FEB 28: BOMB SHELL MONDAY
BOMB FRENS & FAMILY:
TURBULENT TIMES
As we watch turmoil unfold globally (and hope there are no ACTUAL BOMBSHELLS), we are reminded of life’s simplicities, and things we should not take for granted. Thankfully, you are in the right place with BOMB.MONEY — as having our peg token (BOMB) tracking the price of Bitcoin, naturally you are offered more safety than through other more volatile cryptocurrencies.
NEW FEATURES, NEW UI!
In last week’s update, I had mentioned a new “mini-site,” entirely focused on the BOMB-BTCB pair. Today I will go into detail about the new features that will be made available, the advantages of those features, and how it all ties into improving the stability and health of the core BOMB.MONEY protocol.
We have not yet decided on an official name for these new features/aspects of the protocol, so I will use a temporary codename BOMBMAX throughout the rest of this article while describing the features.
GOALS
A good place to start will be the goals we are looking to achieve with BOMBMAX.
As I am sure most of you are aware, a healthy BOMB price/peg, makes for an extremely healthy protocol. With high demand for BOMB, everything else falls into place: APRs rise, TVL (Total Value Locked) rises, and we can easily fund future growth, additional marketing, and more.
The main goal will always be buy pressure on BOMB, this latest release will accomplish this in two major ways:
- Adding additional ways to get involved with BOMB, BTCB, the BOMB-BTCB pair, and more. Read more on this in the BOMBMAX Features section below
- Increase target market with ease of use: Building an all-new UI, based around simplicity, keeping users on our site throughout any necessary processes, and focused purely on the best investment in cryptocurrency: BOMB!
BOMBMAX
We have forked smart contracts from Tarot Finance (tarot.to) on Fantom, to implement the new set of features. Tarot Finance is based on the Impermax protocol with some improvements. To understand the Impermax protocol, and its advantages, I highly recommend reading their whitepaper. I would suggest reading Chapters one and four at minimum to get a grasp of how the protocol works, and the problems that are solved with their solution.
BOMBMAX Features
The following features will be available upon release, all for the BOMB-BTCB pair. We can introduce additional pairs in the future, such as BSHARE-BNB and/or others, however we are strictly focused on the new UI and BOMB-BTCB for now.
Single Asset Staking
The most basic, and easy to use feature, will be true single asset staking of BOMB and BTCB. This allows participation in our protocol, and indirect access to our liquidity farming, for those not comfortable with the risks associated with providing liquidity.
Because of the relative stability of our BOMB-BTCB pair, impermanent loss is not a huge factor, but still, some could worry about potential losses. Our single asset staking addresses this fully, allowing anyone to lend BOMB and/or BTCB into our protocol.
The APR paid for single asset staking is calculated dynamically based on supply and utilization of the single assets (Borrowables). As can be seen on Tarot Finance, the farms which are highest paying, also pay very well to the single asset suppliers. This is because profit can still be made from farms, even while paying a hefty borrow APR on the assets. The less a farm/pair is paying, the lower the APR must be on the single assets for borrowing to make sense.
As simple as this feature may sound, it offers the following massive benefits to users and the protocol:
- Easy entry for inexperienced DeFi/crypto users. Nothing is as straightforward as depositing a single asset, and having it grow automatically based on dynamic APR.
- Additional use case / long term storage of BOMB produced by the protocol. Users involved in the Boardroom and/or xBOMB will have access to newly minted BOMB and will want to put that BOMB to work. Instead of selling on the open market, it will be able to be staked to earn a nice yield.
- BTC Mainnet Staking benefits. Currently, our BTC Mainnet staking service converts all deposited Bitcoin to Yield Bomb BTC (ybBTC). ybBTC is our friendly name for liquidity farming with our BOMB BTCB pair. With single asset BTCB staking, we can offer both ybBTC for higher yield, and a safer, true BTC single asset staking. This will be available for round 2 of BTC Mainnet staking.
- Allows more risk tolerant users to leverage up their current BOMB-BTCB farm positions to earn even more yield than what our farm is paying! More on this in the Leverage section.
Try Single Staking!
We have our production smart contracts deployed, anyone who wishes to check out the single asset staking can play with the demo at the link below. Supplying, withdrawing, earning interest is all working. Because this feature will live on our new UI, and not our current site, none of the stats are showing here except one — the total amount of assets available for borrowing (Total supplied assets minus total borrowed assets)
Single asset staking: https://app.bomb.money/supply
Using Liquidity Provider (LP) Tokens as Collateral
To take advantage of borrowing (straight asset borrowing, or leveraged liquidity farming with borrowed assets), you must first provide collateral. Impermax designed the core system to use LP tokens as collateral, which would then allow you to leverage your position to 2–10x the size (depending on many factors, and risk tolerance), and collect much greater trading fees.
With all the incentivized liquidity farming options available nowadays, Tarot built on this system and added a massive feature.
The huge feature add that Tarot provided, is the ability to use an auto-compounding vault receipt token in place of a straight LP token. I will skip the technical details of how it works, and get right into the benefits provided:
- Ease of use. Deposit LP tokens, the same way as you would in our manual farm, or in our current auto-compounding vaults. User experience is the same.
- Auto-compounding vault has been optimized for the BOMB-BTCB pair and works identically to our current vaults. 1 Bomb Vault Token (the receipt token received from depositing into the vault) will gradually be worth more than 1 Cake-LP Token. After each compound, the rewards are sold, and used to buy additional LP tokens to grow the position size of all participants
HUGE BENEFIT: The BOMB-BTCB collateral/lending/borrowing pools have been setup with vault tokens as opposed to straight LP tokens, get the best of all worlds:
- Ability to use the full value of the contents of the vault (per the users share) as collateral for leveraging / borrowing. As the value of your collateral grows, the safer your borrow/leverage positions will be, or the more you will be able to borrow due to the increased collateral position
- Get all benefits of auto-compounding vaults, and constant position size growth. Applies regardless of if you utilize borrowing/leveraging or not.
- Leverage up or down your position any amount (within allowable range) in a single transaction, made simple from our web interface
Asset Borrowing & Leveraged Liquidity Farming
Once a collateral position has been established by depositing LP tokens, you will be able to take full advantage of asset borrowing and leveraged trading.
Because our primary pair is a peg token (BOMB), paired with its associated peg (BTCB), the pair is much more stable than a typical liquidity pair. This makes it an exceptional candidate for leveraged trading. Leverage positions rely on the ratio of price between both assets staying similar as to when the position was opened, to prevent liquidations. The further you leverage the position, the smaller that safety range is.
The combination of stability of our pair, combined with high paying farms, will create great demand for our single assets to be supplied via single asset staking. High utilization of our supplied single stake assets will increase APR to suppliers, and incentivize them further to provide additional assets.
In addition to leveraging your LP position, you are also able to borrow one or both underlying assets. Provided you are within the allowable safety margins, you can borrow and repay the single assets as you please. This provides much flexibility to our users, and without the need to exit farm positions, in case you have a sudden need for one of the assets.
Anyone interested in checking out some of the stats we have access to already can check here: https://thegraph.com/hosted-service/subgraph/bombmoney/bombmax. The default view that will come up will show stats on the BOMB-BTCB Lending Pool that was established with auto-vault, both borrowables, collateral contract, and more. Just hit the purple play button to see the live stats (Warning: This data was meant to be interpreted and displayed by a front-end web interface, you will need a basic understanding of JSON to understand the results shown)
I welcome all to our weekly live stream on Wednesday (https://youtube.com/c/bombmoney) as well as our twitter space Friday (https://twitter.com/BombMoneyBSC). I’d be happy to answer any questions regarding our plans and hear any suggestions about how it could be improved.
BASED,
Aaron
