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"Burrow (BRRR) launched on March 29th, and it is a decentralized lending platform on the Near mainnet. Borrowers and lenders conduct transactions through liquidity pools, and the interest rates for each loan and borrowing are determined based on the supply and demand of the pool, similar to the lending protocol Compound on Ethereum.
Burrow aims to increase the utilization of users' funds by unlocking the liquidity of ""interest-bearing assets."" ""Interest-bearing assets"" can be understood as assets that generate income and are typically acquired through staking native assets on a blockchain. You can think of them as deposit certificates or receipts obtained from staking native assets, and some refer to them as tokenized ""interest-bearing bonds.""
Burrow allows users to convert their ""base assets"" into interest-bearing assets, use these interest-bearing assets as collateral to borrow other assets, and maximize the efficiency of fund utilization through cyclical lending. For example, if users hold NEAR, they can stake it on the Metapool platform to earn approximately 11% interest annually. Then, they can deposit staked NEAR into Burrow to earn interest income or use staked NEAR as collateral to borrow other assets.
Similar to Aave, a lending application on Ethereum, Burrow also employs ""over-collateralization"" to maintain the safety factor of assets and keep them within a healthy range. For each asset's collateralization ratio, Burrow introduces the concept of asset volatility, where each asset has its own characteristic price fluctuation range, and volatility is calculated based on this range. When other factors are stable, using assets with higher volatility as collateral results in lower fund utilization.
On March 29th, Burrow announced its launch on the Near mainnet and completed a $5 million funding round the following day, with investors including Dragonfly Capital, ParaFi Capital, IOSG Ventures, and others.
Currently, Burrow supports users to deposit assets such as NEAR, stNEAR, ETH, USDC, USDT, DAI, and wBTC to earn interest or use them as collateral to borrow needed assets.
As of April 21st, Burrow has $432 million in deposits and $281 million in loans." |
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Post time 17-10-2023 15:03:25
