BoC’s Unique Selling Proposition I: A Comparison with Beefy.
BoC’s Differentiation over DeFi Protocols.
The emergence of the DeFi ecosystem brought the promise of transparency, security, and high interest rates to people all over the world by democratisatising finance and leveraging the weaknesses of traditional systems. One prominent issue with DeFi, however, is fragmentation, as DeFi protocols have been built on a number of fragmented blockchain networks, which lack interoperability.
Multi-chain yield optimisers such as Bank of Chain (BoC) solve this problem by aggregating yield from automated market makers, lending protocols and others, on various blockchain networks. However, the question often comes up, as to how BoC differentiates itself from not just the sea of DeFi protocols, but from other multi-chain yield optimisers such as Beefy.
BoC vs Beefy: Yield Compared.
The major differentiator between BoC and Beefy can be highlighted in the categories, namely; the amount of APY offered, the fee charged, the type of strategy and the strategy selection designator.
Through a selection of high-quality strategies and an aggregation of various state-of-the-art protocols, BoC offers as much as 11% on stablecoin vaults. None of our major competitors offer this much on single asset stablecoin vaults. Less than half this APY is offered by Beefy’s stablecoin vault with the highest APY at 6.55%.
BoC vs Beefy: Strategy Selector.
Another major distinction between BoC and Beefy can be highlighted as regards strategy selection. The BoC strategy selection is algorithmically selected by smart contract which automatically research the best yield among protocols, while the strategy selection for Beefy is by the community, as it operates as a decentralised autonomous organisation (DAO).
BoC vs Beefy: Risk Minimisation.
To differentiate itself, BoC supports multiple strategies to maximise yield and applies diversification methods to provide minimal risk. The best part is beyond offering a higher yield which is virtually “risk-free”, BoC enables users maximise their yield by not charging any fees. As opposed to the vast majority of alternatives including Beefy which charge performance and management fees. With performance fee implementation scheduled for the future, there’s no better time to start with BoC.
BoC vs Beefy: Summary.
To conclude, in comparison to alternatives, BoC charges users no fees, provides the highest returns on stablecoins vaults, significantly reduces risk through state-of-the-art diversification methods and utilises multiple high-quality strategies.
For a more indepth undertstanding of the BoC, please refer to BoC Docs.
