BACK decentralized excess lending agreement will be launched soon, helping DeFi efficient mining market

Time:2021-12-25 Source: 1089 views DeFi Copy share


BACK.Finance released the smart contract BACK for excess lending based on the Heco ecological chain.

In 2021, the lending track, once known as one of the “troikas” of DeFi, has a rapid development momentum, which means it will gradually occupy half of the DeFi market. According to data from the non-small loan area, as of April 22, the DeFi loan market had a storage value of 32.297 billion US dollars and a loan value of 11.545 billion US dollars. The DeFi lending market has also begun to subdivide in vertical areas, including the "pawnshop" type DeFi represented by Maker DAO, which refers to the form of stable currency, which only borrows but does not lend; and the unsecured lending represented by Aave, that is, flash loans; And over-mortgage loans represented by Compound.

So what exactly is excess mortgage lending? In the traditional financial market, if we have a house with a market value of 1 million, when we encounter an urgent need for funds, we take the house to the bank for mortgage. The bank usually only pays two-thirds of the market price or even lower. To lend us cash, this is the excess mortgage lending in the traditional financial market. The excess mortgage lending in DeFi only turns centralized banking institutions into smart contracts on the chain. In fact, in simple terms, DeFi’s over-collateralized lending is the behavior of the borrower through the mortgage currency, borrowing other currencies according to a certain proportion; the mortgage party obtains a certain mortgage income by depositing its own currency in the transaction pool, which is actually solved It is the issue of mortgage liquidity.

In the DeFi mining boom, many high-yield mining projects have become the targets for miners. For miners with small capital, even if they have information on multiple high-yield mining projects, they suffer from lack of circulating funds. Obstacles, missed the high returns of many high-yield mines.

BACK.Finance, a decentralized excess lending agreement, released an excess lending smart contract BACK based on the Heco ecological chain, which introduces leverage into the excess lending agreement, bringing each other to the platform’s liquidity miners, lenders and liquidation executors Expected benefits, including up to 3 times leverage for liquidity miners to participate in liquidity mining!

In BACK, the lender deposits basic assets in the BACK deposit pool to obtain deposit income. These assets will be provided to liquid mining users to increase the mining position. Liquidity miners obtain higher returns through leveraged position investment provided by BACK. In addition, BACK has noticed the problems in lightning loans, including AAVE, because lightning loans allow for the loopholes in the contract to guarantee that the loan and repayment can be completed within a transaction within the contract. Due to the existence of leverage in BACK’s excess lending, although the utilization rate of assets has been greatly improved, there are also risk factors of excess utilization and inability to repay. The existence of liquidation executors has solved this potential crisis. Because when the transaction load rate is too high, the liquidation executor, as the monitoring party of the BACK liquidity mining pool's leveraged trading liabilities, will execute the liquidation and obtain the liquidation income. It can be said that the liquidation executor is a concrete manifestation of BACK's extremely ecological forward-looking.

BACK 3 times leverage helps efficient mining

For liquid miners, BACK is undoubtedly the best choice. It provides liquid miners with up to 3 times the leverage to participate in liquid mining, helping users to obtain greater returns per unit of time. Liquidity miners can, after choosing a mining pool, provide any proportion of the mining pool's currency as the principal and set the loan currency and leverage ratio to participate in leveraged mining. For any 1 or 2 tokens, the BACK protocol will help users to automatically exchange and automatically pledge the obtained LP certificates to obtain platform currency rewards such as MDX. The BXH/MDX obtained by mining also supports one-click reinvestment. Liquid mining users can also increase their positions, withdraw funds or repay their loans at any time to adjust their mining positions, and obtain rewards for incentive token BACK.

What are the advantages of BACK?

Ultra-low gas fee: BACK is a decentralized excess lending protocol based on Heco. It has a great advantage over the high gas fee on the ETH chain in all ecological links such as borrowing, mortgage, and liquidation. Gas fee Decrease means that users will get more benefits.

Multi-wallet support: Currently, BACK has settled in multiple wallets, including BitKeep, the world’s largest multi-chain wallet, CodeBank, a professional multi-currency wallet under Huobi, Huobi Wallet, a multi-chain universal wallet, Token Pocket, etc. Users can easily Use BACK.

Multi-platform docking: BACK supports multi-platform docking, including BXH/MDEX, etc., to concentrate high-quality rich mines and reduce the information collection time of liquid miners.

Safe and autonomous ecology: BACK's mining pool has been strictly audited, and the project was initiated in the community. BACK token is a community governance token, with block rewards, community autonomy, deposit rewards, loan rewards, voting vouchers and other functions, truly realizing the ideal of co-governance in the community.

Flexible and efficient interaction: With an excellent technical team as the underlying support for BACK, the user's operation process on the BACK platform is more flexible and efficient, bringing a good interactive experience to ecological users.

High transparency and fairness: Based on the excess lending protocol on the chain, it has the characteristics of non-tampering and high transparency. Everyone is equal in the BACK ecosystem. The DAO autonomy of the BACK token is the greatest manifestation of the entire ecological fairness.

BACK token distribution mechanism

The total issuance of BACK tokens is 200,000,000, of which loan mining accounts for 82%, or 164,000,000, and the output of the borrowing and depositing pool in the first week after the start is 3024,000. In the second week, the production volume was 2,520,000 pieces, and the production volume in the third week was 2016000. After that, the production is planned to be reduced by 2% every week (adjustable, it is planned to reduce to 35% of the production in the first week after one year).

The team accounted for 7.5%, which is 15,000,000 pieces. Starting 14 days after going online, it will be unlocked linearly within 24 months. 144,000 pieces will be unlocked every week 20547 pieces per day.

Market operation accounted for 4%, which is 8,000,000, and it will be unlocked linearly within 24 months after going online. 78,431 unlocks per week 11204 per day.

Cornerstone investors account for 4%, which is 8,000,000. Starting 7 days after going online, it will be unlocked linearly within 24 months. 78,431 unlocks per week 11204 per day.

The combustible reserve is 2.5%, that is, 5,000,000. Newly launched, cooperative airdrops, compensation for users to wear warehouses, and balance the output of mining pools.

BACK opened the subscription at 14:00 on April 23, and officially launched the Heco DEX innovative trading platform BXH at 14:00 on April 24. It is reported that BACK will also launch MDEX in the future, opening two major trading pairs, BACK/USDT and BACK/HT.

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