Welcome to Bao Finance

Bao is grassroots, community-run, VC-free, and decentralization maximalist. We are building onchain tokenized derivatives, compatible with all of DeFi. The sheer scope of the derivatives market is staggering. According to the Bank of International Settlements, the notional value of all active contracts worldwide surged to an astounding $2.5 quadrillion by the close of 2022. To put this into perspective, this amount is more than 30 times the total global GDP, highlighting the immense size and influence of the market on the world's financial landscape.

Decentralized, on-chain derivatives offer increased accessibility, reduced counterparty risk, enhanced transparency, lower costs, 24/7 trading, and improved security. Best of all, on-chain tokenized derivatives, or synthetics, can be created from any data feed, meaning the use cases go far beyond the already vast ones from traditional markets. Bao will transform the way we leverage and interact with information. Markets and Data will be accessible and actionable for everyone, moving the power of information from institutions to individuals.

Say goodbye to Moody's, Meridian, Experian, and Fannie Mae. Say hello to BaoBanks.

What is a Synthetic token or Synth?

Throughout these documents, there are many references to synths or synthetics. A synth/synthetic is just a token with a value linked to a price feed or other data source. Bao's synthetics are always transparent & fully backed with the best possible decentralized collaterals, like ETH, and protected by proven safety measures like loan liquidations and stability pools. They can be borrowed or swapped instantly with no middlemen and put to use in DeFi, or simply held in your wallet. The price of our synthetics is enforced with a fixed price in our borrow vaults, liquidity balancers, and variable interest rates. Once it is live, synths will also be swappable for collateral with The Minter, further enforcing a solid price peg.


Bao Finance uses a locked staking mechanism called veBAO (voting escrow BAO). By locking up BAO for more extended periods, holders gain more voting power to shape the protocol and earn a boost to revenue on the platform. Liquidity tokens can be staked to earn a share of revenue. This puts control and more significant rewards in the hands of committed long-term community members.

We invite you to join our community and help push the frontiers of decentralized finance together.

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