B.Protocol FAQ
The following are the most common questions the B.Protocol team has been asked by new users of the protocol. It will be updated as we go forward. Get yourself educated…
1. What is B.Protocol?
B.Protocol makes lending platforms more stable by incentivizing liquidity providers (keepers) to commit on liquidation of under collateralized loans while shifting the miners extracted profits back to the users of the platform.
2. As a lending platform user, what should I do with B.Protocol?
B.Protocol provides you an alternative interface to MakerDAO (and soon Compound Aave), which enables you to share liquidation proceeds, and accumulate user Rating.
3. Were the smart contracts audited?
Yes. B.Protocol smart contracts were audited by Solidified.
4. How do I use B.Protocol?
- Head over to bprotocol.org/app and connect your wallet
- If you are already a user of MakerDAO — you can import your existing Vault to B.Protocol seamlessly, using the “Import” button on the upper left corner.
- Manage your vault (Deposit and Withrow ETH/ Borrow and Repay DAI) via B.Protocol interface.
- Accumulate user rating and share the liquidation proceeds every epoch (6 months currently).
5. What is the B.Protocol Rating score?
Rating Score is the way for B.Protocol to calculate your part in the liquidation proceeds of the platform, and your weight in the protocol upgrade vote (both will occur in April 2021). A user’s Rating Score is determined by the amount of DAI position (debt) you hold over time. If a user has a debt of 1000 DAI for a period of 7 days he will get approximately 7 points. The score is non-transferable and not even an ERC20 token. Hence it cannot be traded, and can never be traded. While we technically cannot prevent a future governance from tokenizing it, we will not actively support any outcome that will violate the applicable regulatory frameworks.
6. What is the JAR Balance?
The JAR is where the users’ liquidation proceeds are being accumulated. 50% of the total liquidation proceeds are automatically being sent to the JAR, while the other 50% is kept by the liquidators. This distribution balance will hold for the first JAR distribution, which will take place 6 months after the launch of B.Protocol on mainnet (at end of April 2021). After that, the community will be able to vote on a new distribution model.
7. Will the Rating Score cover all lending platforms I’m using with B.Protocol or just MakerDAO?
At this point in time, each lending platform will have its own B.Protocol users’ Rating Score and its own JAR to be distributed among them accordingly. Once B.Protocol control is handed over to the community new models can be offered by the community.
8. Who’s behind the development of B.Protocol?
B.Protocol is being developed by Smart Future Labs LTD, an Israeli based LTD company, founded by Yaron Velner, ex-CTO of KyberNetwork, who was also part of the wBTC protocol dev team and Smart Pool, the first decentralized mining pool over Ethereum. Yaron holds a Ph.D. in Computer Science from Tel Aviv University.
9. Is it true B.Protocol devs not keeping any Rating Score for themselves?
True. No pre-mining to anyone. Not VCs, Not devs, No one. B. Protocol has a real use case and a real added value for its users, on both sides — Liquidators as well as platform users.
