Next up in our series of our interviews with DeFi's most promising projects is Bella Protocol, a one-stop shop platform for working with all of the DeFi market. We spoke to the team about their mission, technical developments, tokenomics, and plans for the future, in addition to going into detail about specific features.
Here's the list of shortened questions:
1. The Bella Protocol mission
2. Bella Protocol growth
3. Best resources to track growth metrics
4. Liquidity mining programs
5. Smart mining with Bella Flex Saving V2
6. Investors and backers
7. Upcoming developments for 2021
1. Was there an ‘AHA’ moment where you realized that the DeFi market needs a platform like Bella DeFi Suite?
In July 2020, our team administered a DeFi questionnaire targeting blockchain practitioners, blockchain users, crypto holders, cutting-edge technology enthusiasts, and other blockchain-related users in crypto communities. The questions in the survey concerned the use of wallets and DApps, the participation of liquidity mining, and the pain points of using DApps in China and abroad. The Chinese version of the questionnaire collected more than 300 valid responses. The English version received more than 400 valid responses.
From the survey, we found three major pain points for users who wanted to get involved with DeFi: high gas fees, difficulty in interacting with smart contracts, and bad user experience. Our team consists of experienced, smart contract developers, finance professionals, and crypto veterans. We share a vision of a more transparent, distributed, equal, permissionless, seamless, and frictionless financial infrastructure. Therefore we incubated Bella Protocol in early 2020 with one goal in mind: to bring mass adoption to DeFi and crypto by lowering the barrier to entry: a product suite designed with lower cost, seamless user experience, and innovative use cases.
2. It’s clear that there is a huge demand for DeFi yield services, with the total TVL well past $100 billion. With many protocols offering similar services, how much of the market do you think you can capture?
DeFi is growing at an unprecedented speed. Total value locked grew from 600 million USD to over 100 billion USD in just under a year. We are still at the early stage of the decentralized era -- just right after Netscape emerged if we make a naive comparison to the internet era. Many improvements are needed at the infrastructure level, and there need to be better tools to help developers build on chains and protocols, and eventually more capital and liquidity in the whole ecosystem. Our goal is to facilitate the change and bring mass production to this industry by offering a product suite with lower cost, seamless user experience, and innovative use cases.
Our first product, Bella Flex Savings was launched on Ethereum less than three months ago, with TVL now exceeding $40mil and steadily increasing. We plan to research, experiment, incubate and invest in innovative products that might spur adoption and user growth within our ecosystem.
We are also in the process of integrating with more blockchains such as Binance Smart Chain. Solutions like BSC and layer 2 on ethereum will make our product much more scalable, more accessible, and cheaper to use, eventually attracting more users in the future.
3. Do you have a dashboard where users can get a comprehensive view of the growth and performance statistics of Bella Protocol?
Bella’s Flex Savings is integrated with DeFi dashboards such as DefiLlama. As we work with more partners and get integrated with different protocols, there will be more exposure and awareness.
4. Bella Protocol currently has three liquidity mining programs - BEL/USDT, BEL’/ETH and ARPA/USDT. Are there plans to include more programs across other AMMs?
Yes. An inherent characteristic of DeFi is interoperability, protocols stack on each other just like Lego, combining functionality and sharing liquidity. This applies not only to protocols on Ethereum but also across different chains. We are exploring options such as Binance smart chain, Solana and Polkadot.
5. What is the smart mining program Bella Flex Saving V2, which you recently released, all about?
Flex Savings v2 is essentially a smart pool that routes funds to DeFi protocols with the most competitive return. In essence, we strive to help our users achieve the most attractive, risk-adjusted return in the market. Think of Flex Savings as a hedge fund, but more transparent, efficient, and decentralized.
With Bella Flex Savings v2, users can deposit stablecoins and supported tokens to earn attractive yields automatically. The smart contract then automatically routes the fund to different mining pools under ever-updating investment strategies.
In Flex Savings v2, we have implemented our earnings strategy on Curve.fi. With the current baseline yield on 3pool, users will see a higher return than the market standard with a $BEL liquidity mining program. As time progresses, we, along with our community, will reassess all the options out there and adjust our strategies accordingly.
Flex Savings v2 highlight features include:
Optimized portfolio strategies, low gas fee, auto reinvest & compounded return, higher return for staking vesting period, low management fee, and token burn.
6. Some of your biggest investors and partners include Arrington XRP Capital, Binance, and AlphaBit. How have they been helping your development journey?
Without them, we would not have been anywhere close to who we are today -- even though there’s still so much to do and a long way to go. We sincerely thank every early supporter, some even offered a helping hand before we embark on our journey. When a project is solid by itself, investors like Arrington XRP and Binance did not only add credibility to a project but also brought resources such as partners, strategy, and liquidity to the table.
7. Can you give us some insight into what we can expect for the rest of 2021 -- perhaps that we don’t know about yet?
We just published an article elaborating our plan for the remaining three quarters of 2021. Long story short, in 2021, the Bella ecosystem will be more open, inclusive, vibrant, with even more collaborations and integrations with other DeFi legos.
In Q2 2021, We will announce Bella eco fund’s details, mission, the first batch of partners, and its current portfolio in early Q2 2021. The fund's goal is to partner with high potential projects at an early stage to integrate with Bella Flex Savings and bToken on the product level.
In Q3 2021, We will venture into the world of NFT and DAO. We will explore the possibilities of different use cases of NFT, from blind-boxes to card games and farming. Bella team is designing an infrastructure to simplify the onboarding process for creators and brands and provide a platform for new use cases for NFTs.
We plan to launch the Bella DAO governance system in Q3 2021. Soon, all BEL holders will be able to have a say in community governance, submit proposals, and vote on changes.
In Q4 2021, we will introduce Bella Launcher & Bella Incubation Program. The incubated DeFi projects will benefit from Bella’s global, active, and supportive community. They will also receive advice and resources like tech support, funding, marketing, and liquidity bootstrapping. In return, BEL holders will enjoy extra returns from the incubated projects’ growth and success.
For more information on Bella Protocol, check out their various channels here:
The Publish0x team will publish more interviews with up-and-coming DeFi projects in the weeks to come. Stay tuned for these!