How to Farm $BOND with BarnBridge

Transcript

[Music] hi everyone this is d5 dad today i'm going to talk to you about a new d5 protocol which tokenizes risk this protocol is referred to as barn bridge i'm going to walk through how one can stake stable coins and begin to earn the bond governance token a little background on barnbridge is they are aiming to tokenize risk and thus allow one to mitigate that risk using debt-based

derivatives the way d5 works today is it makes use of variable rate offerings and in the legacy finance world we have lots more offerings with fixed rates and one of the most common products for using fixed rates is a bond now when we look at maker dow synthetics ave compound curve and others those are the huge projects that are already enabling us to take advantage of variable rate offerings but what barnbridge enables is for us to pull together different decentralized protocols and hence normalize the risk curve

so in a nutshell we are bundling together d5 supply positions based on their risk and you can see in this example we're calling out low risk mid risk and high risk and when we bring these together if you call it a tranche which is a term that's used normally in legacy finance you can start to think about these different offerings as having lower risk to higher risk lower yield to higher yield so one that is holding a more risky tranche might earn a higher return but also could lose a greater amount of money and these are the types of offerings

that i believe will bring even more from traditional finance into the d5 space so here's how i can get started today with barnbridge if you go to app.barnbridge.com this will show you that there are two different pools to participate in the one on the left here refers to a pool of usdc dye and susd and by staking these i own a portion of the pool balance and hence i will earn a portion of the 32 000 bond being issued this week separate from this is the ability to earn bond for participating in a uniswap pool the only thing about this is that bond

isn't available yet until others have earned bond in this pool which happens in about six days so once that's available one could participate in this uniswap pool and then they can stake their liquidity provision token so to get started i'm going to connect my wallet then i'm going to scroll down to the pools tab here and click on staking now depending on which of these three tokens i want to deposit i'm going to choose to then enable that token so if i'm going to enable die i can click here and this is the first of two transactions because this is an approval transaction to spend my die

so if i click on edit permission i'm going to give permission in this case to spend 1 000 die and then i'm going to choose to edit the transaction fee which will allow me to adjust the gas price according to gasnow.org if i put through the gas price at 17gway it should go through in about two minutes okay i'm back a few minutes later and the die approval has gone through so you can see the little switch here has been turned on so if i click here i can then choose how much die i want to stake so i'm going to put through 1000

die and then i can choose in advance what's the ideal gas fee which i normally check on something like the ether scan gas tracker so guestnow.org says that anything between 26 and 18gway will probably go through in a minute now it's changed to 31gway so i'll use 29gway just to get it through quickly and it looks like i'm going to pay about 3.76 in gas so i'm good to go okay so my transactions gone through you can see that under barn bridge staking i've deposited one thousand die

back in the barn bridge app if you click on the little piggy bank which stands for pools you can see below that of the 185 million that's been deposited into barn bridge pools i own 1 000 of it with 1 000 die now since i'm staking on barn bridge if i go to zapper.phi and i connect my ethereum wallet i can see here below that in barn bridge i have staked 1000 die you also can find your staked balances under deposits which shows me that i have steak dye within barnbridge so that's it that's how easy it is to participate in this barn bridge

liquidity mining i won't see my rewards for about six more days so this is epic one of 25 which means that this will complete around six days from now and that's when i will potentially earn 0.1578 bond it all depends on how much more liquidity gets added or if people start to withdraw that liquidity it works like every other defy mechanism the more i own of the pool the more of the rewards that i earn and there's a total of 32 000 bond being issued to liquidity providers here over the next week so that's all i'm going to cover for today just a few of the risks

to keep in mind barnbridge is a new d5 protocol so i am cautious with anything that is new because there could be a smart contract bug however it is worth noting that uh if you look at this update which i will link to the show notes they do mention that they had their technical advisors from atpar audit their smart contracts they also did an outside audit with hacken and you can find the report here another risk to be aware of is that i have exposure to stable coins and per usual i need to be mindful that a stable coin peg could fail these are all very

popular and liquid stable coins but it's worth noting that it's risk that i should be considering before participating in barn bridge another thing to consider is what sorts of admin rights does the team have i'm not aware of any but i'm very confident since they just launched that they've got to be there so there is some centralized risk to using barnbridge the last thing to be aware of is this uh potential reward again it will fluctuate with what is the pool balance over the next six days and and onward i also should be mindful that there's no guaranteed financial reward from this even though i'm earning this bond token this is a token that could end up being

worth zero however there will be a uniswap pool that's incentivized for liquidity providers that provide liquidity with usdc and the bond token thanks so much for watching if you're interested to learn more about d5 don't forget to subscribe to my own channel here at d5dad.com you can also watch yieldtv at tv.zapper.phi this is a daily live stream where we interview the leading builders and thinkers and defy it's a show that we're doing three to five times a week and it normally airs at 12 pm eastern but you'll find that there is playback of all of these different episodes here on yield tv

[Music] you