Beyond Finance (BYN) is a decentralized platform for creating and trading synthetic financial products designed to suit the needs of the synthetic creator. These synthetic products can be made to track prices of underlying assets, such as currencies, commodities, stocks, exchange-traded funds and more. Each synthetic product can be made to represent $1 or more complex products, such as leveraged/inverse ETFs. What is Beyond Finance (BYN) | What is Beyond Finance token | What is BYN token
In this article, we'll discuss information about the Beyond Finance project and BYN token
Beyond is a decentralized platform for creating and trading synthetic financial products designed to suit the needs of the synthetic creator. These synthetic products can be made to track prices of underlying assets, such as currencies, commodities, stocks, exchange-traded funds and more. Each synthetic product can be made to represent $1 or more complex products, such as leveraged/inverse ETFs.
These synthetic products are governed by the Beyond protocol and collateralized by BYN tokens. Deep liquidity is created for synthetic products through our automated market maker that is built on our protocol. Bid/ask orders can also be used on the trading interface for controlled trading orders. BYN token holders are incentivized to stake and provide liquidity to the synthetic products, as it allows the token holders to be rewarded with additional BYN tokens.
BEYOND FINANCE, is a novel way to access synthetic assets, bringing the traditional financial services to the global crypto community.
Beyond’s DEX will simplify Synthetic products trade, and provide new opportunities.
BEYOND FINANCE is led by a team of portfolio managers, investment research analysts and experienced blockchain developers from financial hubs across Singapore, South Korea, Hong Kong and USA.
Team Background and Advisor.
Team Background and Advisor.
We are dedicated to innovate on permissionless finance and accelerate DEFI.
Go Beyond, a new dimension of optimized financial synthetic assets.
Beyond synthetic products track the underlying asset price of the asset. Each synthetic product is backed by Beyond (BYN) tokens and a shared pool of collateralized BYN tokens are used to back the synthetic products with a collateralization ratio of 300%.
The initial collateralization ratio is set to be 300% to ensure that there will be sufficient collateral when liquidating BYN tokens if there is a margin call on debt incurred by users who issue synthetic products. This initial collateralization ratio can be reduced further to 150% in the future as liquidity is developed. Beyond is able to achieve low collateralization ratios by providing incentives to deepen the liquidity pool for various BYN related pairs.
To create a synthetic product, users will send their BYN collateral into a shared pool which is used to back all synthetic products created on Beyond. Our integration with Chainlink and other price oracles determines the exact amount of BYN required to create the synthetic products and the number of issued synthetic tokens. The user creating synthetics will incur debt which records the total amount of synthetic tokens owed by the user. (e.g. a user locks 3 USD worth of BYN tokens to issue 1USDb of debt).
These created synthetics exists as ERC20 tokens on the Ethereum blockchain and will track the price of the underlying asset. For users who are creating a brand-new synthetic product, they will also be required to seed the initial liquidity for the synthetic product by being a liquidity provider on the exchange. This is to ensure that the price of each created synthetic product will have liquidity for trading and can track the underlying asset prices accurately.
These created synthetic products can also be converted back into BYN tokens through a similar mechanism. Users will simply have to repay their debts by sending their owed synthetic tokens into the smart contract and their BYN tokens will be unlocked.
Orderly Liquidation Mechanism (OLM)
Technically, each synthetic issued on Beyond represents a claim on the underlying collateral used to create the synthetic. Under normal circumstances, the claim can only be made by the same user that created the debt. However, there remains the possibility that the collateral used to create the synthetic may fall below the value of the synthetic, resulting in a less than 100% collateralization ratio. This can potentially erode the market confidence in the value of the synthetic hence an orderly liquidation mechanism is needed.
Beyond OLM works as such:
• If collateralization ratio falls below the threshold of 150%, a margin call will be posted to the users with existing debt.
• If no additional collateralization is provided, and collateralization ratio falls below the threshold of 125%, the OLM will start to liquidate the collateral automatically through designated liquidity pools within the Beyond Protocol.
• The liquidated BYN tokens will be used to repurchase the synthetic debt owed through the Beyond Exchange and repaid.
• A 2% penalty fee will be levied and added into the insurance fund and excess funds will be returned to the user if any is left.
The liquidation mechanism has these features built in:
1. Liquidation Insurance Fund: In the event that a liquidation occurs, excess proceeds of the liquidated collateral will be added into the liquidation insurance fund which will be used in the event of the unlikely scenario where the collateral is insufficient to liquidate the debt. This also provide users with the incentive to do a safe payment of their debts or to add more collateral to their positions resulting in a healthier ecosystem.
2. Partial Liquidation: As opposed to liquidating the entire position of the user, the system will only liquidate enough BYN tokens to bring back the collateralization ratio back to the acceptable risk level of 150% collateralization ratio. This reduces the chance of users losing everything and helps to protect the assets of the users.
3. Oracle and Time Delay: The liquidation engine uses secondary price feeds from multiple sources to determine the value of the collateral to prevent potential exploits and forcing liquidation. We also include a time delay mechanism of 15 minutes to ensure that liquidation only occurs if the collateralization ratio for the debt remains below 125% for more than 15 minutes. This prevents potential exploits from malicious actors who may seek to manipulate the price of BYN tokens or synthetics to force a liquidation event and cause losses to the users.
Synthetic pegging mechanism
Maintaining and tracking the underlying asset prices accurate is of utmost importance for Beyond. Hence, the price of each synthetic is maintained through the following mechanisms:
1. Arbitrage: If the price of a synthetic deviate from the actual underlying asset price, there are opportunities for arbitragers to profit. For instance, if the price of the synthetic is higher than the underlying asset price, arbitragers can issue additional synthetic tokens and sell it directly on the market. Conversely, if the price if the synthetic is lower than the underlying asset price, arbitragers can buy the synthetics and use it to unlock the corresponding value of BYN tokens.
2. Synthetic Auctions (Experimental): If the arbitrage opportunities are insufficient to eliminate price inefficiencies, users will have the opportunity to buy synthetics at spot prices using BYN tokens to eliminate price premium. Conversely, users can buy synthetic at existing low prices and redeem it for BYN tokens at spot prices to eliminate price discounts. These synthetic auctions will take place once there is a price discrepancy of more than 10% from the underlying asset price and quantum of buying/ selling opportunity depends on the volume that is expected to be needed to restore equilibrium in prices for the synthetics. This auction mechanism will be pre-funded by the Beyond team with BYN tokens to ensure equilibrium. We expect that the total number of BYN tokens in the auction funds will remain neutral in the long run.
Incentive for Investing Synthetics and providing liquidity
In the ideal scenario, majority of BYN tokens will be staked and used to invest synthetic tokens. This ensures that there is a large variety of synthetic products being created and there is sufficient liquidity and depth for users. The incentive provided for investing synthetics are:
1. When BYN token are staked, tokenholders will be rewarded with additional tokens, in line with the staked period and staked amount
a. Staked BYN tokens can be used to vote on governance protocols to steer the direction of the Beyond protocol. Non-staked BYN tokens cannot be used for voting.
b. Users must have voted on governance protocols within the past 30 days to qualify for receiving rewards.
2. Each synthetic token that users create will reward with a portion of newly minted BYN tokens as added incentive.
a. The purpose of this is to reward users for the high Ethereum gas fees associated with the creation of synthetics.
b. For avoidance of exploits, the ratio of reward is priced at approximately 75% of the total cost of creating the synthetic. This subsidizes the cost of creating synthetics but does not create a dilemma where users may be able to gain from creating and destroying synthetics.
3. Liquidity pools, such as BYN-ETH, BYN-USDT, BYN-WBTC, will be created on decentralized exchanges including Beyond Exchange and Uniswap. This list may be expanded in the future and liquidity pool contributors will receive reward in the form of newly issued BYN tokens.
a. Liquidity pools are incentivized to create deep liquidity for BYN tokens which in turn, reduces potential slippage when liquidating BYN tokens in the event of under-collateralization and liquidation. Hence, lower collateralization ratios can be used where there is deep liquidity for BYN tokens.
b. Lower collateralization ratios make it less capital intensive for users of BYN platform to invest synthetics, hence providing significant value to the BYN community.
Overall, this mechanism ensures that BYN tokens that are on centralized exchanges or that are not actively participating in the Beyond protocol activities cannot be rewarded with additional BYN tokens.
The same BYN token can qualify for rewards in multiple pools. For instance, BYN tokens which has been staked to mint synthetics, will be rewarded with additional BYN tokens in line with the staked period and amount. In addition, receive newly minted BYN tokens as reward for minting synthetics. Also, if they use their staked BYN tokens for voting, they will also be rewarded additional BYN tokens for active participation in governance.
The Universe of Synthetics
These are the planned categories of synthetics to be included into Beyond. Note that the list is not exhaustive and there are plans to include more than the specific synthetics listed below:
Foreign Exchange Currencies – e.g. synthetic currencies such as
a. 1 USDb = 1 USD b. 1CNYb = 1 CNY c. 1 JPYb = 1 JPY
a. Brent oil synthetics b. WTI oil synthetics c. Gold/Silver synthetics
a. Bitcoin synthetics b. Ethereum synthetics
a. Inverse/leveraged products synthetics b. Futures/options synthetics c. Structured products synthetics d. Volatility index synthetics
a. NASDAQ, S&P index synthetics b. Shanghai SE, Hang Seng index synthetics c. Major global single stock synthetics (i.e. Tesla, Google)
The final goal of governance on Beyond is to become a Decentralised Autonomous Organsation (“DAO”). However, the initial stage of launch can be delicate with some degree of centralized control required to ensure that the project can grow into a self- sustaining ecosystem.
As such, Beyond will be led through benevolent dictatorship by the core team. Through our established community channels, users can submit feedback and contribute to the project which will be evaluated and implemented by the team. After the ecosystem gains critical mass, the team will begin to transition to a new decentralized governance model. This initial centralization of BYN will enable the team to develop faster and keep the system safe in the early stages.
To participate in Beyond Governance, each stakeholder must have at least 50,000 BYN tokens actively staked within their wallets. This enables the stakeholder to have a BYN-weighted vote, where 1 BYN token is equal to 1 vote. Stakeholders are incentivized to actively participate in governance through added reward given for active voting. This also helps to reward the stakeholders for associated cost (e.g. gas fees on the Ethereum network) for participating in governance.
A governance portal will be created to specifically manage discussions and execute all governance related matters for stakeholders.
Beyond Improvement Proposal (“BIPs”)
BIPs can be submitted at all phases of the Beyond project. In the initial phase, all submitted BIPs will be evaluated by the core team. In later stages, the Beyond DAO will evaluate and review the submitted BIPs.
Submission of BIPs can be done on the governance portal and the format for BIPs is based on Ethereum Improvement Proposals (“EIPs”). We expect that the BIPs will primarily focus on decisions relating to issues such as the creation of new synthetics, adjustments to reward structure of Beyond, trade front-running protections, new feature implementations, among others.
BIP proposal page is divided into multiple related sections, such as; new asset pair creation, reward & distribution ratio change, addition of new functions, UI improvement suggestions etc. This will help to establish more organized proposal management, as well as prevent irrelevant list of proposals running all over the page.
Beyond Governance Discussions
Through the governance portal, stakeholders can also schedule for community calls to discuss via video conference or live chats to discuss BIPs in detail. The core team will also participate in all these calls in the early stages given the extent of control that the core team has. The plans in the long run is for the Beyond protocol to be fully run and managed by the DAO.
Beyond Grants and Bounty
To ensure continual development and security of the project, a treasury fund controlled by the DAO will be implemented. This treasury fund will be initially seeded by the core team as there may be uncertainty on the value of BYN tokens in the early stages. In the long run, a portion of newly issued BYN tokens will be sent to the treasury fund (subject to a cap of 1,000,000 USD worth of BYN tokens).
This treasury fund can be used to give grants to developers who are actively contributing to the BYN ecosystem, be it through the form of one-off grants for the building of complementary third-party software to the BYN ecosystem or other related costs of maintaining ongoing services for BYN.
The treasury fund will also be used for bug bounties and the payout depends on the severity of bugs discovered.
How does the synthetic Works in the Beyond Protocol?
Step 1. -User Purchase the BYN Token (Beyond Platform, DEX and CeFi exchanges) Step 2.- Stake the BYN TOKEN and get Synthetic Token USDb. Receive Staking reward based on the staked BYN amount. Step 3. -Trade/Invest USDb for multi asset synthetic products in Beyond DEX. Step 4.- Earn Profit from investment/Trade. Step 5- Redeem BYN token.
What is the first step to participate in the Beyond Protocol?
Staking BYN token, then invest in synthetic to trade synthetic products in the beyond exchange.
Why stake BYN?
1. Stake BYN to receive the staking rewards. 2. Staking BYN allows the BYN holder to invest (mint) synthetic assets and earn additional rewards in BYN. 3. Stake BYN to earn the portion of trading fee from the Beyond Exchange.
Further if the BYN holder, stakes at least 50,000 BYN, the stakers is eligible to participate in the Beyond Governance via voting and every participant is rewarded with the BYN token for the contribution.
What do BYN staker need to do?
BYN staker need to maintain the collateralization ratio of 300% and manage their own ratio by either redeeming (Burning) the USDb to increase their ratio or investing (minting) USDb to reduce it. By doing so, the user can collect the rewards.
Where do I get the BYN token?
From then Beyond Exchange, swap with your ETH and get BYN token. Alternatively BYN will be available in the other DEX and Centralized exchange.
What do you mean by Invest synthetic?
For the ease of understanding and for the greater mass adoption, invest synthetic here in refer to the aka mint in the Blockchain Defi world. It simply means that BYN token will be collateralized with the ratio of 300% to issue an synthetic USDb.
What do you mean by collateral ratio of 300%?
The ratio of collateral of 300% is used to backed the each synthetic invested. For instance a user locks 3USD worth of BYN token to invest 1 USDb in the share pool.
What is the redemption fee and how much and how is the redemption fee implied or calculated?
Redemption fee is for those staker to motivate to stake more and to prevent from selling the reward token and to maintain the BYN price and circulation.
To promote and intensify our early investors to stake their reward tokens as long as possible (possibly close to 12-months). The redemption fees are applied. For instance, the following example is to set a redemption fee deduction schedule to the reward tokens.
1) On M+0, 100 reward BYN tokens are distributed to an investor, and automatically staked.
2) If the investor immediately unlocks the reward token, 90 BYN tokens (90% of total reward) would be sent to the foundation’s wallet and the investor only receives 10 BYN tokens. (Which means the investor has 90% fee for early redemption)
3) If the investor waits until M+1 and unlocks the reward token, then 80% BYN tokens (80% of total reward) would be sent to the foundation’s wallet and the investor only receives 20 BYN tokens. (Which means the investor has 80% fee for early redemption)
4) When it becomes M+2, then the penalty will go down to 70%, and so on and so forth.
5) Redemption fee rate goes down as time passes, and when it reaches M+9, investors can unlock and receive 100 BYN tokens without any redemption fee.
What do I do if my wallet is not connecting to the Beyond Platform?
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You will have to first buy one of the major cryptocurrencies, usually either Bitcoin (BTC), Ethereum (ETH), Tether (USDT)...
We will use Binance Exchange here as it is one of the largest crypto exchanges that accept fiat deposits.
Binance is a popular cryptocurrency exchange which was started in China but then moved their headquarters to the crypto-friendly Island of Malta in the EU. Binance is popular for its crypto to crypto exchange services. Binance exploded onto the scene in the mania of 2017 and has since gone on to become the top crypto exchange in the world.
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)
Step by Step Guide : What is Binance | How to Create an account on Binance (Updated 2021)
Next step - Transfer your cryptos to an Altcoin Exchange
Since BYN is an altcoin we need to transfer our coins to an exchange that BYN can be traded. Below is a list of exchanges that offers to trade BYN in various market pairs, head to their websites and register for an account.
Once finished you will then need to make a BTC/ETH/USDT deposit to the exchange from Binance depending on the available market pairs. After the deposit is confirmed you may then purchase BYN from the exchange: .............
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 BYN 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!
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Find more information BYN
Twitter: https://twitter.com/beyondfinancee Website: https://beyondfinance.io/ Reddit: https://www.reddit.com/user/BeyondFinance_io Medium: https://medium.com/@bfinance Telegram Channels: Global Community: https://t.me/beyondfinanceglobal News Channel: https://t.me/beyondfinancenews
🔺DISCLAIMER: Trading Cryptocurrency is VERY risky. Make sure that you understand these risks if you are a beginner. The Information in the post is my OPINION and not financial advice. You are responsible for what you do with your funds
Learn about Cryptocurrency in this article ☞ What You Should Know Before Investing in Cryptocurrency - For Beginner
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Wallet address: BTC: 1FnYrvnEmov2w9fovbDQ4vX8U2dhrEc29c USDT: 0xfee027e0acfa386809eca0276dab286900d75ad7 DOGE: DSsLMmGTwCnJ48toEyYmEF4gr2VXTa5LiZ
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