On March 31, Cointelegraph China conducted an online interview with Bagels Finance Product Architect Fox Lee, Marketing Director Emily Sit, and Financial Advisor Eric Wang to attend the weekly hub event.
During the event, the Bagels Finance team announced that it is developing the first cross-chain leveraged yield farming protocol for decentralized finance and believes the future of DeFi is bright. While several new products such as algorithmic stablecoins and smart pools have been developed, he believes Bagels Finance is heading in the right direction for the future of decentralized finance.
Lee said that Bagels Finance is deployed on the Heco and Binance smart chains, and that there is also a leveraged liquidity mining cross-chain lending arrangement on the second layer of Ethereum. Bagels’ platform integrates various popular liquidity mining strategies and provides users with up to 10x leverage mining revenue through mortgage allotment.
According to Lee, Bagels’ main agreement is a leveraged lending agreement, so the user’s deposit rate will be higher than that of the lending platform with an excess mortgage because Bagels’ deposit pool allows the user to borrow more money. The maximum utilization can be up to 99%.
In addition, Lee went on to say that Bagels has non-destructive and leveraged mining. In this way, deposit yields will be higher than those in the market and borrowers’ lending rate will be lower than those in the market. Moreover, leverage can increase mining income by 10x, which meets the needs of depositors and miners in the market. This is just the demand of the current market.
Lee also believes that liquidity mining is here to stay in the DeFi ecosystem and the number of assets that allow for liquidity lockup is constantly growing. He pointed out that there are two types of people in the overall DeFi market: one is the depositor aiming for a high interest rate, the other is the miner aiming for a high APR. He explained that the Bagels platform can meet the needs of these two types of people at the same time. He explained the following:
“Bagels users can not only earn high deposit interest rate and high mining earnings, but also non-destructive deposit mining earnings and leveraged transaction mining earnings.” Depending on the proportion of deposits and borrowed money, they can select the appropriate bagel Received Governance Token Reward.”
According to the team, in the design of the token economy model, 60% of Bagels tokens will be used for mining loan transactions and LP liquidity; 7% is used for environmental incentives and airdrops; and 40% of the revenue of the entire Bagels platform, including interest margin revenue and transaction fees, will be returned to Bagels as long as users pledge bagels in the DAO smart contract.
All coin holders in the DAO governance community can receive 40% of platform earnings as dividends daily, while 20% of platform earnings daily are used to buy back and destroy those dividends.
Users with money can commit Bagels to participate in the DAO’s decentralized governance, become members of Bagels’ board of directors, and receive 40% dividends of the platform’s earnings.
20% of the platform’s revenue is used for bagel token repurchase and destruction, thereby decreasing the circulating supply of bagels and increasing the market value of bagels. Bagels Tokens may increase in value through repurchase and destruction; “Board dividends can attract more coin holders, tie bagels to the DAO board, reduce market circulation while making coin holders shareholders of the bagels platform, boosting their trust in bagels and preaching for bagels in the world,” said Lee.
Lee announced that the Bagels smart contract has entered the code review phase by an authoritative testing body. The code review is expected to be completed before April 10th and the Bagels v1 testnet will then be launched in mid-April. A week after the test, the mainnet will be launched.
When Bagels was deployed on BSC, the token was launched on PancakeSwap for trading, and when it was deployed on Heco, the token was launched on MDEX, Lee said. Bagels v2 will be launched in mid-May and two new smart contracts will be added. One of them is a DAO smart governance contract that allows users to become a member of the DAO board and receive platform profits and dividends.
The other is a new version of a leveraged liquidity mining loan agreement that allows users to pledge the LP token received from the liquidity pool as collateral for mining leverage. Dokodoa’s cross-chain aggregation agreement will be officially launched at the end of May to connect Ethereum, BSC and Heco digital assets, realize cross-chain transfers, cross-chain liquidity mining and cross-chain smart pools.
Sit told Cointelegraph China that Bagels has completed the first round of institutional funding. The participating institutions are well-known crypto funds in North America, China, Hong Kong, South Korea and Singapore. She also revealed that important partnerships are being built. She added:
“We are discussing a strategic collaboration with Alchemix, a popular overseas project in China called Alchemy […] Now, the liquidity of the capital pool is set at $160 million as Dokodoa’s cross-chain arrangement allows Bagels to provide better depth of Alchemix liquidity, allowing Bagels platform users to earn ALCX token rewards.”
According to Wang, Bagels’ core team is from Merkle Labs, and Bagels’ finances are also deeply developed and technically supported by Merkle Labs. Merkle Labs focuses on research and development of DeFi products. Since the beginning of 2020, the company has developed more than 40 DeFi products, including a decentralized exchange, debt financing, an income aggregator, liquidity mining, an algorithmic stable currency, a cross-chain agreement and non-fungible tokens.
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