Hundred Finance Launches B.Protocol on Fantom
Hundred Finance is pleased to announce the launch of the latest iteration of its partnership with B.Protocol, a multi-collateral-enabled deployment of its Backstop Automated Market Maker (B.AMM) product on the Fantom Blockchain!
Provisioned with capital added to an incentivized pool of the Hundred Finance platform, the service allows efficient and democratic liquidations to be carried out on positions backed by multiple asset types, all without the need for complex flash bot integrations or on-chain gas wars. Instead, our Fantom community is now able to contribute funds in return for the proceeds of liquidations, plus an initial 4-week HND reward program. This is an invaluable service that helps maintain protocol health while simultaneously providing a means of returning value extracted through liquidations to the community.
B.Protocol: An Introduction
Liquidations are one of the core functionalities of lending platforms. B.Protocol’s Backstop, a fully autonomous smart contract that can efficiently and transparently handle liquidations of big debt with smaller capital requirements, is optimized to serve this market. Thanks to their innovative system, users are able to deposit assets into the backstop pool, and these funds can then be used to repay the debt of any position for which liquidation is necessary in return for its (discounted) collateral.
At present, the current B.AMM implementations contain over $100m USD in user deposits, and have fully demonstrated the technology’s ability by handling liquidations for projects such as Liquity Protocol and our own Hundred Finance.
In the current design, a lending platform like Hundred Finance requires a different backstop to each of its collateral types. In the new Fantom implementation, this has been altered to permit multi-collateral stable swaps so that positions held in multiple collateral types can be liquidated and better serve the range of assets offered by our lending protocol. At the core of this new iteration of the Backstop is B.Protocol’s Multi-collateral stable swap invariant. For more information on this innovation, check out their blog post.
Implementation and Deployment
B.Protocol has been implemented with the extended invariant and support for any ERC20 collateral. The code has also been made open source and is available at their github here. What is more, the implementation has been audited and no major were found.
The Backstop has been deployed on Fantom to cover USDC and DAI debts (with each debt a separate backstop pool), with MIM, BTC, Spell, DAI, USDC and YFI collateral types enabled for liquidation. In order to support future collateral listings and changes in price feeds, an admin contract that is co-owned by Hundred Finance and the B.Protocol admins has been set up. This allows for the listing and delisting of collateral if and only if both parties agree. Furthermore, new collateral types will be added only after a timelock of two weeks.
Integrating B.Protocol with Hundred Finance
The Fantom version of our B.Protocol backstop pools allows for the deposit of USDC and DAI tokens. By navigating to Hundred Finance and selecting the Fantom network, users can now observe that qualifying tokens feature the B.Protocol against the icon used to designate HND incentivized pools.
Selecting one of these two assets will then open the deposit interface featuring a Backstop tab. This tab can be used to approve the relevant token, make deposits and withdrawals, as well as observe total value locked and the APR for added liquidity. This APR is provided through HND token rewards, which are to be set at 5k HND per week split across the USDC and DAI pools, meaning 2500 HND per pool. This emission rate, owing to it being designed to achieve an adequate TVL to efficiently carry out liquidations, will be subject to adjustment.
For users of B.Protocol, our branding maintains its prominent placement in the Backstop section of the application. Visitors to the site are able to navigate directly to Hundred Finance using the link, from where they can themselves contribute liquidity to the initiative.
Conclusion
The continued progress of Hundred Finance’s collaboration with B.Protocol maintains our ongoing effort to create the most secure lending platform in the DeFi ecosystem. By allowing anyone with the necessary assets to contribute to its security, we further decentralize the protocol and better strive to meet the ideals of the cryptocurrency space. We envisage ourselves delivering these services wherever possible, and look forward to the further developments coming out of our partnership with B.Protocol.
