The DeFi space is always changing rapidly, with this project exploding one day and that one plummeting the next, the digital asset market is always unpredictable. It is always difficult for investors and users to grasp the volatile DeFi trading space, especially for individual investors who are faced with a complex portfolio and often find it difficult to grasp the balance of risk and return. This has led to a period of coldness in liquidity mining, yet the introduction of new tools, technologies and platforms can often bring unexpected turnarounds and wealth to the market. Just when investors were overwhelmed by the increasing complexity of DeFi, a white paper released by a diversified liquidity mining aggregation financial platform called BOP exploded a thunderclap in the market.
BOP Official White Paper
Note: The content of this article is referenced in the authoritative, professional and advanced official BOP white paper. (And as an aside, white papers are an important criterion for judging projects, and the official white papers released by the BOP are already quite dominant in the DeFi market with their brevity, clarity and precise capture of pain points.)
What is BOP? What challenges does it solve?
BOP is a DeFi governed platform that offsets impermanent losses through perpetual liquidity governance, supports multiple DeFi protocols, and the chain can combine gold trading, futures trading, and digital currency trading data, making it the next generation of smart aggregated money management platforms.
BOP sees three problems facing the DeFi ecosystem today.
- Existing DeFi tools are too complex for the average user, which I’m sure your readers will relate to, especially when faced with the difficult interactions and choices of pooling, deposit liquidity and volatile losses.
- It is difficult for users to distinguish and judge the merits of different DeFi projects, to assess the potential risks and rewards of each project, and to interact and trade activities between different blockchains.
- Transaction fees are getting higher and higher, and the cost becomes unaffordable for the average user, resulting in lower yields.
- Against this backdrop, what creative contributions has BOP made that could make another wave in the liquidity mining space?
- Firstly, in terms of revenue strategy, BOP pools the USDT deposited by users into different pools and then mobilizes funds according to the strategy to participate in different liquidity mining, thus achieving higher revenue.
- Second, the threshold cost, where the BOP lowers the user threshold and offers lower rates.
- Finally, technical performance, BOP has made significant technical optimizations, has professional core algorithms for liquidity, highly scalable customization services and strong corps support technology, will automatically adjust positions, select revenue pools and strictly review smart contract security, and uses a minimalist user-friendly interface.
BOP partial technical solution diagram (source: BOP white paper)
Summary
Essentially, a BOP is a pool of funds containing strategies for maximizing asset returns, involving the provision of collateral and borrowing of other assets, providing liquidity and charging low transaction fees. Each liquidity mining strategy follows the principles voted by the decentralized BOP community. Currently, BOP liquidity mining products use IDO liquidity mining and single-coin mining outputs, and have opened BOP mining pools, algorithmically stable mining pools, IDO governance coin mining pools, and aggregated wallet governance coin mining pools. In the field of liquidity mining, BOP has paved a breakthrough traditional infrastructure for the whole market and promoted another version of leapfrog development of global DeFi.
