On June 7, Backd, a Reactive Liquidity Decentralized Finance (DeFi) protocol, announced it had raised $3.56 million in its latest funding round led by Advanced Blockchain AG. Notable investors included Spartan Group, Maven 11, Struck Crypto, Apollo Capital and Divergence Ventures. The raise marks a major milestone for Backd to bring reactive liquidity to DeFi.
Backd maximizes the performance of DeFi users’ assets by deploying reactive liquidity pools where users can increase asset utility and efficiency. This is possible with Backd’s central protocol architecture, which includes liquidity pools and actions for yield aggregation, allowing users to generate composite returns and autonomously delegate liquidity to external protocols when it is most efficient.
Reactive liquidity solves the problem of static or single utility liquidity pools that are common in DeFi today. Liquidity is static when it serves only one function at a time, meaning when users commit assets to a log they realize the opportunity cost of not allocating assets elsewhere.
Backd’s reactive liquidity is changing the way DeFi users earn returns and execute DeFi transactions. By depositing funds into backd pools and registering promotions, users can always earn until those funds are more efficient elsewhere.
On backd, users first provide liquidity to pools to automatically compound earnings. They then register actions on their backd liquidity provider token to automatically delegate a portion to an external position when needed. Registering actions is optional: users can use backd as yield farm or make their liquidity reactive with registered actions.
On March 16, Backd’s first phase went live on mainnet with the release of its yield-aggregating liquidity pools, currently supporting Dai and USD Coin (USDC) deposits. From initial deployment to now, both have had an average APY of 11%.
The protocol was also phased in, with additional audits being conducted to secure the protocol. In the coming weeks, Backd will remove pool deposit caps and launch its first action: collateral top-ups to allow DeFi users to earn high returns while protecting their loans from liquidation. Backd Collateral or Liquidation Protection top-ups are introduced with Aave and Compound (COMP) support. Additional protocols will be supported soon.
Backd’s design knows no bounds to the strategies and actions that can be implemented. Following the launch of its actions feature, Backd releases its long-awaited governance token, where token holders can propose and vote on strategies, new actions, and general protocol updates.
Backd has a growing community that accepts contributions from all levels. If you are interested in future reactive liquidity, join the community on Discord.
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