Welcome to Bao Finance

Bao is grassroots, community-run, VC-free, and decentralization maximalist. We are building onchain tokenized derivatives, compatible with all of DeFi. The sheer scope of the derivatives market is staggering. According to the Bank of International Settlements, the notional value of all active derivatives contracts worldwide surged to an astounding $2.5 quadrillion by the close of 2022. To put this into perspective, this amount is more than 30 times the total global GDP, highlighting the immense size and influence of the derivatives market on the world's financial landscape.

Decentralized, on-chain derivatives offer increased accessibility, reduced counterparty risk, enhanced transparency, lower costs, new innovative markets, 24/7 trading, and improved security. On-chain tokenized derivatives will transform the way we interact with and leverage information. Markets and data will be accessible and actionable for everyone, moving the power of information from institutions to individuals. Goodbye Moody’s, Meridian, Experian, Fannie Mae, and others.

Hello BaoBanks.

What is a Synthetic token or Synth?

Throughout these documents, there are many references to synths or synthetics. A synth/synthetic is just a token with a value linked to a price feed or other data source. Bao's synthetics are always fully backed with the best possible decentralized collaterals, like ETH, and protected by proven safety measures like loan liquidations and stability pools. The price of our synthetics is enforced with a fixed price in our borrow vaults, liquidity balancers, and variable interest rates. Once it is live, synths will also be mintable/redeemable for collateral of the correct value with The Minter.

Community-Governed

Bao Finance uses a locked staking mechanism called veBAO (voting escrow BAO). By locking up BAO for more extended periods, holders gain more voting power to shape the protocol and earn a boost to revenue on the platform. Liquidity tokens can be staked to earn a share of revenue. This puts control and more significant rewards in the hands of committed long-term community members.

We invite you to join our community and help push the frontiers of decentralized finance together.

NextSynth Use Cases

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