Behodler is a DeFi 2.0 Powerhouse
So, what is DeFi 2.0?
Just another bit of terminology, marketing lingo to stand out and be on the cutting edge, for Behodler it is simply a way to define the next stage of DeFi that attempts to fix the existing weaknesses and leverage the strengths of the current ecosystem. Below we’ll outline the existing challenges faced in DeFi, and outline Behodler’s unique solutions as an answer.
Scalability: Eth fees are too damn high! The fees involved with traditional L1 AMM swaps make a large portion of DeFi inaccessible to the average user. Our medium-term answer to this is our unique single-contract architecture. This allows Behodler to be extremely gas efficient, on average, gas costs on L1 swaps and general operations will be approximately half that of existing major DeFi protocols. Our longer-term answer to this is Layer 2 Behodler, which is an exciting prospect, not only for Behoblins but for DeFi as a whole.
Liquidity: In DeFi, liquidity remains mercenary. Behodler is no exception to this, although with all things considered Behodler is in its infancy. Through the regular forced burning of our universal liquidity token, Scarcity, Behodler’s liquidity floor is constantly rising. Our inbuilt incentive mechanism ensures that as Behodler grows and grows, so too will the rate at which its liquidity floor rises. With time, we will have deeply liquid pools across all of our listed tokens, making trading on Behodler an extremely pleasurable experience for the DeFi community.
Oracle vulnerability: Behodler is not susceptible to price oracle manipulation, because amazingly Behodler is its own oracle. Prices on Behodler are defined algorithmically against Scarcity, and as such Behodler does not need to receive price feeds from external sources. Pretty cool, huh?
Capital efficiency: As explored in the Behodler whitepaper, “while LP tokens provide an incentive to provide liquidity through fee revenue, they do not provide the correct incentives. Instead of pricing liquidity provision at the margin, they instead encourage an aversion to impermanent loss. This leads to a misallocation of capital across DeFi, where innovative projects are undercapitalized and stablecoin pools are overcapitalized. By pricing liquidity at the margin through the universal liquidity token, Scarcity, Behodler offers the first true market for liquidity.”
New innovative projects will be able to achieve deep liquidity through Behodler’s listing dapp, Limbo, with their communities being incentivised not only via Flan but also via Behodler’s inbuilt incentive mechanisms to achieve equilibrium across curves.
Protocol owned liquidity: Another core aspect of DeFi 2.0 is protocol owned liquidity, and the sustainability of farming rewards in regards to paying liquidity providers, which in DeFi 2.0 isn’t necessary since the protocol owns that liquidity.
Sustainability and fairness: Another key separation Behodler has over other liquidity protocols is that Behodler’s governance token, $EYE, does not inflate. Quite the opposite. Behodler needs not to pay rewards in $EYE, our native governance token, unlike the majority of DeFi 1.0 protocols, a process that dilutes early holders. Behodler’s answer to this is Flan, the wonder of which deserves its own article. Or three. You can read the evolution of Flan here, here, and here.
Considering all of the above, Behodler is in a prime position to be a major player in the DeFi 2.0 landscape. We’re excited for the future and very glad you’ll be joining us.
