPRO Utility Following the Abracadabra Model

An idea for utility expansion:

1.) Depositors in BPRO v2 stability pool receive a yield bearing token (ybtk) to symbolize their ownership % of a stability pool.

In this example call the yield bearing token ybtkBPRO.

2.) Create an over-collateralized US dollar pegged stable coin issuance mechanism similar to Abracadabra.

In this example call the stable coin usdBPRO

3.) Similar to Abracadabra, usdBPRO can be minted by depositing yield bearing tokens.

Since ybtkBPRO is a yield bearing token, it can also be used to mint usdBPRO.

Minters of usdBPRO pay an interest on their loan over time. (This interest rate should be fixed however there should be a way to increase this interest rate in event of a usdBPRO depeg)

usdBPRO can also be minted using blue chips such as ETH or WBTC.

4.) Similar to Abracadabra, the interest rate from stable coin issuance (lending) can be paid to vanilla BPRO token holders using a buyback mechanism

For example: if I own BPRO, I can stake it and receive xBPRO. xBPRO to BPRO ratio will change over time. (I’m not 100% sure how this part works but It’s the same model as SPELL and sSPELL.)

This gives BPRO token holders a staking mechanism and a way to share in the revenue.
It also allows ybtkBPRO holders to opt into the revenue sharing. If they don’t want to share liquidation revenue, they don’t have to mint usdBRPO. It’s optional.

5.) Since usdBPRO needs to be pegged 1:1 to the USD, we put a proposal on Curve to get whitelisted for receiving CRV incentives pooled with another established stablecoin. (say LUSD)

We use some treasury BPRO to bribe on Votium.

This serves to stabilizes the peg and also gives great advertisement to BProtocol in general. “Curve Wars” are arguably the biggest topic in defi currently and will generate interest about the protocol.

6.) Lastly, we create a decentralized backstop for usdBPRO liquidations. BPRO can provide a decentralized backstop for its own lending platform!

More details would need to be flushed out, but I think this would be an interesting way to massively expand this protocol!

Even just as a first step I think it would be interesting to create ybtkBPRO. It could be used as collateral for lending on other protocols and incentivize depositors. . .


I like the idea, its very similar to what @Strategista and I have discussed in the past.