what is bastion protocol BSTN token

Bastion Protocol is a Lending and Stableswap protocol built on Aurora, NEAR’s EVM-compatible layer. Let’s take a look at Bastion Protocol with Nearity by heading over the following detailed information.

What is Bastion Protocol?

Bastion Protocol is a decentralized lending and borrowing protocol on the Near protocol ecosystem, which algorithmically sets interest rates based on supply and demand. Compound-based protocol and built on Aurora, NEAR’s EVM-compatible layer.

Bastion’s vision is to be the liquidity center of the NEAR protocol ecosystem, where all assets are profitable and cToken can be combined to form the foundation of the ecosystem.

Currently, Bastion protocol has a TVL (Total Value Locked) amount of $ 616 million and is the leader in TVL volume on Aurora.

Tokennomic

Key Metrics

Ticker: BSTN.

Network: Aurora

Contract: Updating…

Token Standard: Updating…

Token Type: Utility, Governance.

Circulating Supply: Updating…

Total Supply: 5,000,000,000 BSTN.

Token Allocation

Liquidity mining: 30%

Treasury: 30%.

Team & Advisors: 25%.

Investors: 15%.

token distribution Bastion Protocol

Token use case

BSTN is the governance token of the Bastion Protocol. BSTN token is used as an incentive to stimulate borrowing demand and provide stability on initial deposit interest rates:

  • Vote on key parameters such as fee model, gauges, liquidity owned by the protocol, and staking in a decentralized way
  • Align incentives between Bastion stakeholders (lenders, borrowers, ecosystem partners, team)

Working mechanism of Bastion Protocol

  • cTokens (Collatereral Tokens) are collateral tokens just like LP tokens, they are basically tokens you get when you deposit other tokens into Bastion. cTokens are used to redeem the underlying tokens and accumulate interest over time.
  • cTokens accrue interest through their exchange rate – each cToken can be converted into an increasing amount of the underlying asset, even if the number of cTokens in your wallet remains constant.

When users deposit 5 main assets including ETH, NEAR, USDC, USDT, WBTC into Bastion protocol, they will receive cToken.
TVL of the above 5 types of assets has reached more than 480 million USD. And the volume of loaned assets has reached more than 38 million USD.

Bastion’s interest rate model

The interest rate is determined based on the utilization rate of the protocol, which is the percentage of the total borrowed assets relative to the total deposited assets on a particular market.
Interest rates increase as utilization rates increase. This self-balancing mechanism incentivizes people to deposit more assets to maintain the solvency of the protocol.

Borrowing limit

The loan limit refers to the maximum amount a user can borrow with the assets they currently have provided and collateralized. Liquidation occurs when a user’s borrowing position exceeds the loan limit (when loan utilization is > 100%).

Loan efficiency

Loan performance is a visual representation of the ratio between the total collateral to the total value of the borrowed asset or, in other words, the position that is about to be liquidated.
The less the usage rate, the more secure the user’s assets.

Improve the use of borrowed money

To improve Loan Usage, users can:
Refund part or all of the loan amount
More collateral

Liquidation

Liquidation occurs when a borrower’s borrowed assets exceed the “borrowing limit,” meaning the collateral does not cover the full amount borrowed under the collateral factors. In the event of a liquidation, the liquidator will seize available collateral from accounts that cross the liquidation threshold and execute market transactions to help repay the borrower, collecting a fee from the process. this.

Oracle

Bastion is integrated with Flux Protocol to provide a source of price data.
Initial price feeds being launched include ETH, NEAR, WBTC, AR, DAI, USDC, and USDT. Additionally, Bastion will leverage Flux in providing additional pricing feeds to support the future growth of Aurora.

How to earn and own BSTN token

Stake token pair BSTN – NEAR LP on Trisolaris.

Use the BSTN – NEAR token pair as collateral on Bastion.

Join the Bastion Protocol Lockdrop. This event has ended, but I will introduce this program to those of you who want to learn more.

Users will lock cUSDC, cUSDT, cNEAR, or cETH tokens for a period of 1 to 12 months to receive rewards in BSTN or NEAR tokens. The longer the token lock time, the more tokens you will receive.

what is lockdrop on bastion protocol

Users participating in the Lockdrop will earn rewards up to 8% of the total BSTN supply (equivalent to 400 million BSTN tokens) and 2 million USD NEAR, paid immediately after the lockdrop period, and get 100% of the locked amount back with interest accumulation.

Dapp Performance of Bastion protocol

17 thousand real users on Testnet

Nearly 26k followers on Twitter

Received the maximum grant from NEAR / Aurora

The first lending & borrowing platform on Aurora that integrates with Flux

Collaboration with Ref Finance, DODO, Flux Protocol, Trisolaris, Vaporwave Finance, NEARNauts, and Anti-Social Ape Club

Each chain has its own DeFi projects. Bastion is focused on being the leading lending protocol in Aurora.

Roadmap – Milestone

With the backing of the community, the team will continue to improve Bastion with an incredible roadmap that includes (in no particular order):

Time-based rewards: An innovative mechanism for long-term, tax-free funding without locking down users (a drawback of the existing veToken model)

Increase the reward: The reward is increased 2-3 times.

Analyze and report transaction history (e.g. historical APY) for lending markets

Isolated and free market

KPI options

On-chain governance

1 click on Zap

Interest rate algorithm over time

Profitable Collateral (LP token, stNEAR, etc.)

Upgrade oracles to list long-term content

Market to bid on liquidated products

Integration with other Aurora, DeFi protocols, DeFi x NFTs

Bastion just announced that their round was led by ParaFi Capital, with participation from Jane Street, Digital Currency Group, Crypto.com, CMS, and Manifold Trading.

Investor & Backer

Bastion announced that its round was led by ParaFi Capital, with participation from Jane Street, Digital Currency Group, Crypto.com, CMS, and Manifold Trading.

invetor of Bastion protocol

Besides, Bastion also has Angels Investors including Illia Polosukhin – Founder of NEAR, 0xMaki, Darren Lau, 0xRooter – Founder Solend, Jeffrey Kuan – Head Business Development at Terraform Labs, Nick Chong, 0xSami – Founder of Redacted Cartel, Peter Mitchell and Jasper De Gooijer – Co-Founders at Flux Protocol, Matt Lockyer, 0xSisyphus, Statelayer, Ayush Menon, Tristan Frizza, John Wang and Fomosaurus.

Promixy Labs also invested $2 million and the Bastion protocol. This amount will be used for allocation in the form of liquid mining rewards in the form of NEAR tokens and AURORA tokens.

Website | Twitter | Discord | Blog | Docs | Email

Conclusion

Thus, Nearity introduced you to the project and provided an overview of the Bastion protocol project built on Aurora/NEAR. What do you think about this project? Please share your opinion below to discuss with Nearity!

 

By admin

Leave a Reply

Your email address will not be published.