B.Protocol is developing a Backstop liquidation engine that enhances capital efficiency for DeFi lending platforms by allowing communities to manage liquidations without relying on third-party flashloan bots. Their Pythia risk oracle provides standardized on-chain risk ratings, enabling users to make informed investment decisions and mitigate economic risks in decentralized finance.
Funding
$2.2M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
Founders
Product
Problem
DeFi lending platforms rely on third-party flashloan bots and DEX liquidity for liquidations, creating dependencies and potential inefficiencies. This reliance can lead to missed liquidation opportunities and bad debt accrual. Furthermore, the lack of standardized on-chain risk ratings makes it difficult for users and DAOs to make informed investment decisions.
Solution
B.Protocol offers a suite of tools for DeFi risk management, including Backstop, a liquidation engine that allows communities to manage liquidations and earn profits from clearing risky positions. Backstop detaches lending platforms from reliance on external entities by enabling users to deposit funds into backstop pools, which are then used to execute liquidations. The seized collateral is automatically put up for sale, and the returns are deposited back into the pool, accruing profits for liquidity providers. B.Protocol also provides Pythia, a decentralized network of validators that provides standardized on-chain risk ratings for platforms and assets in the DeFi space, enabling DAOs to enforce investment policies and yield strategies to automatically restrict risk tranches.
Target Audience
The primary target audience includes DeFi lending platforms seeking to mitigate liquidation risks and DAOs aiming to enforce risk-aware investment strategies.
Features
- Backstop AMM (B.AMM) enabling users to deposit funds into backstop pools for liquidation participation
- Automated liquidation execution and collateral sale via smart contracts
- Profit accrual for backstop pool participants from liquidation proceeds
- Pythia: a decentralized network providing on-chain risk ratings for DeFi platforms and assets
- RiskDAO: a sub-DAO providing open-source risk assessment frameworks, audits, and dashboards