Moonbird Finance is a DeFi ecosystem based on the BNB Chain (BSC). It aims to create a sustainable positive feedback loop between MoonBird (governance token), SmartBird (DeFi 2.1 protocol), and NFMs.
Yes, Moonbird Finance takes security to the utmost importance and we audit any new protocol additions. You can check our security here.
SmartBird will bring protocol-owned liquidity to our ecosystem. In essence, it is a fork of OlympusDAO but we've made a few modifications to it to better integrate with our ecosystem.
SmartBird has a few unique aspects that are not usually seen in other reserve currency protocols. SmartBird will operate with two separate treasuries. A Risk-Free Value (RFV) treasury, which will help back the value of SBIRD, the APY, and the minting of new collateralized assets. The other is a VC/Investment type treasury that will explore new investment opportunities while compounding its gains into the Risk-Free Value Treasury consistently to increase the collateral behind SBIRD and its value over time.
A 50% percentage of the treasuries yield farming profits will be used to buy back and burn MBIRD. This will make MBIRD hyper deflationary, which will greatly increase its scarcity and consistently raise the price floor.
SmartBird operates a protocol-managed treasury, protocol-owned liquidity (POL), bond mechanism, and staking mechanisms that are designed to control supply expansion.
Bond sales generate profit for the protocol. With liquidity bonds, the protocol is able to accumulate its own liquidity.
SmartBird protocol will own the majority of its liquidity as a result of its bond structure. This has several advantages:
- SmartBird does not need to give out large farming bonuses to entice liquidity suppliers, often known as renting liquidity.
- SmartBird assures the market that liquidity will always be available to support sell or buy transactions.
- Because it is the largest LP (liquidity provider), it gets the majority of the LP fees, which is another source of income for the Treasury.
No, SBIRD is not a stable coin. SBIRD, on the other hand, intends to be an algorithmic reserve token backed by other decentralized assets (BUSD). SBIRD, like the gold standard, gives free-floating value to its users that they can always rely on, simply because of the fractional treasury reserves SBIRD draws its intrinsic value from.
Each SBIRD is backed by 1 BUSD, not pegged to it. Because the treasury backs every SBIRD with at least 1 BUSD, the protocol would buy back and burn SBIRD when it trades below 1 BUSD. This has the effect of pushing SBIRD price back up to 1 BUSD. SBIRD could always trade above 1 BUSD because there is no upper limit imposed by the protocol. (Pegged means it would be == 1. Backed means that it would be at least 1 or >= 1)
You might say that the SBIRD floor price or intrinsic value is 1 BUSD. We believe that the actual price will always be 1 BUSD + premium, but in the end that is up to the market to decide.
Rebase is a mechanism by which your staked SBIRD balance increases automatically. When new SBIRD are minted by the protocol, a large portion of it goes to the stakers. Because stakers only see staked SBIRD balance instead of SBIRD, the protocol utilizes the rebase mechanism to increase the staked SBIRD balance so that 1 staked SBIRD is always redeemable for 1 SBIRD.
APY stands for annual percentage yield. It measures the real rate of return on your principal by taking into account the effect of compounding interest. In the case of SmartBird, your staked SBIRD represents your principal, and the compound interest is added periodically on every epoch (around 8 hours) thanks to the rebase mechanism.
One interesting fact about APY is that your balance will grow not linearly but exponentially over time! Assuming a daily compound interest of 2%, if you start with a balance of 1 SBIRD on day 1, after a year, your balance will grow to about 1377.