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SMART YIELD v2

Sustainable Fixed Income

Get fixed rates without counterparty risk that can be borrowed against. SMART Yield offers interest rate swaps on existing DeFi markets like Aave and Compound.

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True fixed rates you can rely on

Interest rate swaps, one of the most commonly traded derivatives in traditional finance, are now a reality in DeFi. SMART Yield allows you to mitigate the variable interest rates of other projects, such as Compound or Aave. There are two sides to each pool...... Expand

Fixed means fixed

SMART Yield’s fixed rates allow you to easily tackle four key pillars: diversification, capital preservation, income, and protection from inflation.

Certainty of ROI also helps make cash flow planning and forecasting a breeze for funds, companies, and family offices.

Fixed means fixed

What others are saying.

"Barn Bridge... will be much more comprehensible to an institutional trader or buyer who's used to structured products... Will allow for liquidity from large institutions to come in and start playing in DeFi"

Kain Warwick

Synthetix

"Barn Bridge ... could displace all of the structured products at Goldman Sachs and J.P. Morgan."

Mark Yusko

Morgan Creek Capital

“Choosing BarnBridge’s SMART Alpha was a no-brainer for the ASM team. The Senior position gives us the confidence to focus on what we love most, Non-Fungible Intelligence, knowing that the funds created from the Genesis Drop have complete price protection of up to 35%.”

Altered State Machine

Kain Warwick

Synthetix

"Barn Bridge ... could displace all of the structured products at Goldman Sachs and J.P. Morgan."

Mark Yusko

Morgan Creek Capital

Altered State Machine

Kain Warwick

Synthetix

The world’s most
powerful tool

No counterparty risk.

The realized yield mechanism eliminates counterparty risk. The cumulative yield earned during the prior epoch for the pool guarantees the current epoch’s return.

BarnBridge DAO levels up your fixed yield position.

The LP position is taken by the BarnBridge DAO to power up the fixed yield side of the pool. It only earns a nominal funding rate on deposits.

All of the yield that is accrued by LP and fixed yield deposits until maturity is realized yield for the next bond period.

Exit position at any time on secondary markets.

When you deposit into SMART Yield, you get proof of liquidity tokens that represent your share of the pool. These tokens could be sold on a secondary market if you ever need to exit your position prior to the maturity date.

Grow treasury value and hedge against fiat inflation.

SMART Yield is an ideal solution for funds, DAO treasuries, companies, and family offices to earn fixed rate yield on treasury assets while retaining the ability to exit if the need arises.

Resources.

FAQ

How is the funding rate for bonds calculated?

BarnBridge DAO votes on it (a percentage from users’ deposits). It’s 0.5% to start.

How do withdrawals work?

At the end of an epoch, redeem proof of liquidity tokens for initial deposit + fixed yield with No withdrawal timeframe. In order to stay in the pool, you will need to signal your interest in remaining in the next epoch. Otherwise, if you do not Signal within the epoch duration you will need to withdraw and enter again in the next upcoming epoch.

How do liquidations work on defaulted borrowers?

We are starting with stablecoins so the risk of liquidation is lower. However, in the case of a stablecoin going unpegged or in the scenario that we add in more volatile assets, you can be liquidated if your health factor at the originator enters into a liquidation threshold. It will be likely that the BarnBridge DAO itself will liquidate users and take the margin at the originator in order to keep the system solvent. However, any actor can do this permissionlessly.

Another factor to keep in mind in regards to liquidations is that users will be paying an interest rate in order to borrow against their positions on the platform. That interest rate eats into the principal and can trigger a liquidation if it causes the principal to dip below the health factor at the originator. The interest rate is controlled by the underlying provider.

What is the purchase window to join a pool?

- What is the purchase window to join a pool? The purchase window for the first epoch to join a pool is 1 day, after that 1-day withdrawal window comes. After that, users can Signal rollover into the next epoch or deposit into the next epoch in advance during the period of yield earning.

Do fixed yield positions roll over to the next epoch?

Users are able to Signal rollover to get their deposit automatically redeposited into the next epoch.

What is an epoch?

An epoch is a duration of time. We will likely start with a 30-day epoch on the Ethereum mainnet and will try with shorter durations on Optimism. Each epoch includes 1d deposit/withdraw, 1d withdraw, and ~28 days of earning yield.

How does earned yield work?

BB v2 swaps variable yields from money markets with fixed yields for its users. This is accomplished by bringing in Earned Yields (or Realized Yields), yields earned from money markets like Aave or Compound on the last epoch deposits. In other words, it is earned yield from the past epoch being pushed forward into the epoch going forward.

What is an upcoming pool?

Announced but not yet accepting deposits.