BarnBridge (BOND) is a governance token for a protocol that enables users to hedge against DeFi yield sensitivity and price volatility through risk tokenization. Founded in 2019 and launched in September 2020, BarnBridge creates tradeable tokens that expose users to market volatility in a controlled manner. The platform's main product, SMART Yield, allows users to choose between risk profiles for lending on DeFi protocols like Aave and Compound. BOND has a maximum supply of 10 million tokens and serves as both a governance mechanism and revenue-sharing token. However, the SEC charged BarnBridge DAO in December 2023 for operating unregistered investment companies, resulting in a settlement of over $1.7 million.

You may ask

What is BarnBridge (BOND)?

BarnBridge is a protocol for tokenizing risks that enables users to hedge against DeFi yield sensitivity and price volatility. Its main product, SMART Yield, allows users to choose between senior and junior risk profiles for lending.

What happened with the SEC?

In December 2023, the SEC charged BarnBridge DAO for operating unregistered investment companies. The settlement involved paying over $1.7 million, with BarnBridge agreeing to stop offering SMART Yield bonds.

How does SMART Yield work?

SMART Yield allows investors to purchase "Senior" or "Junior" bonds. Senior bonds offer fixed rates at lower risk, while junior bonds provide higher rates at higher risk. The system pools crypto assets to generate returns for different risk preferences.

What is BOND token's supply?

BOND has a maximum supply of 10 million tokens, with approximately 7.91 million currently in circulation. The token serves as both governance mechanism and revenue-sharing instrument for the protocol.