The introduction of decentralized finance (DeFi) will profoundly alter the landscape of financial products and services. Combinability, possibly DeFi’s most significant innovation, will boost efficiency and asset utilization in ways we are only now beginning to understand.
So what is BurrowCash? Overview of BurrowCash lending and borrowing platform, let’s learn about the project with Nearity in this article!
What is BurrowCash
The BurrowCash project is a decentralized, unsupervised pool-based interest platform that allows users to give assets in exchange for interest and borrow against them in order to release liquidity. Burrow Cash’s structure is similar to that of Aave, Compound, and other pool-based protocols.
BurrowCash is built on the NEAR blockchain, a layer 1 Proof of Stake blockchain with a WebAssembly runtime. The Burrow protocol’s smart contracts are written in Rust.
BurrowCash’s goal is to free up liquidity for interest-bearing assets, particularly class 1 staking derivatives such as stNEAR and stETH. Burrow users will be able to deposit stNEAR as collateral before borrowing more NEAR Protocol to build a leveraged staking position or a stablecoin to create a self-repaying position.
Special features of the BurrowCash
The first wave of DeFi apps lets users convert their underlying assets into interest-bearing assets by lending in Aave or Compound and obtaining aDAI/cDAI or staking assets in Lido and receiving stETH.
The second wave will capitalize on these yielding assets by staking collateral.
The Burrowcash team is thrilled to launch an interest rate market protocol built on top of the NEAR Protocol that allows users to offer and borrow interest-bearing assets in order to maximize capital use (interest-bearing assets)
Presently, you can supply the following assets on Burrow. $LINEAR, $USDC, $STNEAR, $USDT, $wNEAR, $ETH, $DAI, $wBTC, $USN, $BRRR, $AURORA
Features of BurrowCash
- Borrow and lend
- Unlock profits from the base layer
- Unlock profits on blockchains
- Self-paying loans
Unlock profit from the base layer
Staking on the platform creates a risk-free source of income due to the use of PoS (Proof Of Stake) and the opportunity to stake for interest. Users do not have to pick between the profitability of the base layer and the rate of other DeFi in addition to the option to combine.
Staking derivatives such as Lido, Marinade, and Metapool are enabling users to maximize their income while still securing staking for the base layer blockchain.
Users, like Metapool, can deposit stNEAR, earn 11% interest each year, and then borrow it back. Burrow will gradually introduce additional collateral kinds, such as stETH, stSOL, stFTM, and others.
Initial support of these assets:
Assets in the plan to support:
Unlock profits on blockchains
With the growth of multi-chain protocols such as AAVE, Sushi, Curve, and numerous incentive programs (incentives programs), as well as the Layer 1 incentives, the chance to earn is enormous but also tremendously competitive. painting.
Users, fortunately, do not have to pick between Aave on Ethereum and an ABC platform on NEAR. Users will soon be able to profit on Ethereum, BSC, Polygon, and other platforms while still profiting on NEAR via the Rainbow Bridge concept.
Rainbow Bridge operates similarly to other bridges by locking tokens on the Etheruem/BSC/Polygon side and minting an equivalent number of tokens on the NEAR side.
These locked tokens can be used in interest-collecting protocols, while their equivalent tokens are used in XX. Tokens can be redeemed when users return assets across the bridge (with interest), thereby providing minimal risk.
Interest-bearing mortgage-backed loans, as illustrated by Alchemix, can pay their own interest over time if the asset appreciates. Burrow feels that the next step in development is to expand this notion to a generic loan platform.
Assume you borrow $100 USDC with $1000 in stNEAR collateral. If price volatility leads stNEAR to rise, the loan will be paid off in less than a year. This is essentially borrowing against future returns.
What is the BRRR token
Burrow’s native governance token is BRRR. The majority of the supply will be awarded to active Burrow users and members of the community.
Key Metrics of BRRR Token
- Token Name: BurrowCash
- Ticker: BRRR
- Blockchain: NEAR Protocol
- Token Standard: NEP-20
- Token type: Governance & Utility
- Total Supply: 1,000,000,000 $BRRR
Allocation BRRR Token
- 50% for the community
- 20% for DAO treasury
- 20% for the core team
- 10% for strategic investors
Token BRRR Use Case
- Stake BRRR to get interest
- Governance and Voting
Team, Partner, and Backer
Burrow raised $5 million from Dragonfly Capital, Jump, Aparafi Capital, Lemniscap, D Venture, QCP Capital, and DeFi Capital.
Burrow’s investor network will not only support initial liquidity but also share its expertise to build a stronger DeFi ecosystem on NEAR. In addition, the project is also directly supported by Proximity Labs – a company that invested $ 350 million to develop DeFi on NEAR.
Burrow is a significant and unique component of the NEAR ecology. Burrow, with the characteristics that I have, is a serious competitor to its two siblings, Aurigami and Bastion, while the project’s TVL is expanding rather nicely.
This project will have many more fascinating features in the future, so please remain connected to Nearity.