Skip to main content

What is BaksDAO: The Review of the Project and Its Opportunities

The decentralized finance (DeFi) market opens up plenty of opportunities for earning, as well as cutting costs on loans and reducing transactional costs. At the same time, many users face issues upon attempting to transfer to new instruments. For example, very often entering into DeFi platforms is accessible only to tech-savvy people. This and many other problems of the decentralized finance field were solved by BaksDAO developers. Let’s dive deeper into its features and growth opportunities.

What is BaksDAO

BaksDAO is a multifunctional decentralized finance (DeFi) platform that among other things, allows users to get loans against crypto assets. Also, BaksDAO provides users with instruments to get passive income through providing assets for lending. The key mission of the project is to simplify the entrance into the DeFi market.

To newbies, the decentralized finance market can appear complicated. Lack of drive for new technologies results in missed opportunities. For example, the DeFi market offers way more favorable terms for credits than banks. This being said, there is no need to follow verification procedures or wait for the financial organization’s approval. It is enough to send a request from the comfort of your coach and you get an instant transfer of the money.

The DeFi principles help to create a transparent market. In such a market, people would not have to trust middlemen, the role of which is currently played by traditional banks and other credit organizations. The BaksDAO developers used this and many other advantages of decentralized finance to create the platform.

Technical aspects of BaksDAO

The project is built on the blockchain of the popular cryptocurrency exchange Binance – Binance Smart Chain (BSC). The chain of the trading platform, in comparison with its main competitor – Ethereum, offers its users low commissions and high speed of transactions. Choosing BSC made BaksDAO more lucrative and quicker. In the future, developers also plan the integration with Ethereum and Polygon to broaden the audience.

The platform is fully decentralized. It is governed by BaksDAO users with BDV tokens which give voting rights in the project ecosystem. In other words, BDV tokens allow decentralized voting that is needed to make independent decisions about the development of the platform.

Also, the project has its stablecoin BAKS. Its exchange rate is pegged to the US dollar 1:1. This financial instrument helps to solve the problem of the high volatility of such traditional cryptocurrencies like bitcoin while keeping all advantages of the digital assets. The BAKS exchange rate is corrected by the project stabilization fund.

Schema:

  • Smart contract checks the exchange rates of the collateralized coins
  • Smart contract accesses the collateral value in sync with new exchange rates
  • Is the number of issued tokens BAKS equal to the collateral value on smart contracts?
  • Is the value of BAKS issued tokens higher than collateral?
  • Smart contract burns a portion of BAKS tokens
  • Smart contract emits additional BAKS tokens

The BAKS emission correction algorithm of the project’s stabilization fund. Source: the BaksDAO whitepaper

The developers fully automated BaksDAO. To achieve this result, the team used a system of oracles Chainlink and smart contracts.

Important! To start working on BaksDAO, users need to connect MetaMask to the platform. MetaMask is one of the most popular wallets in the crypto community.

What differentiates BaksDAO from other DeFi players

Even though the market is full of DeFi projects, the BaksDAO team succeeded in grasping investors’ attention due to several distinctive features. Let’s explore them in detail:

  1. Favorable and convenient credit terms

Developers provide users with alternative rules for credit processing. For example, it is possible to get loans with an open-date pay-back period on the BAKS platform.

Also, the discount system is available for BaksDAO users. When a user pays back the loan in BDV tokens, the annual interest rate drops from 11% to 5%. The developers emphasize that paying back is also possible in parts.

  1. Intuitive interface

The intuitive interface of BaksDAO platform helps users to seamlessly request loans or use other platform’s instruments for getting passive income.

Important! A video tutorial on how to start using the platform is available on the BaksDAO website.

  1. Lucrative terms for big investors

BaksDAO users have access to transparent solutions for capital management. Those instruments, according to developers, allow users to keep control over their assets without forgoing the potential profits.

  1. Effective investment and social promo mechanisms

Roughly 50% of the BaksDAO profits are invested in burning BDV tokens and eco-projects. This approach forms a base for the long-term financial development of the platform and increases its sustainability, as well as puts it into a category of socially impactful businesses.

  1. Multi-functionality

Apart from credits and earnings on deposits, BaksDAO offers its users instruments for crypto exchange. The service for liquidity injecting is also under development.

Important! At the beginning of January 2022, the project successfully passed the safety audit by Solid Proof.

Summary

The BaksDAO has solved several customer pain points that were previously a barrier for entering the DeFi market for many potential users. For example, the developers offered an intuitive and user-friendly interface on a platform.

The BaksDAO instruments allow users not only to get loans but also earn by providing assets for credits. In the future, the functionality of the platform is going to grow.



from NewsBTC https://ift.tt/I45p8Oxa6
via IFTTT
Labels:

Comments

Post a Comment

Any questions, Please.

Popular posts from this blog

How to play and earn in CryptoKitties

CryptoKitties is a blockchain-based game where players can buy, sell and breed digital cats with unique attributes. Reminiscent of Tamagotchi and Pokémon, the wildly popular digital pets and creatures of the 1990s, CryptoKitties is a blockchain-based game where players can collect, trade and breed digital virtual cats. CryptoKitties was the first Ethereum-based game, and its popularity underscored many of the network’s scaling issues. This digital cat-breeding blockchain game caused quite a bit of congestion on the Ethereum blockchain, peaking in 2020. However, the game’s creators were able to address these issues. What is CryptoKitties? Launched in 2017, CryptoKitties was built by Dapper Labs, the company that uses blockchain technology to bring nonfungible tokens (NFTs) and new forms of digital engagement to fans around the world. CryptoKitties is also considered one of the world’s first-ever blockchain games. In the game, each one of the digital collectible cats possesses a
Post a Comment
Read more

Bitcoin dominance falls under 40%

While Bitcoin critics claim this means that BTC is losing its first-mover competitive advantage, others are anticipating the “altcoin season” is just around the corner, or might even be already underway. Bitcoin’s market dominance has continued to fall, bottoming out below 40% this week. That’s very close to the all-time low of 36.7% in Jan 2018 according to data from Tradingview. Bitcoin ( BTC ) market dominance refers to the ratio between BTC’s market cap and the total crypto market cap. It's not the first time dominance has dipped in 2021. Back in May, Cointelegraph reported that BTC had dipped to represent just 40.3% of the combined crypto asset capitalization, according to Coinmarketcap, and it neared the same level again in September.  Bitcoin critic and Europac chairman Peter Schiff tweeted about the event on Dec 29th, saying that it’s indicative that BTC is “losing its first-mover competitive advantage.” With over 16,000 alternative cryptos to choose from Bitcoin
Post a Comment
Read more

Five Bitcoin Price Charts Analyzing The Dramatic Q1 2022 Conclusion

There are only hours remaining until the Q1 2022 close in Bitcoin price action. With the important quarterly candle set to close tonight, let’s look at what technicals might say about the direction of the next quarter. Q1 2022 Comes To A Close For Bitcoin The first quarter of a year, often sets the tone for the year to come. In investments, a poor Q1 performance is indicative of a bad year ahead. Considering the fact that Bitcoin price is now above $45,000 after touching $32,000 this quarter, it is tough to say the performance has been “poor” by anything other than crypto standards. Related Reading | Bitcoin Weekly Momentum Flips Bullish For First Time In 2022 The cryptocurrency has recovered nearly 40% from the low, leaving a long wick behind. Such a long wick suggests that before the quarter came to a close, buyers stepped up in a major way. Buyers were able to step up in a larger capacity in Q1 2022 than bears were able to in the final quarter of last year. The bearish wick to cl
Post a Comment
Read more