Traditional finance doesn’t work. For too long it’s been serving the wealthy suits while erecting barriers of entry for everyone else. They own the data, restrict the tools, and change the rules to always be in their favor. It’s time to not only give that power back to the people, but to create even more powerful tools that the old cumbersome system could never dream of.
At Bao Finance, we’re building a community composed of brilliant minds all seeking control of their own finances and building a new system that works for everyone. Synthetic assets allow us to create financial instruments and markets never seen before. If the data exists, so too can a marketplace for it - the possibilities are endless.
It all comes down to data. Most people aren’t aware that financial data is what makes institutions so powerful and why you can’t do what they do. This is why synthetics will matter. If you can get liquidity in any discrete quantifiable event, what have you created? The world’s most accurate financial data system. Financial data is used within insurance, lending, hedge funds, risk mitigation, banking, yield, mortgages, credit scores, etc.
Incentivised synthetics allow you to start building an open financial data market. Once you have synthetics, you own the financial data stream to anything because you can incentivise liquidity to make it more accurate. With this financial data stream you can start any DeFi business you want on top of it, or package and sell the data for others to build on. You become the foundation for the future of finance.
Our intial deployment of Bao Markets will feature our first hard synth, baoUSD, a multi-collateralized stablecoin.
Bao Baskets will be similar to our Polly Nests, but will feature the gas saving feature from PieDAO, the oven!
Using Bao Baskets as collateral for baoUSD, and future synthetics, allows users to leverage yield bearing assets as collateral to mint synthetics.
We will migrate to a new token contract to alleviate some of the issues that our v1 contract presented.
veBAO will introduce a new rewards mechanic that will incentivize users to lock their tokens for extended periods of time. All rewards will go through veBAO.
We will focus on developing new strategies and integrations for our Bao Baskets so that we can maximize yield and diversify exposure.
Develop a new synthetic for Bao Markets as well as introduce more collateral types.
Implement Governance Bravo. Governance Bravo is the governance system developed and used by Compound Protocol.
Deploy our hard synth market to our Polly franchise on Polygon.
Our soft synths, Baskets and Nests, will become a permissionless platform over time. Users will have the ability to create their own Basket compositions, as well as choose custom strategies for them. Phase 1 will allow users to create their own Baskets and choose from a predetermined list of strategies.
Bao Labs will be a galaxy with the sole function of researching and developing new synthetic assets for our Bao Markets.
Soft and hard synthetics that utilize LP tokens as collateral.
Auto-balancer system that will manage a users synthetics, futures and LP positions.
Lending pools which will utilize LP tokens as collateral.
Options, perpetual futures, margin trading and limit orders utilizing LP tokens as collateral.
Synthetic assets are an important part of a decentralized ecosystem. They allow decentralized infrastructure to offer assets that track the price of any system.