The Backd protocol is live on Ethereum mainnet! Users can start earning yield by providing liquidity into Backd’s yield-aggregating liquidity pools. As Backd brings reactive liquidity to DeFi, new protocol components and features will continue to unlock following the Phase I launch.
Phase I: Yield
Phase I of the Backd launch, enables liquidity providers to earn yield by depositing funds into Backd liquidity pools. Until all launch phases are live, deposits will be capped, such that the total deposit cap per user is set to $10,000 USD worth of a pool’s underlying asset.
The first liquidity pools on Backd are for DAI, USDC, and ETH. Each liquidity pool aggregates yield in the pool’s underlying asset. In exchange for their deposited funds, liquidity providers on Backd receive pool specific “bkd” LP tokens. For instance, for depositing DAI into the Backd pool, one will receive an amount of bkdDAI. Users are free to withdraw their liquidity at anytime in exchange for their LP tokens.
Every Backd pool has a yield-generating strategy linked to it. Yield is powered by Convex and part of the strategy profits are sold for a pool’s underlying token and auto-compounded. For a more detailed overview of how these strategies work, please have a look at the Backd docs.
Why is Backd launching in phases?
Reactive liquidity creates countless opportunities for protocol expansion. Whether it is through new strategies, Actions, or integrations, the possibilities are nearly endless. In order to create an infrastructure for efficient expansion and development, Backd needs to be established on mainnet properly. A phased launch is optimal as it ensures this criteria is met.
The Backd community also had influence over this decision. During our early development and extended testnet period we received very constructive feedback from other protocols and early community members. In gratitude of this support, further adjustments to the launch schedule were made so new protocol features could be integrated. Keep your eyes open 👀
Beyond Phase I
Phase I is the first step in bringing reactive liquidity to DeFi. Backd will remain in Phase I for a short period of time. After this period, the following phases will commence as outlined in the above graphic.
There is no Backd Governance token yet. Don’t fall for scams!
Follow us on Twitter and join the community on Discord