BarnBridge Launches on Polygon Network
BarnBridge has deployed its first two applications, SMART Yield and SMART Exposure, on the Polygon Network.
This deployment represents BarnBridge’s first expansion beyond Ethereum mainnet and marks an exciting day for existing and prospective users alike.
Following Aave
The deployment of SMART Yield on Polygon follows the path taken by one of our existing integrations on mainnet, Aave. As SMART Yield plugs into external lending markets, BarnBridge is well-positioned to follow in the footsteps of teams pioneering cross-chain deployments. Moreover, it allows SMART Yield to pass on the $MATIC rewards currently being distributed to both platforms.
Aave’s Polygon market is currently 30% the size of the v2 market on Ethereum mainnet: $3.7B versus $12.2B, respectively. The Polygon team has committed to providing $85M worth of $MATIC for liquidity mining through the end of the year.
For a refresher on how SMART Yield works, consider checking out our Beginner’s Guide.
Deploying SMART Exposure
The deployment of SMART Exposure on Polygon comes a week after its initial deployment on Ethereum mainnet. The contracts being deployed on Polygon reflect a change made to the rDiv parameter on the mainnet contracts: in both cases, the parameter is set to zero. This means that instead of rebalancing occurring only when a certain period of time had elapsed AND the deviation between the two assets was beyond a specific threshold, the rebalancing will occur purely based on time passing (i.e. daily rebalancing).
The Importance of Scaling Solutions
Ethereum scaling solutions like Polygon remove a number of frictions associated with our applications on mainnet; in particular, Polygon will remove the impact gas fees have on buyers of fixed income senior SMART Yield bonds. This should attract new users, as well as unlock new user behaviors. For example, gas fees make rolling over weekly fixed income positions impractical on mainnet; on Polygon, this becomes an effective treasury management strategy complete with regularly compounding interest. The lessons learned from our first deployment on a scaling solution will undoubtedly impact the future direction of BarnBridge, and inform our view of where the rest of DeFi is headed as well.
What is BarnBridge?
BarnBridge is a risk tokenization protocol for DeFi. Its applications allow users to select from opposing pools, referred to as tranches, and take positions on risk factors like interest rates or asset prices. Its first application, SMART Yield, offers fixed and levered variable yields on stablecoins deposited into underlying lending markets like Aave, Compound, and C.R.E.A.M. Finance. Its second application, SMART Exposure, automates user position management between any two ERC-20 assets at set ratios. Within the coming months, its application suite will expand to include SMART Alpha and FIAT. BarnBridge is currently live on Ethereum and the Polygon Network.
📰 INFO:
https://medium.com/barnbridge/barnbridge-launches-on-polygon-network-144b98f10348
