Hundred Finance integrates B.Protocol as a Backstop for its multi-chain lending platform
First L2 integration for B.Protocol — democratizing Hundred Finance’s liquidation process on Arbitrum to create a stronger safety net for the platform, while unlocking better capital efficiency for its users.
Introduction
Hundred Finance launched its integration with B.Protocol’s backstop, providing a stronger safety net to its new multi-chain lending platform while unlocking greater capital efficiency for its users.
By using a backstop — a liquidity pool dedicated to liquidations — Hundred Finance is democratizing its liquidation process, adding transparency, stability, and capacity to one of the core components of any DeFi lending platform — its liquidation system. Read below for a short overview of the integration and what you can expect next.
The Benefits
With this new integration, Hundred Finance does not only democratize its liquidation system by letting anyone provide liquidity to the backstop, but it also adds another layer of stability to its lending platform. As the backstop facilitates rapid liquidations in a transparent and automated way even in sub-optimal market conditions, it also opens up the option for greater capital efficiency in the form of higher collateral factors (aka Loan-to-Value) and better liquidation thresholds.
Backstoppers, the Liquidity Providers to the backstop pool, earn both HND rewards, as well as any profits made by liquidations on the platform.
How to
Backstoppers can now deposit USDT and USDC to the Hundred Finance Backstop pool. Deposits can be made through the Supply Markets marked by the B.Protocol logo. The Backstop deposits are entitled for HND rewards.
These backstop deposits will support liquidations for USDC and USDT loans that were made against ETH collateral.
Selecting one of these two assets from the Supply markets, will then open a special deposit interface featuring a Backstop tab. This tab can be used to approve the relevant token, make deposits and withdrawals, as well as observe total value locked and the APR for added liquidity.
This APR is provided through HND token rewards, which are to be set at 5k HND per week split across the USDC and USDT pools, meaning 2500 HND per pool. This emission rate, owing to it being designed to achieve an adequate TVL to efficiently carry out liquidations, will be subject to adjustment.
What’s a Backstop
B.Protocol introduces a new DeFi primitive — the Backstop — a users’ liquidity pool which is dedicated to liquidations. Users can deposit assets into the backstop pool, and these funds will be used to repay the debt of any vault or position which is needed to be liquidated, in return for its (discounted) collateral.
The discounted collateral that got seized during the liquidation is then automatically being sold back to the asset that was used for the liquidation, and re-deposited with any accrued profits back into the backstop pool for future liquidations. The collateral sale is being made through the B.AMM, the novel Backstop AMM which was designed by B.Protocol and is optimized for liquidations, including those of large size positions.
About Hundred Finance
Hundred Finance aims to play a central role in provisioning lending and borrowing services in the multi-chain DeFi environment that has flourished since early 2021, delivering the freedom to earn yield and borrow assets to a growing number of users in a trustless, secure and economically efficient manner. Hundred Finance is currently deployed on Ethereum mainnet, Arbitrum, and Fantom.
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About B.Protocol
B.Protocol is building a Backstop DeFi primitive, unlocking higher capital efficiency in the ecosystem. By democratizing liquidation systems it shifts MEV and bot profits to the hands of the community.
Lending platforms that integrate with B.Protocol democratize their liquidation system, provide a stronger safety net to their lenders, and enabling higher collateral factors for its borrowers.
With B.Protocol, anyone can participate in the lucrative business of liquidations, tapping into the $1B/Year market of DeFi liquidations, on its growth path to the $100B/Year of liquidations made in CeFi.
