24-Hour Countdown & Step-by-Step Guide to using Beta Finance Phase 1
24 hours left until Beta Finance Phase 1 launches on Ethereum Mainnet on August 18 at 10 AM EST/2 PM UTC! The dApp will be live here, and early users will be receiving retroactive BETA rewards for interacting with the protocol. We are excited to announce that the Beta Verified Markets we will be supporting during our Phase 1 launch will be ALPHA, UNI, SUSHI, MATIC, LINK, BAND, BAL, BNT, SNX, YFI, CREAM, WBTC, ETH, USDC, USDT, and DAI. This means if you interact with any of the markets listed through lending, borrowing, or shorting, you will receive a sizable retroactive BETA rewards! We will be gradually rolling out the Beta Verified Markets to the community the first few days of our launch. In this article, we explain how users are able to initiate positions with a simple Step-by-Step guide to lending, borrowing, short selling, and managing their positions.
Beta Finance Verified Markets
Beta Finance Verified Markets are tokens that have been evaluated to be safe for users to interact with. These markets receive support from Beta, and users are incentivized to interact with these markets. Supporting these tokens as Beta Verified Markets signals the beginning of our desire for long-term partnerships and integrations. Immediately upon launch on August 18, in addition to WBTC, ETH, USDC, USDT and DAI, the first live Verified Markets will be ALPHA, UNI, and SUSHI. At the start, Uniswap and Sushiswap are the DEX protocols Beta Finance has integrated with to perform swaps for users, and Beta Finance is the first incubated project of Alpha Launchpad.
On Thursday August 19, MATIC, LINK, and BAND markets will go live. In addition to supporting MATIC token, Beta Finance is looking to scale our protocol to Polygon, where users are able to interact with the protocol with fast transaction times and low gas fees. For Chainlink and Band Protocol, all of our Verified Markets also use these two price oracles via Alpha Oracle Aggregator to ensure the most robust price feeds for our initial Verified Markets.
On Friday August 20, BAL, BNT, and SNX markets will go live. We are excited to have the leading trading protocols as Verified Markets, and are interested in the synergies DeFi users can unlock by using these protocols with Beta.
On Monday, August 23, YFI and CREAM markets will go live. Like Beta, these protocols enable users to generate yield on their holdings, putting capital to work! We’re looking forward to what new DeFi strategies users come up with using Beta Finance to maximize their yield!
Lending
Lenders will be able to lend assets for any money market that exists on Beta Finance to earn additional yield from the lending interest rate. Interest is paid to lenders from the borrowers and short sellers who pay the borrow interest rate, for borrowing assets for leverage or short selling assets for trading and DeFi strategies. There is a single lending pool for each token, so lenders are guaranteed to be earning the maximum possible yield on Beta Finance for their deposited token at all times.
There are 2 simple steps for lending crypto assets on Beta Finance.
- Select the token money market for which you would like to and click the “Deposit” button. Users will also be able to search for specific tokens by contract address.
2. Enter the amount of the underlying token you wish to deposit for lending, and receive bTokens from your deposit.
Borrowing
Borrowers are able to use ETH, USDT, USDC, and DAI as collateral to initiate borrow positions on Beta Finance. When initiating a borrow position, the loan-to-value (LTV) ratio must be below the safety thresholds defined in the risk parameters for the asset tier of the borrowed token.
To initiate a borrow position on Beta Finance, users follow 3 simple steps:
- Select the token money market for which you would like to and click the “Borrow” button. Users will also be able to search for specific tokens by contract address.
2. Select the supported collateral you wish to use from the dropdown and enter the desired amount you wish to use for your position. In addition to metrics, the dApp provides convenient buttons that populate fields based on percentages of your current collateral holdings for collateral amount, and percentage of collateral for borrow amount.
3. Click the Borrow button to initiate the position.
Short Selling
Short sellers are able to use ETH, USDT, USDC, and DAI as collateral to initiate short positions on Beta Finance. Short selling on Beta Finance works leveraging a Borrow on a Beta money market and immediately selling the borrowed token to the collateral used, and thus follows the same collateral and LTV requirements as initiating a Borrow position.
For short sellers on Beta Finance, there are 3 simple steps to follow to initiate a position:
- Select the token money market for which you would like to and click the “Short” button. Users will also be able to search for specific tokens by contract address.
2. Enter in the amount of collateral to be used and the amount of token to be shorted. Beta will directly provide metrics, such as the LTV, slippage, and price impact directly in the interface for you. Beta will also calculate the best DEX (Sushiswap or Uniswap) to swap through by default.
3. Click “Short”.
Managing Positions
By navigating to the My Positions tab at the top of the navigation bar, users will be able to see a dashboard that enables them to easily manage their positions. Through the dashboard, lenders will be able to update their deposits or withdraw their lended assets. Borrows and short sellers will be able to add additional collateral to their positions by clicking ‘Refill’ and close or decrease their positions by clicking ‘Repay’.
Refilling
Refilling on Beta Finance means to add additional collateral to a current borrow or short position. Users are able to add more of the existing collateral used to the position in order to decrease the loan-to-value (LTV) percentage to avoid liquidation.
To add additional collateral to an existing position follow 2 simple steps:
- Select the position you want to add more collateral to and click “Refill”.
2. Enter in the amount of collateral you would like to add, and click “Refill”. Metrics regarding the change in LTV after the added collateral are available directly in the UI.
Repaying
Beta Finance will enable users to either repay their debt using the collateral or borrowed/shorted token. When repaying with the borrowed/shorted token, users will need to specify the amount of borrowed/shorted token to repay. When repaying with the collateral asset, Beta will automatically deduct the full debt from the collateral and execute a swap on a DEX to obtain the borrowed/shorted asset for repayment on behalf of the user.
For repaying with borrowed/shorted token:
- Select to pay with the borrowed/shorted token and enter the repay amount. The debt does not have to be fully repaid when directly paying with the borrowed/shorted token.
2. Click the buttons to approve the token for repayment and repay the debt.
For repaying with collateral:
- Select “Pay with Collateral” on the right side. When repaying with collateral, Beta Finance will automatically use the collateral associated with the position to swap to the borrowed/shorted token through the optimal DEX to repay your debt.
2. Click the button to repay your debt, close your position and retake your collateral.
Liquidations
Liquidations occur when the loan-to-value (LTV) of a position exceeds the liquidation threshold for the asset tier. This may occur if the value of the collateral fluctuates and/or the value of the borrowed asset increases in price. It is important that liquidations occur to ensure healthy function of the money markets. Liquidators are able to liquidate at most 50% of the debt in a single liquidation call, and will receive a liquidation bonus upon successful liquidation that varies by asset tier.
Next Steps
There are only 24 hours until Beta Finance goes live at https://app.betafinance.org! We’ll continue to keep the community updated through our socials, so be sure to follow us on Discord, Twitter, and Telegram!
We are hiring!
Beta Finance is looking to expand our team and is actively hiring. If you are passionate about DeFi and excited to build the next generation of infrastructure for DeFi, we’d love the chance to learn more about you! Whether you’re a Solidity developer, Web3 magician, business development & marketing, or DeFi strategy specialist, please reach out to careers@betafinance.org.
