[BIP-37] Approve B.Protocol Partnership for Liquidity Backstop

Summary This proposal suggests approving a new gauge for a baoUSD liquidity backstop managed by b.protocol. In exchange for implementing and managing a baoUSD and later a baoETH backstop they will receive 5m BAO tokens, vested for 1 year with a 1 year cliff and 5% of all loan revenue generated by each synth.

Goals

• Reduce risk of bad debts on Bao Markets: B.protocol are experts in providing liquidity backstops. They perform this service successfully already for Liquity (LUSD), Vesta (VST) amongst others. Guardians believe that a liquidity backstop managed by b.protocol will significantly reduce the risk of bad debt for the protocol.
• Increase adoption of baoUSD: Liquidity backstops take a single sided deposit of baoUSD. On top of the gauge rewards, depositors will earn “real yield” by liquidating at risk positions on the protocol, profiting from the liquidation penalty. This will help adoption from multiple perspectives: the ability to earn real yield, a single-sided gauge deposit and improved legitimacy as a stablecoin that takes security seriously.

Full proposal can be read here : https://gov.bao.finance/t/bip-37-approve-b-protocol-partnership-for-liquidity-backstop/1234