What Is Beta Finance (BETA)?
BETA is the native token of Beta Finance, which is an Ethereum-based permissionless money market. Users can short, lend, and borrow crypto through the Beta Finance platform. If you’re interested in the current or the previous BETA price, make sure to analyze the Beta Finance price chart placed above.
There are four main roles on the Beta Finance platform:
- Lenders. They are able to earn interest by lending their tokens to Beta Finance markets.
- Borrowers. They are able to borrow the assets that are lent to Beta Finance by lenders.
- Short-sellers. They are able to take short positions by using collateral. Shorting is a trading strategy that happens when a trader borrows crypto assets and sells them in a crypto exchange at the current price. Then, after some time passes, the trader buys the assets from the market, hopefully at a smaller price, and pays back the borrowed assets.
- Liquidators. They have to monitor the network in order to spot and liquidate under-collateralized positions. For doing that, they receive bounty rewards.
All trades on Beta Finance are made through AMM-based decentralized exchanges. Besides, by utilizing the 1-Click Short function, users can choose through which DEXs they want to open short positions.
The main crypto assets supported as collateral on Beta Finance are DAI, USDT, USDC, and ETH. However, the platform also allows users to choose more volatile and risky assets since it employs an isolated collateral model. Such a model ensures that the assets of the user are safe even when there is a compromised asset on the market. Though volatile assets have a smaller loan-to-value ratio (50% or less) than more stable assets do (75%).
To secure the Beta Finance network, all platform’s funds are kept on USD bank accounts and multi-sig cold storage wallets. The multi-sig wallets utilized by Beta Finance have five key holders. In order to do anything with these funds, at least three key holders have to agree.
The Founder of Beta Finance
The Beta Finance crypto project was founded by Allen Lee. He has a degree in electrical engineering and computer science. Prior to founding Beta Finance, Lee was a researcher at the Massachusetts Institute of Technology and Microsoft. Besides that, he was a software engineer at Facebook, an engineer at Cruise Automation, and a data scientist at nference.
Use Cases of BETA Tokens
BETA tokens are built based on an ERC-20 token standard. However, there’s also a version of a BEP-20 token that runs on the BSC. Don't forget to check out the Beta Finance price chart placed above. The following are the main use cases of BETA tokens:
- Governance. BETA token holders are able to participate in the decision-making processes of the Beta Finance crypto project.
- Liquidity mining. To facilitate borrowing and short selling, liquidity providers have to stake their assets in the lending pools of Beta Finance. For doing that, they receive BETA rewards.
- Staking. BETA tokens can be staked in order to secure the network and receive staking rewards.
Tokenomics of BETA
The Beta Finance tokens have a max supply of 1 billion. 25% of the supply was dedicated to the Binance Launchpad, the Alpha Finance Launchpad, the seed, and the strategic sales. The remaining portion of the supply was set aside for the team, the Beta Finance ecosystem, and the liquidity mining.
Though if you have any intentions of purchasing Beta Finance tokens, you must keep in mind that the BETA price is affected by the fluctuations of the entire crypto market. Thus, BETA is a volatile asset just like most crypto assets are.
