Lending Backstops

Bao Finance has integrated B.Protocol for automated, decentralized liquidations by the community.

B.Protocol automatically facilitates liquidations on Bao using community deposits. This provides:

  • Improved stability for Bao Vaults

  • Higher capital efficiency

  • Redistribution of profits to depositors

  • Easier access to participating in liquidations

How it Works

  • Users deposit into Backstop pools on B.Protocol.

  • Funds are automatically pulled from pools when Bao liquidations occur.

  • Backstop AMM automatically handles the sale of seized collateral.

  • Profits flow back into the pools.

  • Depositors earn automated yield.

Liquidations on Bao

  • Risky debt positions are automatically repaid with B.Protocol deposits.

  • Liquidation penalties convert into deposited assets.

B.Protocol enables efficient, automated decentralized liquidations to improve stability for Bao Finance. For more information on how B.Protocol works, look at their documentation here.

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