The BET Framework

The BET framework BORROW - EARN - TRADE

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Borrow:

  • discover the best place to borrow against your preferred asset

  • manage all borrowings in one place

  • option 1: when wanted or needed, use Concrete to purchase a credit line that will protect you from liquidation

  • option 2:

  • manage all credit utilization and review previous borrowing history

  • earn $CNCT rewards based on volumes + credit payment behaviors

Earn:

  • discover where your assets will derive the most yield and frictionlessly deposit them

  • manage multiple LP positions from one place

  • earn $CNCT rewards for volume and term

Trade:

  • only available for QE's (earners with >$10k in LP deposits)

  • determine what $ value of LP deposits should be made available for liquidation funding

  • enter in to 48-72 hour auctions on the first of every month to purchase c[Token]'s

  • c[Token]'s are nominal in cost, but represent a $ value of underlying credit that would be needed to protect a user from liquidation

  • i.e. 1 x c{ETH} might represent $1000 of credit obligation that the holder of the c token would have to fund from their LP deposit should there be a claim

  • c token holders are entitled to the lion's share of the yield generated from the interest and fees generated by credit obligations

  • bidders in auctions are also guaranteed a % of account fees already accrued meaning that there will always be some yield from bidding at auction

  • a c token holder can sell c tokens, or buy more during the month as they approach expiry

  • sale/purchase of c tokens operates like an NFT marketplace where an individual can tender the credit obligation they hold for a floor price or accept bids

---Marketing lenses:

  • Frens don't let frens get rekt

  • Reduce the pain/cost of liquidation

  • Durability in volatility

  • peer to peer credit derivatives market

  • enhanced yield and reduced costs for LPs and Borrowers

User types:Borrowers:

  • DeFi natives - unlikely early launch attracts retail

  • likely already used/familiar with main money markets

  • After embedded partnerships, this will likely change

  • Some larger groups/funds/desks may borrow through for the credit option + farming

Earners:

  • full gamut of users here, but most interested in large whales and desks

  • if we reduce the QE threshold then obviously opens up to more characters

Traders:

  • binary - sophisticated market participants (desks/funds etc) or degens who want to arb positions on frequency of yield forecast changes

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