🚀 Boosted Finance: bVault Release, Profit & Reward Sharing, Community Message
The day is here — the bVaults release! bVaults are automated yield strategies that generate rewards that are distributed back to depositors in the form of an interest-bearing token.
The key difference between bVaults and the many other vaults out there is that the ‘boosters’ can be applied to vault rewards, allowing depositors to amplify their rewards and speculate on the yield of a particular strategy. Anyone can become a strategist and create a bVault with custom parameters.
The vision for Boosted Finance is simple and remains the same, we want to create a fully community-governed project that is self-sustainable with community efforts in development, participation, and engagement.
To bring this one step closer to realization, we have created an open and gamified framework for strategists to share high yield opportunities while earning a success fee and eliminating the barriers of entry for players.
Before we get into the breakdown of bVaults, we want to emphasize that this is a BETA release and still unaudited by a professional security firm. The audit of the bVault contracts is still under review by a top tier audit firm and is approximately due for completion on the 7th of November 2020.
For this reason, we have limited the initial global deposit cap to $100,000 USDC to slowly test the system while our auditor reviews the contracts. We again advise everyone to proceed with caution and audit our contracts before risking any funds by depositing.
Genesis Vault: USDC mStable Strategy
To begin, we have opted for a stablecoin strategy to minimize impermanent loss and allow the team to thoroughly test and experiment the behavior of the players when it comes to boosters.
The strategy requires you to deposit USDC on Boosted Finance which is used to provide liquidity to the mUSD/USDC pool on Balancer. The liquidity provider tokens (BPT) are then deposited into mStable to automatically farm MTA rewards and swapped at the end of each epoch (1 week period) to get more BPT tokens, compounding rewards in the process.
This means there are three sources of rewards for depositors:
- Liquidity provider fees from Balancer
- $MTA tokens that we automagically swap for you to get more BPT (liquidity provider tokens) and compound your rewards
- bfUSDC, an yield-bearing token that you receive by depositing into the vault
The strategy designed for stablecoin (USDC) holders to set and forget. This is not your 200%+ high yield degen strategy — again, the purpose of the genesis vault is to set grounds for research and experimentation while our audit is underway. As soon as the audit is complete and we have exhaustively made efforts to mitigate potential exploits, we can begin to introduce higher risk strategies with higher rewards.
Boosters use the Wave 3 pricing mechanism which scales cost proportionately to the individual staked amounts (whales pay more, shrimps pay less). The key differences for boosters in bVaults are that the cost increases by 1% globally for each purchase but also reduces by 20% after each epoch (1 week period).
Each vault has an independent booster mechanism. To BOOST your rewards, you will need to stake your bfUSDC or bf-tokens for upcoming vaults in the designated pools. This will bring additional rewards to your already yield-bearing tokens that can be boosted.
Here is a breakdown of the booster mechanism:
- Each booster purchase amplifies your reward by 5%
- There is no limit to booster purchases but the cost will scale to your total value deposited
- Boosters are effect for a one week period (1 epoch)
- There is a 1 hour cool down for consecutive booster purchases
Vault Reward Pool
As mentioned above, each vault will have a yield-bearing token and supplementary rewards pool where players stake bf-tokens and purchase boosters to speculate on the yield of a particular strategy. Each strategy will have different proportions of the total reward accruing to the bf-token and vault rewards pool.
The rewards proportion ratio is set globally for all vaults with the initial split being 50:50 which can be changed through the controller contract by spending 10 BOOST in a follow up release. With each reward proportion change, there is a 1% increase in cost globally for each change but also reduces by 20% after each epoch.
BOOST Reward Pool
Any function that costs BOOST tokens, such as booster purchases or changing reward proportions, will be distributed to stakers who have locked up BOOST into the governance contract. This means you’ll be able to stake your BOOST to earn rewards from the utilization of the protocol while also being able to vote on the governance proposals!
The rewards are distributed by calling treasury.rewardVoters() over three days. The current split is as follows for all BOOST rewards:
- 71.25% distributed back to BOOST stakers
- 23.75% is burnt from the total supply
- 5% is distributed to the ecosystem fund
Thank you to every AlphaNaut that has been patient with our team over the course of the last month during the development of bVaults. Boosted Finance is not a perfect project. We are not a perfect team. BOOST is an experiment designed to test the boundaries of decentralized finance and community governance.
The treasury is relatively capitalized with $152,000 and with the launch of bVaults, we are calling all external contributors, freelancers, developers, marketers, DeFi enthusiasts, and more to reach out to explore how they can contribute while being compensated. If you are interested in contributing to the research and development of bInsure or DeFi — please reach out to any of the core contributors on our Discord channel!
While we understand our community’s suggestion to take a public approach, it’s critical to note that the core contributing team must juggle family and external commitments. (Yes, we each have little ones too!). We continue to do our best given the circumstances and external pressures to bootstrap a superDAO and develop the start of DeFi product suite which we hope to be fully taken control of by the community.