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About Beta Finance
Key Points
- Beta Finance is a permissionless money market on Ethereum for borrowing, lending, and shorting crypto assets.
- Users can lend, borrow, and short crypto assets with three options.
- Beta Finance plans to launch on additional layer one and layer two solutions after its Ethereum Mainnet launch.
Founders and Investors
- Founded by Allen Lee, an MIT alumnus.
- Backed by investors including Spartan Group, ParaFi Capital, Multicoin Capital, DeFiance Capital, and Delphi Digital.
Unique Features
- Permissionless money
Introducing Beta Finance: Pioneering the Future of Decentralized Lending
Introducing Beta Finance (BETA): A Comprehensive Overview
Beta Finance is a decentralized, permissionless money market protocol on Ethereum, facilitating borrowing, lending, and short selling of crypto assets. It provides a scalable and accessible platform where tokens can be listed seamlessly and automatically, without permission, and enables users to short these tokens with ease. Looking ahead, Beta Finance plans to expand its presence by launching on additional layer one and layer two solutions following its Ethereum Mainnet debut.
Users are presented with three distinct options: lending, borrowing, and shorting. Lenders can capitalize on their crypto assets by lending them across various markets on Beta Finance, thereby earning interest. Conversely, borrowers can take opposing positions, while short-sellers can utilize collateral to initiate short positions. Notably, Beta Finance diverges from centralized exchanges by eschewing traditional order books in favor of routing trades through decentralized exchanges that employ automated market makers. Furthermore, as part of its Phase 2 launch, the platform is poised to introduce permissionless money market creation.
The Visionaries Behind Beta Finance: Meet the Founders
Beta Finance was founded by Allen Lee, a distinguished alumnus of MIT, who previously held the position of software engineer at Microsoft and Facebook. The platform has garnered support from a prestigious group of investors, including Spartan Group, ParaFi Capital, Multicoin Capital, DeFiance Capital, and Delphi Digital. Anjan Vinod of ParaFi Capital expressed admiration for Beta Finance’s innovative approach to novel assets, its pioneering isolated collateral model, and its ambitious plans for cross-chain support. Meanwhile, Gabriel Tan of Spartan Group shared his enthusiasm, hailing Beta Finance as a rising star in the permissionless money market, poised to make a significant impact in the industry.
Unveiling the Unparalleled Attributes of Beta Finance
Beta Finance has pinpointed the pronounced volatility inherent in crypto as a major hindrance to the widespread adoption of DeFi by both individuals and institutions. The platform recognizes short-selling as a vital financial instrument currently lacking in the DeFi ecosystem, which is essential for fostering market stability and efficiency. With the innovative “1-Click Short” feature, users can effortlessly engage in short-selling, simply by selecting the desired DEX to swap through and staking the newly swapped collateral alongside the principal in the short position, all with a single click.
Beta Finance adopts an isolated collateral model, ensuring that a collateralized position at risk of liquidation does not jeopardize another position. Initially, Beta Finance supports a diverse range of collateral options, including ETH, USDC, USDT, and DAI. Furthermore, the community has the autonomy to propose and vote on additional collateral support in Phase 2. Notably, collaterals are subject to varying collateral factors, with stablecoins boasting a collateral factor of 90%, while ETH has a collateral factor of 80%.
Assets are categorized into distinct tiers, each with its own loan-to-value (LTV) ratio. Stablecoins, deemed safe assets, boast a 75% LTV, while more volatile assets are assigned a 50% ratio. The most speculative assets, including meme coins, have a significantly lower LTV of 20%. The isolated collateral model ensures enhanced fund security for users, providing an additional layer of protection that safeguards assets even in the event of a compromised asset on a Beta market.
What Is the Circulating Supply of Beta Finance (BETA) Coins?
The total supply of BETA is capped at 1 billion tokens, with a carefully crafted token allocation strategy as follows:
Binance Launchpad Sale – A Limited Opportunity of 5%
Private Seed Sale Allocation – 10%
A Strategic Sale of 5% Allocation
Introducing Alpha Finance Launchpad – Unlocking Opportunities with a 5% Allocation
The Team – 20% Allocation
Ecosystem – Thirty-Five Percent
Liquidity Mining: A 20% Allocation
As of September 29, 2021, Beta Finance has strategically allocated its raised funds as follows:
- 6.76% Allocated to Marketing
- 10.13% Dedicated to Team
- 63.53% Committed to Development
- 19.57% Assigned to Operation
Beta Finance is slated to debut on October 8, 2021, via Binance Launchpad, with an inaugural token price of $0.06.
The Beta Finance Network’s Security Framework: A Robust Defense
BETA exists as both an ERC-20 token on the Ethereum network and a BEP-20 token on the Binance Smart Chain (BSC). The robust security framework is founded upon four primary pillars:
- Beta Finance perpetually undertakes rigorous internal code audits to ensure the integrity of its system.
- The platform will solicit external assessments from esteemed security experts to further bolster its defenses.
- Real-time monitoring services will be integrated to provide an additional layer of security.
- Beta Finance will initiate a bug bounty program, inviting white-hat hackers to identify vulnerabilities and contribute to the platform’s ongoing improvement.
Notably, funds are safeguarded in cold storage multi-signature wallets and USD bank accounts, ensuring an additional layer of security. Moreover, any transfer of funds necessitates the consent of at least three out of the five executives and advisors of Beta Finance, thereby maintaining a robust system of checks and balances. Furthermore, Beta Finance has undergone rigorous audits by esteemed firms OpenZeppelin and PeckShield, reaffirming its commitment to transparency and security.
ERC-20 is the de facto token standard that most newly minted tokens adhere to when launching on the Ethereum blockchain. As one of the most prominent blockchains, Ethereum has established itself as the go-to platform for numerous decentralized applications and exchanges. Its robust security is ensured by a proof-of-stake consensus mechanism, which necessitates validators to stake a minimum of 32 ETH. A network of decentralized nodes is responsible for validating transactions and maintaining the integrity of the Ethereum blockchain.
Will Beta Finance Reach the $1 Milestone?
Beta Finance is poised to debut at an initial launchpad price of $0.06. The prospect of the project surging to $1 hinges on a multitude of factors, including the prevailing market sentiment, the extent of market adoption, and the team’s ability to deliver on its ambitious roadmap.
Acquiring Beta Finance (BETA): A Comprehensive Guide
Mark your calendars for October 8, 2021, as BETA is set to make its highly anticipated debut on Binance Launchpad.
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