On Polygon, Barn Bridge introduces SMART Yield and SMART Exposure

BarnBridge, a risk tokenization technology, is introducing two new applications on Polygon: SMART Yield and SMART Exposure. BarnBridge is a protocol for lowering DeFi risks such as inflation, market pricing, and cash-flow volatility, among others. Both applications are designed to reduce the risk of loan market yields and portfolio concentration risk.

The Junior Tranche of the SMART Yield is a higher-risk, levered-return product, whereas the Senior Tranche is a lower-risk, fixed-return category. Should the underlying debt pool’s variable rate fall, funds (both yield earned and principal provided) from the Junior Tranche will be salvaged to meet the Senior Tranche’s fixed return requirement, and vice versa, should the underlying debt pool’s variable rate rise, the excess of the Senior Tranche’s fixed return will be allocated to the Junior Tranche.

BarnBridge’s latest tool, SMART Exposure, allows users to automate position rebalancing with any supported ERC-20 pair. Because the tokens are bought and sold to maintain the ratio, the ratio between two tokens is set, say 60:40, regardless of price variations. Tranches are distinct ratios supported (up to 5) between any two pools of ERC-20 assets in SMART Exposure.

SMART Yield and SMART Exposure will provide new risk mitigation measures to DeFi on Polygon when used together. Smart Yield provides depositors with fixed and levered variable returns in lending markets like as Aave and Compound, while SMART Exposure automates position management. Polygon plans to use full-stack scalability to enable seamless transaction speeds and ultra-low gas prices. Additionally, the money markets on Polygon are expected to expand BarnBridge’s user base.

About BarnBridge

BarnBridge is a DeFi-based risk tokenization technology. Users can choose among competing pools, known as tranches, and take bets on risk factors such as interest rates or asset prices using its applications. SMART Yield, the company’s first application, provides fixed and levered variable returns on stablecoins placed in underlying loan markets such as Aave, Compound, and C.R.E.A.M. Finance. SMART Exposure, SMART Alpha, and SMART FIAT will be added to its application portfolio in the following months. BarnBridge is now available on both Ethereum and the Polygon Network.

About Polygon

Polygon is the world’s first well-structured, simple-to-use Ethereum scaling and infrastructure development platform. Polygon SDK is its fundamental component, a modular, versatile platform for creating and connecting Secured Chains such as Plasma, Optimistic Rollups, zkRollups, Validium, and others, as well as Standalone Chains such as Polygon POS, which are built for flexibility and independence. Polygon’s scaling solutions have been widely adopted, with over 450 Dapps, 350 million transactions, and 13.5 million unique users.