On the second day of Barnbridge liquidity mining launch, locked assets are approaching nearly 200 million USD!

Even though decentralized finance (DeFi) has cooled off compared to the past two months, it doesn't seem to be fading away like ICOs did in 2018. The enthusiasm surrounding Barnbridge, a new Ethereum-based project, when it launched its liquidity mining program yesterday morning, is a prime example of this.

Risk Tokenization Protocol

Barnbridge is a risk tokenization protocol that allows DeFi users to hedge against the volatility of asset market prices in their investments and liquidity mining, as well as risks such as fluctuating interest rates provided by different creditors. According to the official statement, the project aims to assist large institutional participants interested in cryptocurrencies or DeFi in risk adjustment, providing them with more suitable entry channels.

The project raised $1 million in seed funding in September last year, with investments from well-known figures in the field including Fourth Revolution Capital, ParaFi, Synthetix founder Kain Warwick, and Aave founder Stani Kulechov. Synthetix founder Kain Warwick also shared his story of how he met the Barnbridge project on Twitter yesterday.

Do you like weird origin stories? You do? Good here is great one.
Early August I get an unsolicited email from a purported SNX holder. This happens pretty regularly, no idea how they get my email, probably @garthtravers’s fault…

— kain.eth (✨🔴_🔴✨) (@kaiynne) October 19, 2020

Pool 1 Locks Nearly $200 Million

The project garnered significant attention in the DeFi space upon its launch. Yesterday, Barnbridge initiated the liquidity mining for Pool 1, supporting currencies including USDC / DAI / sUSD. Pool 1 will last for 25 weeks and is expected to distribute 80,000 (8% of total supply) governance tokens BOND, with mining rewards distributed weekly (32,000 tokens per week). As BOND has not started trading yet, the annualized yield of Pool 1 cannot be estimated. Nevertheless, Barnbridge's Pool 1 contract address has locked nearly $200 million in funds in less than two days.

While the annualized yield of Pool 1 liquidity mining is currently unknown, based on the yieldprediction table created by The Spartan Group analyst Darren Lau, with the current total locked assets, at a token price of $10, the annual return rate is estimated to be around 8.4%.

Pool 2 Expected to Launch Next Week

In addition to Pool 1, Barnbridge has set up liquidity mining for Pool 2. However, Pool 2 must provide liquidity for the BOND/USDC pool on Uniswap, but as there are currently no circulating tokens in the market, Pool 2 liquidity mining will only start after the first batch of Pool 1 rewards are distributed. Pool 2 mining will last for 100 weeks and is expected to distribute 2,000,000 (20% of total supply) BOND, with mining rewards also distributed weekly (20,000 tokens per week).