🪄Barista Stability Pool Integration with Liquid Loans

Backstop AMM (BAMM)

Barista provides a Backstop AMM (BAMM) DeFi primitive, providing better stability, and unlocking higher capital efficiency in the DeFi ecosystem. By democratizing liquidation systems Barista shifts MEV and bots' profits to the community.

High-Level System Design

Barista pools users’ funds into the Backstop pool. This liquidity is used for liquidations as they happen on Liquid Loans. While the Backstop funds are sitting idle in the pool waiting for liquidation to occur, they gain liquidity mining rewards, generating passive revenue for the Backstoppers - users who provide liquidity to the Backstop pool.

Once a liquidation takes place, the Backstop AMM (B.AMM) smart contract pulls the needed funds from the backstop to facilitate the liquidation and automatically puts the seized collateral for sale. Once sold, the return is deposited back to the backstop pool, and profits are accrued.

You can read more about B.Protocol in their docs  —https://docs.bprotocol.org/master-1 For a deep understanding of the V2 B.AMM check here - https://docs.bprotocol.org/technical-documentation/v2

Barista's integration with Liquid Loans is designed to make managing your Liquid Loans Stability Pool position more automated and efficient. It helps ensure that your deposited USDL is optimally managed in response to liquidations.

COMPLETE KNOWLEDGE BASE FOR LIQUID LOAN --> https://docs.liquidloans.io/ - Accessible anytime via the connect menu on the lefthand side