What is Beta Finance (BETA)? Should you invest in BETA?

Beta Finance (BETA) is a very hot name recently, after Binance announced that BETA is the 21st project to join the Binance launchpad. Surely you do not forget the tremendous growth of projects that have launched on Binance before such as Polygon Network (MATIC), BAND Protocol (BAND), Celer (CELR), … or most recently, the success of Coin98 ( C98). Therefore, the community is currently looking forward to the upcoming IEO event, the name of BETA’s Binance exchange.

However, not everyone knows what Beta Finance is, what projects are outstanding, should invest in BETA or how to join Binance launchpad? This article will help you to solve the above questions.

What is Beta Finance?

Beta Finance is a cross-chain money market protocol that allows DeFi users to access the crypto market in an easy, fast and scalable way. Users can act as borrowers, lenders, traders and liquidity providers to earn profits. In particular, Beta Finance offers short-selling that allows users to short sell assets that they think will drop in price in the future.

Functions of Beta Finance

Users can lend assets to any money market that exists on Beta Finance to earn extra profit from lending interest. Lenders receive interest from borrowers and from short sellers pay interest on borrowing to be able to borrow assets for leverage or short-sell assets to trade. There is a unique lending pool for each token, so lenders are always guaranteed to earn the maximum possible return on Beta Finance for their deposited tokens.

Assets deposited on Beta Finance’s money market are managed as an ERC-20 token balance. Upon deposit, the lender will receive bTokens, which represent the lender’s stake in the interest accrued share of the underlying token.

Users can use supported collateral to initiate loan positions on Beta Finance. When initiating a borrowing position, the loan-to-value (LTV) ratio must be below the margin of safety defined in the risk parameters for the borrowed token’s asset class.

The initial position requested below the safe LTV threshold is to protect users from immediate liquidation. Debt Share Value represents the borrower’s outstanding amount of tokens and is the principal amount borrowed plus accrued interest payable. Collateral size is the amount of collateral posted for the position. For example, let’s say you used 1000 USDC to initiate a borrowing position on a class A asset. With the current mechanism, you will be able to borrow up to 0.9 * 0.65 * 1000 = $585 worth of that asset at the start of a position.

Users can use supported collateral to initiate short positions on Beta Finance. Short selling on Beta Finance is essentially taking advantage of a Loan on Beta and immediately selling the borrowed token, thus subject to the same collateral and LTV requirements as a loan.

Short sellers will interact with Beta Finance’s “1-Click Short” tool. Users only need to enter the number of tokens, the short sale order will be executed. They won’t need to care how the mechanism behind works.

However, the operation process will take place more complicated. When a short order is executed, Beta Finance will borrow the underlying token from the respective money market to the short seller and check if their collateral is sufficient. The borrowed token is then swapped through a designated DEX (currently supporting Sushiswap, Uniswap V2, and Uniswap V3) into collateral tokens to be used. The newly swapped collateral token is then staked with the primary collateral used in the short position.

Users can easily view and manage all their lending, borrowing, and short positions on Beta Finance’s interface including an overview of important metrics, including APY, position amount, interest rate, debt and loan-to-value (LTV) ratios.

Short users will be able to repay with the base token or directly with the collateral associated with the position. Closing a position with the click of a button without leaving the Beta Finance protocol provides a seamless, integrated user experience.

Highlights of Beta Finance

  • “1 Click” Short Tool provides a simple, integrated tool to allow DeFi users to short sell in an automated trade. Users can view relevant metrics (price impact, slippage, etc.) directly on the interface, and easily manage and update their positions on the dashboard.
  • Permissionless Currency Market (no permission required). Beta Finance allows users to create a money market for any ERC-20 token automatically, supporting long assets. Anything from fractionated NFTs to mature tokens can be listed on Beta Finance.
  • Isolated collateral model (isolated). This model has the function of backing volatile assets, Beta Finance offers an isolated collateral model in which the user is only responsible for collateral explicitly linked to a location.
  • User friendly. Beta Finance focuses heavily on user experience and provides a beautiful design for a user-friendly and user-friendly experience for new and long-time DeFi users.
  • Optimized trading. Beta Finance by default calculates the most optimal trade on all integrated DEX exchanges when initiating a short position.

Project development roadmap

Updating…

Project development team

Updating…

Investment funds

Beta Finance has partnered with Spartan Group, ParaFi Capital, Multicoin Capital, DeFiance Capital and Delphi Digital as strategic investors to build next-generation infrastructure and tools in decentralized finance. Especially Beta Finance is the first project to be on Alpha Launchpad – Alpha’s IDO platform.

Tokenomics

Basic information about the BETA token token

  • Token Name: Beta Finance
  • Ticker: BETA
  • Blockchain: Ethereum
  • Token Standard: ERC-20.
  • Contract: Updating…
  • Token Type: Utility and Governance
  • Total Supply: 1,000,000,000 BETA
  • Circulating Supply: Updating…

Token Use Cases

Beta is Beta Finance’s native utility and governance token. BETA is used in Beta Finance with the function:

  • Encourage staking: BETA token holders will be able to stake their tokens on the protocol and act as a means of support to protect shortfall events. BETA holders staking their tokens will receive a portion of the revenue generated by the protocol.
  • Liquidity Mining: Liquidity providers can place their assets in lending pools to enable borrowing and short selling. To incentivize these providers at an opportunity cost, liquidity providers will be eligible to receive BETA tokens through a liquidity mining program, adjusted based on the relative contribution of the users. use and additional parameters.
  • Governance (Governance): BETA token holders will be able to participate and vote in the platform’s governance process. Through administration, users can influence and modify the product features and key parameters of Beta Finance. This will allow BETA token holders to influence the direction of the protocol’s development.

BETA Token Allocation

  • Sell ​​on Launchpad Binance: 5%
  • Seed Round: 10%
  • Strategy Round: 5%
  • Sell ​​on Launchpad Alpha Finance: 5%
  • Team and Mentors: 20%
  • Ecosystem development: 35%
  • Provide liquidity: 20%

The Beta Finance development team holds its funds in crypto, stablecoins, and fiat. Money is stored using multi-sign cold wallets and USD bank accounts. Any fund movement requires the approval of at least 3 of the 5 executives and advisors of Beta Finance.

BETA token distribution roadmap

Token Sale of Beta Finance on Binance Launchpad

Basic information

  • Hard Cap on Launchpad: 3,000,000 USD
  • Hard Cap per User: $20,000 (333,333.33 BETA)
  • Number of tokens distributed on Binance Launchpad: 50,000,000 BETA (5% of Total Token Supply)
  • Public Sale Price: 1 BETA = 0.06 USD (paid in BNB, price is determined before registration)
  • Form of sale: Register
  • Supported payment methods: only BNB

Binance Launchpad User Guide

Registration time

  • Preparation time: From 00:00 AM on September 30, 2021 (7 AM Vietnam) to 00:00 AM on October 8, 2021 (7 AM Vietnam time): During this period, users’ BNB balance will be estimated in hourly snapshots per day and over 8 days. Your last daily average BNB balance for these 8 days will determine the maximum amount of BNB you can commit to buy tokens later.
  • Registration time: At 6:00 AM (UTC) October 8, 2021 (13:00 Vietnam time) to 10:00 AM (UTC) October 08, 2017 (17:00 GMT): Registration will open at this time for all all eligible users within a 4-hour period. Users must also sign the Token Purchase Agreement at the same time, before committing their BNB. Please note that once committed, your BNB will be locked and you will not be able to redeem or access any other functions such as transfers, withdrawals or trading until the token is distributed. Final.
  • Token distribution time: At 10:00 AM (UTC) October 8, 2021 (17h Vietnam) to 11:00 AM (UTC) October 8, 2021 (18h Vietnam): Registration ends and allocation calculation token starts.
  • Final token distribution at 11:00 AM (UTC) October 8, 2021 (18:00 GMT): Your final token allocation will be calculated and the corresponding BNB will be deducted from your locked BNB amount. Once deducted, both your BETA and BNB tokens will be transferred to your spot wallet.

Instructions to register for a Binance exchange account

Community

  • Website: https://betafinance.org/
  • Twitter: https://twitter.com/beta_finance
  • Medium: https://medium.com/beta-finance
  • Telegram: https://t.me/BetaFinanceProtocol
  • Discord: https://discord.com/invite/kcecQQRyZJ

summary

The above is all information that GTA Research team has researched about Beta Finance (BETA) and is not investment advice. Hope this article will help you get the necessary information and give your personal opinion about the project.

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