Beefy.Finance Rolls Out bDollar Vaults

The cows at Beefy.Finance have gone mad! The teams foot never comes off the gas, releasing a set of new vaults containing LP pairs from the latest algorithmic stable coin, bDollar.

By
Goon Trades
on
January 10, 2021
Category:
Project Insight

bDollar Vaults

Beefy.Finance is keeping its foot on the gas, releasing a set of new vaults. These vaults contain LP pairs from the algorithmic stable coin BDO. The team’s latest vaults boast enormous yields, granting users upwards of 4.0% daily on specific strategies.

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As displayed in the above snippet, current yields on sBDO farming is in the millions, for the “stable” coin pool (BDO-BUSD) and into the billions for the bDollar Shares liquidity pool (sBDO-BUSD). For users to earn these yields they must provide liquidity for the respective tokens on PancakeSwap.


Slow Down! What is bDollar?

bDollar is an algorithmic stable coin fork of the native Ethereum dAPP Basis Cash. This type of algorithmic stable coin incorporates three tokens that leverage seignorage to stabilize one of the tokens’ prices.

bDollar leverages the following tokens:

           --BDO (the algorithmic stablecoin)

            --bDollar Shares (or sBDO, which holders can claim BDO inflation when the network expands)

           --bDollar Bonds (or bBDO, which can be purchased at a discount rate when the network is in contraction                   and can be redeemed for BDO when BDO surpasses its $1 peg

Algorithmic Stables?

Algorithmic stable coins are unlike the two other types of stable coins, Fiat-Collateralized and Crypto Collateralized. Algorithmic stable coins rely on an algorithm to recognize specific parameters, where it will then adjust the supply to reach its peg price accordingly. As previously mentioned bDollar innovative model leverages seigniorage to keep the price pegged.

Seigniorage is defined as the difference between the real value versus the cost of producing it, typically for currencies. These algorithmic tokens create positive seigniorage, which makes an economic profit, allowing for users to profit. The system revolves around three tokens, the stable coin, a bond, and a share. The bond and the share tokens are used to adjust the supply to reach the asset's peg price.

To understand the entire mechanics of algorithmic stable coins, check out the bDollar medium.


Concluding Thoughts

The Beefy.Finance team has been leading the pack for all yield optimizers on the BSC. The team remains persistent, developing and expanding their offered strategies. If there’s one thing that goes a long way in crypto, its got to be developing speed. Beefy.Finance has continuously displayed just this, through its rapid innovation, continually deploying the latest BSC vaults.

As for bDollar, algorithmics stable coins are highly speculative considering they have no real collateral backing up the peg. Instead, the system relies on a three token system to stabilize the price. This model is very innovative and relatively novel to the crypto space, meaning it carries an enormous risk.

For those who wish to learn more about algorithmic stable coins I highly recommend the sources below:

Basis Cash

Bdollar 

BoxMining Stablecoin Guide


It is vital to proceed with caution when purchasing tokens that have just been listed. For those who have not already read our articles on safety in the BSC it is crucial to reference the following items, HERE and HERE.

None of our articles are advice at the end of the day, and all financial decisions should be made on your own behalf or from a professional financial advisor.


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Goon Trades

Greg (GoonTrades) is BSC News' Chief Editor and is also a writer for the team. Currently enrolled as an economics major, he finds himself as a cryptocurrency researcher, writer, and technical trader.