Beta Finance is a permissionless money market on Ethereum which serves as a smart contract for borrowing and lending digital assets on-chain in order to increase the speed of transactions between people who would want to borrow or lend crypto assets.
It is not a banking service, but rather a money market. In this sense, Beta Finance is more like CME- the Chicago Mercantile Exchange- than it is like any traditional bank. Like these exchanges, it does not provide loans or credits to its users; it simply helps them transact among themselves in a way that mitigates counterparty risk.
One of the reasons that CME are successful is because they reduce the cost of transacting by providing a platform in which prices can be determined so people can trade more easily. Similarly, BETA serves as a platform for people to transact among themselves when it comes to the exchange of digital assets.
Without BETA, if people wanted to borrow or lend Ether on-chain, they would have to set up contracts on off-chain solutions or unofficial channels. In this way, the trade of Ether between two people becomes more expensive because they must sign non-standard contracts and pay additional fees. The availability of BETA is novel because it provides a solution where trades between people can be largely free and/or at a competitive price, thereby reducing transaction costs and increasing liquidity in this nascent market.
The Beta Finance Network’s native coin is called BETA, which is an ERC-20 token on Ethereum which functions as the fuel of the network. It allows for a decentralized banking system via lending or borrowing virtual financial assets such as Bitcoin or Ethereum and building trust with both parties involved in each transaction.
Who Are the Founders of Beta Finance (BETA)?
Beta Finance was founded by Alan Lee, an MIT alumnus and former software engineer at Microsoft and Facebook. The project is also backed by prominent investors, including, Binance, Spartan Group, ParaFi Capital, Multicoin Capital, DeFiance Capital, and Delphi Digital. A few of them have partnered with Beta Finance to provide additional leverage on the platform. Through these partnerships, borrowers will be able to borrow large percentages of their collateral.
What is Beta Finance (BETA) used for?
Lending
Beta Finance (BETA) can be used for lending purposes. The platform allows users to lend their assets for any money market available on the platform. By using BETA, users can earn bTokens by attributing their holdings as collateral for any money market listed on BETA’s platform.
In addition, by lending, users may receive a return on their interest rate. The loan procedure is straightforward. Borrowers and short-sellers pay the borrow interest rate, which is paid to the asset’s lender. There is a unique lending pool for each token, offering a layer of safety to lenders as well as a guarantee of receiving the maximum amount of income on Beta Finance via tokens put on the Beta Finance platform.
Borrowing
Beta Finance (BETA) is also used for borrowing purposes. The platform allows users to borrow and lend assets at a lower cost and with more certainty than ever before. Users of the platform can put up assets such as ETH as collateral against their loans, which allows for better interest rates for the lenders and credit for the borrowers.
The money market features of Beta Finance (BETA) solve an important problem in this nascent space- it allows users to borrow money, instead of leaving their digital assets as collateral on haphazard, non-standard contracts. As we all know, digital assets can be volatile due to various factors such as regulatory uncertainty or flash crashes.
Shorting
Just like the conventional shorting mechanism, Beta Finance allows you to borrow tokens through the platform and short them.
What Makes Beta Finance (BETA) Unique?
Beta Finance (BETA) provides a quick and efficient marketplace in which to borrow, lend, and short assets on-chain at competitive rates. It is one of the fastest, safest, and easiest ways for users to borrow and lend money in DeFi.
By establishing advanced tools for carrying out effective shorting operations, Beta Finance provides insight into an aspect of shorting that is mostly overlooked in the DeFi ecosystem. The tool used is called “1-Click Short,” and it works by simply clicking on the buttons to pick the DEX to swap through and stake the freshly switched collateral with the principle in the short position.
Beta Finance accepts a wide range of volatile assets, including meme coins. As such, an isolated collateral approach is employed in order to prevent jeopardizing other open positions. Beta Finance accepts ETH, USDT, USDC, and DAI, with each asset subject to different collateral conditions. USDC has a collateral factor of 90%, DAI has a collateral factor of 90%, USDC has a collateral factor of 90%, and ETH has a collateral factor of 80%.
Furthermore, provisions are made to assign various assets to different tiers depending on their liquidation LTV, safety loan-to-value (LTV), and liquidation bonus tokens.
How Many Beta Finance (BETA) Coins Are There in Circulation?
The Beta Finance token has a circulating supply of 360,000,000 BETA coins in circulation. It has a market cap of $142,887,605 and a max supply of 1,000,000,000.
How Is the Beta Finance Network Secured?
Beta Finance is an ERC20 token built on the Ethereum blockchain. It secures its network by extending the robust security architecture and features of Ethereum’s proof-of-work.
To improve network security, Beta Finance conducts frequent internal code reviews, external code reviews, and incorporates real-time monitoring services. The platform also has a bounty program that rewards white-hats for doing security audits.
How do I buy Beta Finance (BETA)?
BETA is listed on most of the top-tier cryptocurrency exchanges including Binance, Huobi Global, Bitget, DigiFinex, and Mandala Exchange. Simply create an account with one of these exchanges, deposit fiat money, and buy BETA tokens.
Which Cryptocurrency Wallet Supports Beta Finance (BETA)?
The PTPWallet platform supports many cryptocurrencies simultaneously, such as Beta Finance (BETA). Because of its vast use case, it has grown to become one of the most used platforms, as it serves as an exchange and an engine to discover other cryptocurrencies. Users can easily use PTPWallet as their BETA wallet because it offers a simple and interactive interface, making it easy for people to navigate its system.
