B.Protocol Integration

About b. Protocol

B.Protocol is a backstop liquidity protocol for DeFi, handling liquidations in scale. B.Protocol v2 is pooling users’ funds that are dedicated towards liquidations, using the B.AMM (Backstop AMM) novel design.

Proposal

This proposal would Integrate B.Protocol v2 with bZx to offer better liquidation ratios, and up to x15 leverage on specific trading pairs in Fulcrum, using 105% maintenance margin.

This proposal would also approve an allocation of 250k BZRX tokens that will be used towards incentive rewards for the backstop depositors.

Details

See forum post for discussion: https://forum.bzx.network/t/integrate-bzx-fulcrum-with-b-protocol-v2-over-polygon/402

This proposal suggests starting with a pilot experiment over the MATIC/USDC and the MATIC/USDT trading pairs on Fulcrum over Polygon with x15 leverage on long positions, and with margin maintenance of 105% .

From discussions held with the Polygon community we understand there is high interest for long MATIC positions with higher leverage than what the current platforms offer. As USDC and USDT are very liquid assets it will be easier to pool the needed liquidity for a strong user-based backstop.

Users' funds deposited into B.Protocol v2 will be held in an interest bearing QuickSwap USDC/USDT pool while idle, and will be used for liquidating any unsafe MATIC/USDC or MATIC/USDT position whenever needed. The seized MATIC collateral will be sold back into USDC or USDT and be returned into the QuickSwap pool with any additional profits made during the liquidation and rebalancing process.

Incentives: In order to incentivize early depositors into the backstop pool of USDC/USDT, and in order to demonstrate the endless composability opportunities in DeFi, a joint Liquidity Mining program will be put in place, that will reward liquidity providers with BPRO, BZRX, (and perhaps also with QUICK and MATIC tokens).