Blubber Dao: building a new financial ecology in the encrypted world

4 min readJun 10, 2021

With the development of defi and the continued replacement of inefficient traditional financial markets, innovation in the defi industry should provide users with a frictionless experience. User experience and ease of use are very important to create a successful Defi protocol. The biggest feature of defi is to use the decentralization of blockchain, but in fact, not all ecosystems are decentralized. The most striking example is the weak centralization of governance.

Blubber DAO deeply penetrates the DAO concept of “open”, “independence” and “autonomy” into DeFi products such as cross-chain asset staking, lending and asset allocation, aiming to establish a Web 3.0 that is autonomously managed by the community, transparent and decentralized ecosystem. Blubber returns the finance and control by blockchain technology to the public, realizing the common growth of community user wealth. The prosperity of DeFi is obvious to all, and it is difficult to meet investment needs in a single form. In the future, Blubber DAO will develop a unique DeFi aggregator, which will provide multiple choices while reducing barriers for ecological users to enter the DeFi market and provide convenience for investors.

Blubber Dao: Six ecologies to build new finance

Mortgage loan

Blubber DAO will develop multiple loan products in three phases

Phase 1: Establish a cross-chain bridge with the existing open source DeFi lending

agreement

Phase 2: Using a third-party lending service provider, the backend provides access to high-interest savings options and BD loans, enabling users to access the entire set of services in an easy-to-use single interface.

Phase 3: Develop your own proprietary lending algorithm, similar to MakerDAO, but using cross-chain mortgage assets, not just Ethereum-based assets. By using tokenized derivatives, such as BD-DOT as collateral, we will allow users to have the opportunity to generate staking returns even when obtaining stable currency loans. Users can use this system to leverage their underlying assets in a way that is less risky than traditional margin trading, thereby obtaining more assets and generating more returns.

DeFi aggregator

Blubber DAO will develop an independent DeFi Aggregator to support the connection of all mainstream DeFi protocols and show investors a one-stop experience. Blubber will set up a common settlement currency, applicable liquidity agreement: BD mapping, asset integration agreement: BD-Synthetix, etc.

Unlike other DeFi aggregators, the cross-chain function and smart contract function of Blubber DAO can achieve seamless integration of any protocol and assets from other public chains (such as Bitcoin, Ethereum, etc.). In the future, Blubber DAO will support all encrypted assets and DeFi protocols from the market to form a broad financial network. Ordinary investors will enjoy safe, equal and diversified financial services without borders for the first time. On Blubber DAO, users can enjoy the security and convenience of digital currency anytime, anywhere.

DeFi derivatives

Decentralized derivatives means that both parties to the transaction rely on smart contracts without a trusted third party to write the underlying assets, long or short selling, price and other factors into the smart contract. The contract will automatically trigger execution according to market conditions, reducing the intermediate Transaction costs and the possibility of malicious manipulation by a third party. Blubber DAO-related DeFi derivatives will have the advantages of anti-censorship, on-chain settlement, and ease of use.

DeFi insurance

Users can staking the native token BD for insurance, claim, and evaluation. Blubber will create an insurance service with “Insurer Vaults, Insured Vaults, and Claim Governance” as the core components on top of the DeFi agreement. The design of the system allows to insure any asset with financial primitive elements, whether it is a basic asset (such as BD) or a compound asset (such as aBD or yBD). LPs will receive start-up fees and weekly fees, but they are also responsible for claims management. This basic system does not have a minimum quorum, so LPs should actively manage claims. If the LP refuses to settle the claim effectively, the insured will only move its funds out, making the LP unprofitable and thus adjusting the incentives.

Flexible (algorithmic) stablecoin

The flexible stablecoin developed by Blubber DAO will not anchor any assets such as legal currency, but will maintain a stable price through additional issuance or destruction. The obvious advantage of this setting is that no matter which country’s legal currency depreciates, it will not directly affect the stability of the encrypted market. Blubber will learn from the design of Basecoin and combine the experience of liquidity mining and flexible stablecoin to form a more complete “currency” adjustment mechanism based on changes in market supply and demand.

Fund custody

The security of cryptocurrency assets is one of the most important factors in the blockchain industry. Many blockchain companies fail due to poor security procedures. Blubber DAO will combine non-custodial and custodial wallet solutions. By taking simple precautions to protect critical resources, most security vulnerabilities can be avoided, depending on the specific service.