B Protocol makes lending platforms more safe by eliminating gas wars and shifting miners' profits to users. The user interacts with existing lending platforms through the company's smart contract.
Contents:
Description of the B Protocol project
Liquidity Providers (LPs) mitigate user debt, giving B Protocol priority over other liquidators. The protocol integrates with existing lending platforms, allowing users to interact with lending platforms through a dedicated smart contract interface.
The end-user protocol API is identical to the lending platform API, with the only difference that users interact with different addresses. The liquidators provide a cushion for the replenishment operation, and the scoring mechanism updates the user's rating whenever they perform the operation. User rewards are stored in the bank, which are distributed, according to the rating of the users.
How does the project work?
The protocol makes lending platforms more stable by encouraging liquidity providers to commit themselves to liquidating under-secured loans and transferring miners' profits back to platform users. As a result, users receive additional returns on top of their normal interest rate. How does it work:
| 1 | Users interact with lending platforms by providing collateral and borrowing (withdrawing) assets on and off the platform. |
| 2 | A user account receives insufficient collateral if the total amount of his loan exceeds his total amount of collateral (multiplied by the collateral ratio for a particular asset). |
| 3 | Once the account is insufficiently secured, the liquidation process is performed by providing the liquidator with the borrower's collateral at a reduced price, and the liquidator will be the first Ethereum account to invoke the liquidation function. |
The project provides more robust security guarantees to the underlying lending platforms, better profitability for users and higher returns for liquidity providers. And all this without any changes to the major lending platforms. Developers are currently building a project for three leading lending platforms - Compound, Makerdao and Aave. In the future, the system will have a standard abstract layer that will provide seamless integration with all lending platforms.
Additional information
All your questions will be answered by the company's technical support on social networks:
- Twitter;
- LinkedIn.
You will have the opportunity to take part in various competitions and promotions, as well as get more information in the company's technical document.