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B.Protocol is a backstop protocol, governed and owned by $BPRO holders. Users of the protocol have access to all the benefits of MakerDAO and Compound (soon Aave and other DeFi lending platforms), with the additional benefit of sharing liquidation proceeds according to proportional usage of the protocol. B.Protocol brings the Backstop, a best practice tool used in TradFi and in crypto centralized systems, to handle liquidations in DeFi. The project was launched in October 2020 on top of MakerDAO and later also integrated with Compound. B.Protocol is a non-custodial solution, keeping users in full control over their funds.
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What is B.Protocol and how does it work?
B.Protocol is a DeFi liquidity protocol that is governed and owned by $BPRO holders. It aims to provide better stability and higher capital efficiency in the DeFi ecosystem. By democratizing liquidation systems, B.Protocol shifts MEV and bots' profits to the community.
Users' funds are pooled into Backstop pools, which are used for liquidations on integrated platforms. While the funds are waiting for liquidation, they can earn interest rates or liquidity mining rewards, generating passive revenue for the Backstoppers - users who provide liquidity to the Backstop pools.
When a liquidation occurs, the Backstop AMM (B.AMM) smart contract utilizes the necessary funds from the backstop to facilitate the liquidation and automatically sells the seized collateral. The proceeds from the sale are then deposited back into the backstop pool, generating profits.
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