The decentralized finance (DeFi) market opens up plenty of opportunities for earning, as well as cutting costs on loans and reducing transactional costs. At the same time, many users face issues upon attempting to transfer to new instruments. For example, very often entering into DeFi platforms is accessible only to tech-savvy people. This and many other problems of the decentralized finance field were solved by BaksDAO developers. Let’s dive deeper into its features and growth opportunities.
What is BaksDAO
BaksDAO is a multifunctional decentralized finance (DeFi) platform that among other things, allows users to get loans against crypto assets. Also, BaksDAO provides users with instruments to get passive income through providing assets for lending. The key mission of the project is to simplify the entrance into the DeFi market.
To newbies, the decentralized finance market can appear complicated. Lack of drive for new technologies results in missed opportunities. For example, the DeFi market offers way more favorable terms for credits than banks. This being said, there is no need to follow verification procedures or wait for the financial organization’s approval. It is enough to send a request from the comfort of your coach and you get an instant transfer of the money.
The DeFi principles help to create a transparent market. In such a market, people would not have to trust middlemen, the role of which is currently played by traditional banks and other credit organizations. The BaksDAO developers used this and many other advantages of decentralized finance to create the platform.
Technical aspects of BaksDAO
The project is built on the blockchain of the popular cryptocurrency exchange Binance – Binance Smart Chain (BSC). The chain of the trading platform, in comparison with its main competitor – Ethereum, offers its users low commissions and high speed of transactions. Choosing BSC made BaksDAO more lucrative and quicker. In the future, developers also plan the integration with Ethereum and Polygon to broaden the audience.
The platform is fully decentralized. It is governed by BaksDAO users with BDV tokens which give voting rights in the project ecosystem. In other words, BDV tokens allow decentralized voting that is needed to make independent decisions about the development of the platform.
Also, the project has its stablecoin BAKS. Its exchange rate is pegged to the US dollar 1:1. This financial instrument helps to solve the problem of the high volatility of such traditional cryptocurrencies like bitcoin while keeping all advantages of the digital assets. The BAKS exchange rate is corrected by the project stabilization fund.
- Smart contract checks the exchange rates of the collateralized coins
- Smart contract accesses the collateral value in sync with new exchange rates
- Is the number of issued tokens BAKS equal to the collateral value on smart contracts?
- Is the value of BAKS issued tokens higher than collateral?
- Smart contract burns a portion of BAKS tokens
- Smart contract emits additional BAKS tokens
The BAKS emission correction algorithm of the project’s stabilization fund. Source: the BaksDAO whitepaper
The developers fully automated BaksDAO. To achieve this result, the team used a system of oracles Chainlink and smart contracts.
Important! To start working on BaksDAO, users need to connect MetaMask to the platform. MetaMask is one of the most popular wallets in the crypto community.
What differentiates BaksDAO from other DeFi players
Even though the market is full of DeFi projects, the BaksDAO team succeeded in grasping investors’ attention due to several distinctive features. Let’s explore them in detail:
- Favorable and convenient credit terms
Developers provide users with alternative rules for credit processing. For example, it is possible to get loans with an open-date pay-back period on the BAKS platform.
Also, the discount system is available for BaksDAO users. When a user pays back the loan in BDV tokens, the annual interest rate drops from 11% to 5%. The developers emphasize that paying back is also possible in parts.
- Intuitive interface
The intuitive interface of BaksDAO platform helps users to seamlessly request loans or use other platform’s instruments for getting passive income.
Important! A video tutorial on how to start using the platform is available on the BaksDAO website.
- Lucrative terms for big investors
BaksDAO users have access to transparent solutions for capital management. Those instruments, according to developers, allow users to keep control over their assets without forgoing the potential profits.
- Effective investment and social promo mechanisms
Roughly 50% of the BaksDAO profits are invested in burning BDV tokens and eco-projects. This approach forms a base for the long-term financial development of the platform and increases its sustainability, as well as puts it into a category of socially impactful businesses.
Apart from credits and earnings on deposits, BaksDAO offers its users instruments for crypto exchange. The service for liquidity injecting is also under development.
Important! At the beginning of January 2022, the project successfully passed the safety audit by Solid Proof.
The BaksDAO has solved several customer pain points that were previously a barrier for entering the DeFi market for many potential users. For example, the developers offered an intuitive and user-friendly interface on a platform.
The BaksDAO instruments allow users not only to get loans but also earn by providing assets for credits. In the future, the functionality of the platform is going to grow.