A first introduction to the backd protocol.
backd is a decentralized protocol on Ethereum, which solves the problem of being liquidated, faced by borrowers in DeFi. The backd protocol generates interest for LPs, while protecting borrowers of over-collateralized loans on borrow and lending protocols (e.g. Compound, AAVE) against becoming liquidable.
On backd, liquidity providers (LPs) may deposit funds into asset-specific pools in exchange for pool-specific LP tokens. Pool deposits are employed in two ways.
First, by redeeming LP tokens for the underlying asset, funds in a pool may be used as back-up collateral, ready to increase collateral-to-debt ratios on borrow…
Backd is a trustless and interest generating protocol designed to prevent collateralized loans from becoming liquidable.