What is Belt Finance (BELT) | What is Belt Finance token

In this article, we’ll discuss information about the Belt Finance project and BELT token

What is Belt Finance?

Belt Finance is an AMM protocol that incorporates multi-strategy yield optimizing on Binance Smart Chain (BSC) with low fees/slippage that also provides aggregation through vault compounding, lending and yield generation for maximum returns.

Unlike other exchanges, you can directly swap between stable assets instantly. More than this, Belt.fi allows you to automatically earn with your stable assets by yield farming with an optimized strategy while also getting BELT tokens. All the processes behind these features and your liquidity work directly through BSC smart contracts without any centralized processing.

Belt.fi is launching on BSC to take advantage of the low gas fees and high transaction speeds available on Binance Smart Chain. For individuals, Ethereum’s high costs make moving assets to find optimal yield is prohibitively costly. Belt.fi on BSC maximizes your returns with this reduced cost friction. More than that, Belt.fi’s vault compounding puts together the convenience and savings of gas fees while also essentially having no impermanent loss.

Belt.fi is non-custodial, meaning that no-one besides you can move or withdraw your deposited assets.

Key Features

Belt.fi is a protocol that allows users to retain the stability of their asset positions and get maximum yields with minimal risk (little to no impermanent loss). We accomplish this with a combination of three main strategies:

Convenient, automated vault compounding
Belt.fi maximizes yield returns on your asset position by strategically utilizing a variety of vaults and compounding these an optimal number of times per day.
Strategy modifying yield optimization
The bToken is not simply a single, set strategy. As it is connected to a multitude of strategies, it instantaneously shifts to the most optimal strategy available so your assets get the best possible yield.
AMM with stable or same-value tokens with low slippage and low IL (impermanent loss)
Impermanent loss has plagued liquidity provisioning from the start of DeFi, but as Belt.fi offers you the possibility of participating in AMM with a variety of bTokens that have close to no price volatility relative to each other, you retain the convenience and assurance of retaining your token position while getting returns with no impermanent loss or price impact. This is because the pools contain a multitude of tokens with similar value/origin.
Belt.fi’s AMM functionality offers benefits both for Makers (liquidity providers) and Takers (those doing token swaps). Makers get the highest yield from their deposits through Belt.fi’s strategy modifying yield optimization, compounding, and the BELT token. Takers can take advantage of Belt.fi’s low trading fees, low slippage, and low price impact.

In short, what you get from Belt.fi is:

Stable positioning of your assets with little to no impermanent loss
Automated, maximally optimized yield
Complete Decentralization
A fully governance-based BELT token economy

Deposit your assets into Belt.fi to get a conveyor belt that delivers optimized yield, and sit back and watch your portfolio grow safely!

Vision

We will make a true cross-chain DeFi ecosystem. There are many coins that mirror Bitcoin like WBTC, renBTC, BTCB, … and there are also many USD based stablecoins including BUSD, USDT, USDC, DAI, UST and more. The problem with this is that it is confusing to swap and store these in vaults. While the value of the coins themselves may be stable, generating high yield while keeping this safety is not the easiest process.

Belt.fi makes pools of these tokens of the same nature (i.e. BUSD and USDT) and make it possible to swap these with very low fees and low slippage. This gives DeFi users the opportunity to keep the safe nature of their stablecoins while getting high rewards.

We at Belt.fi envision a future of immense interoperability in which you can maximize returns conveniently by adding liquidity to any pool of assets of any connected chain.

The team behind Belt.fi has been researching and developing interchain technology since incorporating in 2017 and creating Orbit Chain and related interchain-protocols. We launched Orbit Chain and it’s Orbit Bridge IBC protocol, which bridges assets on N-to-N routes. We will continue making IBC (inter-blockchain communication) innovations with Orbit Chain to create a true cross-chain DeFi ecosystem. Belt.fi wil be the core protocol of this ecosystem.

Roadmap

Dark Blue = Phase 0; Purple = Phase 1

Understanding bTokens

Vault compounding and yield optimizing

Vaults

Vaults are capital pools that automatically generate yield based on opportunities present in the market. Vaults benefit users by spreading gas costs, automating the yield generation and rebalancing processes, and automatically shifting capital as opportunities arise. End users also do not need to have proficient knowledge of DeFi or the underlying protocols involved, thus, Vaults represent a passive-investing strategy.

Earn

A main function of Belt.fi is being a lending aggregator. Funds are automatically shifted between Venus and other lending protocols on BSC as interest rates change between these protocols. Users can deposit to these lending aggregator smart contracts via the Earn section. Belt.fi completely optimizes the interest accrual process for end-users to ensure they are always obtaining the highest interest rates among our connected platforms.

bTokens

bTokens are in essence a deposit receipt. They represent liquidity provided in a Belt depositor contract.

For example, if you deposit DAI in Belt Depositor you will receive bDAI in return.

If the depositor contract you are providing liquidity to generates profit, your bTokens will increase in value, since they represent a share of that pool. This is why you may observe a increase in price. When you withdraw liquidity from the pool, your bToken will be burned.

bTokens are BEP-20 meaning they can be transfered and traded as any other BSC token.

You might be thinking that Venus doesn’t always have the best lending rates. You’re right. This is why the bToken automatically balances your stablecoin to the protocol(s) with better rates if there are any. This process is free and non-custodial, but it is also the reason as to why the bPools can be considered more risky as you use a series of protocols that could themselves have critical vulnerabilities.

bTokens with multi-strategy

For now, our venus pool leverages a single Venus protocol strategy. Prior to launch, we thought that Venus would be a good place for our first pool because it had the highest liquidity, was the most reliable, and had good base APY (it was like 30%). We chose the single strategy pool to begin as there are less lending protocols available on BSC than Ethereum.

But the explosive growth of Belt.fi (exceeding our initial expectations) and lowering base APY on Venus made it so that Belt.fi users are not getting the high returns that we want them to get.

This is why we’re launching Belt.fi’s multi-strategy earlier than we planned because we want to give the best APY to our users.

The basic idea of what multi-strategy yield optimization can be seen with yearn.finance. yearn has a strategy of deciding and rebalancing their TVL between Compound, AAVE, and other lending protocols.

This kind of multi-strategy would be terrible for us.

If we chose one protocol with the best APY and put all our TVL in that protocol, the APY would plummet and become the worst rate in BSC… This is because our TVL is very high and BSC doesn’t have huge lending protocols in comparison to Ethereum.

For this reason, we are creating multi-strategy bTokens and not depositing the whole of the assets they represent in a single strategy. Deposits will be operated through the “Keepers” decided ratio, which you can see in the architecture.

We aim to have decoupling between each layer so that we can define standard interfaces, and so that each layer works separately if needed. This contract upgrade will create the real bTokens we intended from the start. We will find the best ratios, and this will make Belt.fi an infinitely more scalable protocol.

Don’t be concerned that we manage ratios between strategies (setRatio). Belt.fi is a non-custodial protocol so that no one can touch your assets. And also we can’t haphazardly add or remove strategy. If you do not want multi-strategy you just deposit your assets in the venus pool.

Cross-chain DeFi with bTokens

Understanding Liquidity Pools

If you are new to BSC or DeFi, liquidity pools can be a complicated concept to understand. I will do my best to help you understand simply.

Liquidity pools are pools of tokens that sit in smart contracts. If you were to create a pool of DAI and BUSD where 1 DAI = 1 BUSD, you would have the same amount of tokens, let’s say 1,000 tokens (1,000 DAI and 1,000 BUSD) in the pool when you deposit.

If Trader A comes and exchanges 100 DAI for 100 USDB, you would then have 1,100 DAI and 900 BUSD in the pool so the price would tilt slightly lower for BUSD to encourage another trader to exchange BUSD for DAI and average the pool back to the same 1:1 ratio.

You can see these details for each pool and it is something you can take advantage of when depositing.

What are the pools in Belt.fi?

In Belt.fi, all tokens or LP tokens can be pooled. Pool consisting of groups of tokens/LPs with the same origin or same values support low transaction fees and low slippage through AMM. The best pools of our protocol will generate more yield and return more incentive to Belt.fi pool liquidity providers. Some of these of pools may consist of a variety of:

Instant-swap protocol (like PancakeSwap) LP pools
Vault with lending protocols (like venus) token pools
Staking assets & assets (like ETH-BETH) pools
tokens + pool tokens (like VAI - venus pool ) pools
non-yield non-impermanent loss stable vault pools with AMM profits

This great variety of pool categories gives each user a plethora of options to choose from. AMM incentivation is not the only upside to select. Pools can be made of bTokens, incentivizing users to deposit into a single-sided vault and farm BELT tokens without soley relying on AMM fee returns.

We at Belt.fi strive to give the greatest possiblity to users. Not setting on a single strategy such as AMM or auto-compounding sets up a field with multiple strategies working in tandem for the biggest benefit as the BSC DeFi ecosystem continues to grow.

BELT token

Ticker : BELT
Contract Address : 0xE0e514c71282b6f4e823703a39374Cf58dc3eA4f
Chain : Binance Smart chain (BEP-20)

Initial Public Allocation

150,000 BELT will be available through an Initial Public Allocation event through a PancakeSwap IFO
22,500 BELT will be used for promotions related to the IFO
27,499 BELT will be used for marketing/promotional activities
1 BELT was used to register for a BELT-BNB LP Pair on PancakeSwap

Governance

BELT governance will be added (see roadmap) to decide Belt.fi’s:

Block emission rate (inflation)
mining rate
BELT pool distribution
fees
burn rates

BELT Inflation Distribution

Inflation will be distributed to our pools and LP stakers. BELT will be distributed to all types of pools, independent on whether they are token-based or LP-based. BELT has the role of giving incentive to BSC economies and subsequently acting as a booster for the BSC economy as a whole.

BELT is also a governance token so holders may change this distribution ratio through governance consensus.

Beginning Allocation Ratio

BNB-BELT PancakeSwap LP stakers: 0.5 BELT/block
venus pools stakers in Belt.fi: 0.5 BELT/block
Build Allocation : 0.178 BELT/block. The build allocation will be used to ensure sustainable development and rapid innovation. This equates to about 15% of mined BELT.

Build Allocation

Here are the details behind what’s behind the 15% Build allocation:

No individuals in the company will be directly receiving any of the build allocation. It will managed by the company as a whole.

The main objective of this build allocation is to stabilize operations and governance.

70% of the build allocation

Will be used purely for governance once the full governance system comes out for stability
Will be locked up until then

30% will be used to cover costs when needed (we’re not planning to sell immediately)

5% will be used for marketing
20% for R&D development
5% will be used for operations

For reference, the build allocation for KLAYswap (our Klaytn AMM DEX with over $360M in TVL) is also 15%).

There’s also no build allocation for the Initial Public Allocation.

Deflationary Mechanisms

Belt.fi combines yield optimizing with an AMM protocol. Deflationary mechanisms occur in both process.

50% of swap fees from each swap transaction is used buyback BELT and burned (sent to the delete address). The remaining 50% is given as a reward to liquidity providers.
8% of yield is used to buyback BELT and burned (sent to the delete address). The remainder of the yield is given as a reward to liquidity providers.

The real time deflation can be seen transparently on the Belt.fi website.

As stated above, governance consensus may change the burning rate, block emission rate (inflation), and other factors important to deflation.

Fees

There is a 0.1% Entrance fee on deposits in the venus pool.

The reasoning behind this fee is twofold. Firstly to stop abuse. Secondly, this partly covers the cost incurred when optimizing yield through different protocols. 0.1% Swap Transaction Fee

How and Where to Buy Belt Finance (BELT) ?

BELT is now live on the Binance mainnet. The token address for BELT is 0xE0e514c71282b6f4e823703a39374Cf58dc3eA4f. Be cautious not to purchase any other token with a smart contract different from this one (as this can be easily faked). We strongly advise to be vigilant and stay safe throughout the launch. Don’t let the excitement get the best of you.

Just be sure you have enough BNB in your wallet to cover the transaction fees.

You will have to first buy one of the major cryptocurrencies, usually either Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Binance (BNB)…

We will use Binance Exchange here as it is one of the largest crypto exchanges that accept fiat deposits.

Once you finished the KYC process. You will be asked to add a payment method. Here you can either choose to provide a credit/debit card or use a bank transfer, and buy one of the major cryptocurrencies, usually either Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Binance (BNB)…

☞ SIGN UP ON BINANCE

Step by Step Guide : What is Binance | How to Create an account on Binance (Updated 2021)

Next step

You need a wallet address to Connect to Pancakeswap Decentralized Exchange, we use Metamask wallet

If you don’t have a Metamask wallet, read this article and follow the steps
☞What is Metamask wallet | How to Create a wallet and Use

Next step

Connect Metamask wallet to Pancakeswap Decentralized Exchange and Buy BELT token

Contract: 0xE0e514c71282b6f4e823703a39374Cf58dc3eA4f

The top exchange for trading in BELT token is currently PancakeSwap, and AEX

Apart from the exchange(s) above, there are a few popular crypto exchanges where they have decent daily trading volumes and a huge user base. This will ensure you will be able to sell your coins at any time and the fees will usually be lower. It is suggested that you also register on these exchanges since once BELT gets listed there it will attract a large amount of trading volumes from the users there, that means you will be having some great trading opportunities!

Top exchanges for token-coin trading. Follow instructions and make unlimited money

☞ https://www.binance.com
☞ https://www.bittrex.com
☞ https://www.poloniex.com
☞ https://www.bitfinex.com
☞ https://www.huobi.com
☞ https://www.mxc.ai
☞ https://www.probit.com
☞ https://www.gate.io
☞ https://www.coinbase.com

Find more information BELT

☞ Website ☞ Explorer ☞ Social Channel ☞ Social Channel 2 ☞ Documentation ☞ Coinmarketcap

🔺DISCLAIMER: The Information in the post is my OPINION and not financial advice, is intended FOR GENERAL INFORMATION PURPOSES ONLY. Trading Cryptocurrency is VERY risky. Make sure you understand these risks and that you are responsible for what you do with your money.

🔥 If you’re a beginner. I believe the article below will be useful to you

⭐ ⭐ ⭐ What You Should Know Before Investing in Cryptocurrency - For Beginner ⭐ ⭐ ⭐

I hope this post will help you. Don’t forget to leave a like, comment and sharing it with others. Thank you!

#blockchain #bitcoin #belt #belt finance

What is Belt Finance (BELT) | What is Belt Finance token | What is BELT token