Presented by Bearn.fi, bDollar is the first algorithmic stablecoin on Binance Smart Chain with an innovative solution that can adjust its supply deterministically to move the price of the token in the direction of a target price to bring programmability and interoperability to DeFi.

Inspired by Basis and its predecessors, bDollar is a multi-token protocol that consists of three tokens: BDO (the algorithmic stablecoin), bDollar Shares (or sBDO, which holders can claim BDO inflation when the network expands), and bDollar Bonds (or bBDO, which can be purchased at a discount rate when the network is in contraction and can be redeemed for BDO when the network comes to its deflationary phase and price goes below 1$).

Below is the explanation of how bDollar mechanisms works:

BDO trades below the $1 target price

When the BDO price is below the target price of $1, token holders can purchase bDollar Bonds with an extra discount and Bonds will be burnt to reduce the circulating supply when users redeem bDollar with a 1:1 ratio.

In case of redemption, an amount of BDO will be minted to equal the bDollar Bonds that have been redeemed. Important to note is that Bonds have no expiry after purchase.

BDO trades above the $1 target price

When BDO price is above the 1$ peg, the token supply will have to expand to push it back down to 1$ and the contract will allow the redemption of the bDollar Bonds.

When the price of bDollar continues trading above the $1 target price after bond redemption, the contract mints an appropriate amount of new BDO and this will be distributed to the Boardroom Stakers.

Unique algorithm

  • Epoch Duration: 6 hours
  • Rebase/Expansion Amount: Up to 3%
  • Supply/Reward Mechanism: All parameters will be votable on-chain by governance
  • No expiry for Bonds
  • Community vote’s pool — new pools will be open based on the community’s vote

bDollar token distribution

  1. Initial supply: 210,000 BDO
  2. Distribution period: 3 weeks
  • First week: 80,000 BDO
  • Second week: 60,000 BDO
  • Third week: 40,000 BDO
  • Airdrop: 30,000 BDO (BNB, BUSD, CAKE, BFI, BFIE, ESD, BAC, and VALUE) #hodlers can claim BDO by connecting your wallet at bdollar.fi/claim.The airdrop is organized on a first come — first serve basis, until the whole 30k BDO is fully distributed. Each wallet can claim a maximum of 2 BDO while upNdown’s users will be entitled to claim 5 BDO.

Reward rate for Seed pools from Day 1

  • BUSD: 4x
  • DAI: 2x
  • BFI: 2x
  • CAKE: 1x
  • 3 tokens voted by Community — 1x

Reward rate for Liquidity pools from Day 3

bDollar Shares distribution

sBDO has a maximum total supply of 100,000 tokens. 15,000 sBDO are allocated to the team and DAO (7,500 each) and vested linearly over 12 months. The remaining 85,000 sBDO are allocated for incentivizing Liquidity Providers in 2 pools, as follows:

Participate in bDollar farming

To participate in the protocol, visit the bDollar Banks dashboard here, and select your preferred pool:

Participate in the Boardroom

Boardroom opens 7 days after the launch: 01/01/2021 00:00 UTC

The first segniorage will happen 12 hours after that.

Conclusion

bDollar is the latest product of the Bearn.Fi ecosystem as we are strong supporters of algorithmic stablecoins in particular and DeFi in general. However, bDollar is an experiment, and participants should take great caution and learn more about the seigniorage concept and supply expansion and contraction mechanism to avoid any potential loss.

Community channels:

Telegram: https://t.me/Bearn_Fi

Discord: https://discord.gg/j2TRcSHRe3

Medium: https://medium.com/@bearn.defi

Twitter: https://twitter.com/bDollar_Fi

GitHub: https://github.com/bearn-defi/bdollar-smartcontracts

Cross-chain Auto Yield Farming: https://www.bearn.fi/