What is Blend?

Blend is a decentralised non-custodial liquidity market protocol on Bitcoin layer 2

Blend is a decentralised, non-custodial liquidity market protocol on Bitcoin layer 2, it has been launched on BEVM, Merlin, B2 Network and Bitlayer.

Blend enables users to participate either as suppliers or borrowers. Suppliers contribute liquidity to earn passive income, while borrowers can take out loans in either overcollateralised (long-term) or undercollateralised (short-term for one block) manners.

Why Blend?

The Blend Protocol is both audited and secure, with its entire framework being open-source. This transparency allows for direct interaction through a user interface client, APIs, or directly with the smart contracts on the Bitcoin network, encouraging the development of third-party services and applications to interface with the protocol, enhancing product offerings.

How do I interact with Blend protocol?

Interacting with the Blend protocol is straightforward: users supply their chosen assets and amount, earning passive income based on market demand for borrowing. Supplying assets also enables users to borrow, using their supplied assets as collateral, which can help offset the borrowing interest rate with the interest earned from supplying.

What is the cost of interacting with Blend protocol?

The cost of interacting with the Blend protocol includes transaction fees due to Bitcoin Blockchain usage, which vary based on network congestion and transaction complexity. Supplied funds are stored in a smart contract, which is public, open source, formally verified, and audited by third-party auditors. Users can withdraw their funds on-demand or convert them into tokenised versions (bTokens) that can be freely moved and traded on the Bitcoin network.

Where are my supplied funds stored?

Your funds are allocated in a smart contract. The code of the smart contract is public, open source, formally verified and audited by third party auditors. You can withdraw your funds from the pool on-demand or export a tokenised (bTokens) version of your lender position. bTokens can be moved and traded as any other cryptographic asset on Bitcoin.

Is there any risk?

No platform can be considered entirely risk free. The risks related to the Blend platform are the smart contract risk (risk of a bug within the protocol code) and liquidation risk (risk on the collateral liquidation process). Every possible step has been taken to minimise the risk as much as possible-- the protocol code is public and open source and it has been audited.

Blend bToken

The Blend bToken is central to Blend's governance, allowing holders to vote on Blend Improvement Proposals (BIPs) and influence the protocol's direction. Additionally, bToken can be staked within the protocol's Safety Module to provide an extra layer of security and insurance, with stakers earning rewards and fees from the protocol.