BSTN Liquidity Mining is Live

Details

Liquidity mining has begun across all of Bastion’s Realms. Staking is live. LP Dual Rewards Farming on Trisolaris will commence in a few hours.

85,000,000 BSTN (1.7% of total supply) will be released in the first month, and decreasing thereafter.

Pools and BSTN staking will be boosted with between $1,000,000 — $2,000,000 worth of NEAR rewards within the first month of token launch. This is thanks to Proximity Labs’ $350mm DeFi Grants program.

Why Borrow-sided Liquidity Mining

Bastion will only support borrow-sided liquidity mining, meaning we will heavily subsidize your borrowing costs.

“But I want to earn while my deposits sit in Bastion!”

You will still be able to earn while your deposits sit in Bastion — at an even higher rate!

This leads to two positive scenarios where users can profit from recursively borrowing and leveraging their deposit on the platform.

Scenario 1

Deposit APY > Borrow APY. This occurs when the yield earned from deposits > the cost of borrowing. Users can “borrow for free” by folding deposits and borrows, and earn more rewards!

Scenario 2

Negative Borrow APY for USDC. This means Bastion’s liquidity mining rewards are so large that they dwarf borrowing costs, enabling users to make money by simply borrowing.

More borrow demand leads to better supply rates which leads to greater liquidity.

This is more capital efficient than early lending protocols like Compound who distributed rewards to both the supply-side and borrow-side.

Advantages

Borrow-sided liquidity mining is advantageous for many reasons, including:

  1. Recursive borrowing increases TVL, attracting more organic capital, thus making the protocol more liquid.
  2. High borrow demand simultaneously lifts up Supply APYs since they are directly derived from the utilization of each market. More borrowing results in greater borrow utilizations of pools, which increases the yield that depositors receive!
  3. Supply APYs will be paid purely in the asset being lent out rather than BSTN, leading to more predictable earnings.
  4. Protocol Revenue comes directly from borrow demand.
  5. Developer integrations become simpler. Composability with Bastion is of utmost priority. The most common integration that we expect is for protocols to deposit funds into Bastion and do interesting things with our cTokens. Removing the complexities of claiming supply-side BSTN rewards and tracking events for off-chain indexing simplifies DevX for integration with Bastion.

Ultimately, this maximizes the most important KPIs of lending protocols: TVL, borrowing volume (outstanding debt) and interest paid.

“So how do I get the most out of Bastion?”

With Bastion, you will be able to increase your yield since leverage will be much cheaper. Recursive borrowing (a method of depositing, then borrowing, then depositing your borrowed amount again, over and over) gives users leverage and allows them to stack rewards. Do keep an eye out for your borrow limit so that you maintain a safe margin!

We’re extremely excited for the journey ahead. Shoutout to our OGs and testnet users — we are very thankful for our earliest supporters! LFG.

About Bastion

Bastion is a Lending and Stableswap protocol built on Aurora, NEAR’s EVM-compatible layer. The project innovates with novel features such as: isolated markets, interest rate swaps, increased receipt token utility, veTokens, gauges, and boosters. Building on Aurora enables Bastion to create an autonomous interest-rate engine with superior capital efficiency, low slippage swaps, fast transactions, ultra-low fees, precise liquidations, and harness the underlying UX benefits of NEAR.

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DISCLAIMER: This article does not constitute investment advice. Bastion Protocol Token (BSTN) is a means by which users may utilize and govern the protocol. Bastion does not recommend purchasing BSTN for speculative investment purposes. BSTN tokens may lose value or have no value and may have no market. Please read the full disclaimers here.

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