Introduction to Burrow Finance

Burrow is a decentralised, non-custodial, pool-based interest rates platform that enables users to supply assets to earn interest, and to borrow against them to unlock liquidity. Burrow is similar in nature to Aave, Compound, and other pool-based protocols.

Burrow runs natively on the NEAR blockchain, a layer 1, proof-of-stake, sharded blockchain with a WebAssembly runtime. The Burrow protocol’s smart contracts are written in Rust.

Burrow aims to unlock liquidity for interest-bearing assets, particularly layer 1 staking derivatives such as stNEAR and stETH. For instance, users of Burrow will be able to deposit stNEAR as collateral, then borrow more NEAR to create a leveraged staking position, or borrow a stablecoin to create a self-repaying position.

Core Features

$BRRR staking:

$BRRR is the native token of Burrow Finance. BRRR token holders can partake in the BRRR staking program, similar to the ve-token model pioneered by Curve. They can stake their BRRR tokens and receive xBRRR tokens. As a result, xBRRR holders will receive boosted rewards for supplying and borrowing on Burrow

Borrowing:

Users can borrow various digital assets by providing their own assets as collateral. For instance, one can deposit stNEAR and borrow additional NEAR or other tokens. This borrowing mechanism helps users to leverage their positions or access liquidity without selling their assets​

Supply:

Burrow allows users to supply a wide range of assets to its liquidity pools. The supplied assets earn interest, providing users with a steady stream of income.

Upcoming Features

Brrr Staking (Live):

• Earn Rewards, Empower Burrow: Lock up your Brrr tokens and earn rewards while supporting the stability and growth of the Burrow ecosystem. Think of it like CurveFinance’s ve-token model!
• How it works:
  • $BRRR: Burrow’s native governance token, distributed to active users and community members.
  • Stake & Lock: Stake your BRRR tokens and earn xBRRR rewards.
  • Longer Lock = More Rewards: The longer you lock your BRRR, the more xBRRR you earn.

Single Net Token APY (Live):

• Maximize Returns, Minimize Risk: Single Net Token APY delivers optimal returns, unaffected by price fluctuations, helping you optimize profits and reduce risk.
• Precision & Potential: Previously, NET APY was applied uniformly to all deposits. Now, we’ve introduced precise differentiation, applying APY to every single token in your portfolio. This allows for potential increases in overall NET APY based on the combined APYs of your tokens.

LP as Collateral (Q2 2024):

• Unlock Your Liquidity: Use your Liquidity Provider (LP) tokens as collateral, expanding your asset usage and increasing transaction flexibility.

Margin Trading (Q2 2024):

• Boost Your Profits: Trade with leverage and amplify your earning potential, expanding your trading strategies.
  

  What is the next feature of Burrow Finance?

  NFT Marketplace Integration

  DEX

  LP as Collateral

  Yield Farming

  Correct! Wrong!

User Incentive

Users can earn in several ways on Burrow Finance:

Hold $BRRR: Every month, burrow will use 40% of the revenue from the stable pool and buy back BRRR. This will give BRRR a price increase

Supplying Assets: By supplying assets to the Burrow liquidity pools,. With over 20 supported assets, users can easily earn profits.

Incentive and TVL

Burrow Finance incentivizes users through various reward mechanisms:

Staking Rewards:

Users who stake $BRRR tokens receive a share of the protocol’s revenue and additional staking rewards, enhancing their returns.

Liquidity Mining:
Participants supplying assets to the liquidity pools earn rewards in $BRRR, increasing their overall yield.

Bug Bounties:

Burrow offers substantial rewards for identifying and reporting security vulnerabilities, with bounties up to $250,000​ (Introduction | Ref Finance)​​ (Burrow Finance)​.