Proposal: Add Support for Barnbridge BOND Token

I am Akin Sawyerr, I am part of the operations team at Barnbridge

We are proposing to add Barnbridge (BOND) as a collateral asset to the Aave protocol allowing investors to gain further exposure to risk tranched yield products.

Barnbridge will help bring more liquidity to AAVE

At the core of the Barnbridge thesis is the market need for diverse yield products. Two particular attributes we are focusing on are the ability to take fixed rate positions, and higher variable risk exposures from a single asset pool. We are taking an approach that’s tried and true in traditional financial markets called risk tranching.

Tranching risk allows investors to take targeted positions and exposure on yield producing assets. These financial assets are generally known as collateralized debt obligations, the most popular of which are mortgage backed securities.

Tranching is the process of subdivided a pool of assets into risk categories with different return profiles. Typically the more conservative and lower risk / lower return pools are called senior tranches and the more aggressive higher risk/ higher return pools are called junior tranches.

    Example of the tranched debt pool (for Illustration purposes only)

Barnbridge will be able to plug into AAVE to access variable yielding products from AAVE and other originators of debt products, we will then create pools of these debt yielding assets with similar attributes (terms, duration etc), and tranch them into higher risk and lower risk segments.

The end goal is to create derivatives that give liquidity providers a more diverse set of tradable products that meet their evolving needs. This should create more liquidity in the market for debt products and attract new capital into the defi space.

We’re looking forward to community feedback.

References

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I support this. However, I’m obviously biased as one of the members of the BarnBridge team.

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Certainly hoping to see this approved.

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As Barnbridge will allow for more sophisticated debt instrument constructions on top of the AAVE protocol, it’s worth fortifying the relationship between the two protocols.

To accommodate the distribution schedule of the BOND tokens, it should be worth considering a low collateralization factor at first that is then scaled up over time.

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Big support from me too.

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We’re cool with this too. Think it’s healthier for AAVE to have a low collateralization ratio for the first 6 months for sure.

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approved :white_check_mark:

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Make this happen 100%. Barnbridge is one of the pillar od Defi that hasn’t been developed yet. Defi primitive at your fingertip. DAO launch soon and then Smart yield and Smart alpha.

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Barnbridge is and will be so close to Aave products, add BOND to AAVE is the first step. 100% support.

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This needs to happen, all the good points mentioned above with links between BOND - AAVE and Linking the two make so much sense for the DeFi space.

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100% support for this over here! $BOND to the MOON!

Nice - I love seeing this resurfaced.

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@akinsawyerr you may have seen it in some other ARC/Proposal threads, but in case you haven’t - the genesis team released the Aave Governance V2 and since then the listing process is completely open and decentralized. It’s only required that 0.5% of the total supply of AAVE is gathered as proposition power - held or delegated - to submit the proposal. Please see Governance, specifically the asset listing tutorial.

Thanks. We are on it.

1 Like