I've recently seen some stablecoin projects on @Bitfi_Org. Let me start by mentioning participation. There are two pools: Horizon and Pulsar. If I were to participate, I would choose Horizon, mainly because of its low risk and decent APR (Average Return). The actual return is 5.7% + BFI token subsidies. The BFI token subsidies aren't always available; they're only available for three months, starting December 22nd. If you can tolerate higher risk, choose the Pulsar pool, which also offers BFI token subsidies. Regarding points, it's similar to previous point-based projects. Holding bfUSD provides a low multiplier for points, while being an LP (Limited Partner) results in a higher multiplier. In short, higher risk means higher point multipliers. There are also some tasks that can earn a fixed number of points. I've also reviewed the project's mechanics. Not understanding the mechanics of stablecoin projects can lead to significant losses, the worst-case scenario being a 100% loss. Therefore, it's crucial to understand both the advantages and risks! The relationship between the Horizon pool and the Pulsar pool: The Horizon pool is a low-risk pool, while the Pulsar pool is a high-risk pool. The Pulsar pool acts as insurance for the Horizon pool, protecting its funds from drawdowns. In short, the Horizon pool pays an "insurance premium" for a stable, drawdown-free experience, while the Pulsar pool bears the risk for higher returns.
Advantages of bfUSD:
1) 1:1 USD, similar to Ethena's USDe, can be minted using USDT or USDC priced based on Chainlink oracles.
2) bfUSD supports standard redemption (low fees, requires a settlement period) and instant redemption (high fees, instant settlement, limited availability).
3) bfUSD supports LayerZero cross-chain functionality. LayerZero is truly the king of cross-chain technology; it's used everywhere.
I also have concerns. Currently, only standard redemption is available, which takes 3 days. I hope instant redemption will be available soon; this is very important! I also suggest that it would be best to allow us to see the underlying assets of BFUSD directly through a dashboard. Currently, we can only see the price and APY of BFUSD, which is indeed worrying and frightening.
twitter.com/0x_xifeng/status/2...
