BoringDAO is a decentralized bridge that connects all blockchain assets onto a single platform.
Non-ERC20 tokens can be converted into ERC20-compatible bTokens for usage on DeFi applications on Ethereum.
BoringDAO aims to bring a higher level of security through a double pledge mechanism as well as to provide more incentives for participating users.
boringdao home page
What are BORING tokens?
Currently, BORING tokens are used to redeem the original assets used to mint the bTokens. Upon redemption of the original asset, a 0.2% redemption commission will be charged, and could only be paid using BORING tokens.
BORING can also be pledged to build a tunnel to support other crypto assets, where pledgers become partial owners of the tunnel to earn minting and burning fees.
How does BoringDAO work?
boringdao infrastructure
BoringDAO uses DAOs or “tunnels”to convert assets from other blockchains into the ERC-20 standard. The first tunnel would be made for Bitcoin, called oBTC. For each asset, an exclusive minting tunnel would be created in the form of a DAO, to allow for bi-directional conversion from the original asset into the ERC-20 version and vice versa.
To open a tunnel, users have to pledge at least 500 BORING tokens. Each blockchain asset can only have one existing tunnel. After a tunnel has been created, it will need to be activated by the BoringDAO community where tokens need to be pledged to meet the minimum deposit requirement for tunnel activation. The pledge requirement needs to be met within 48 hours after the initial tunnel creation.
If the activation requirement is met, the tunnel would go live after a tunnel-creation countdown. Once the tunnel is activated, the tunnel creator’s pledge portion will directly be included in the pledge pool.
To further increase the safety of users’ funds, 50% of the tunnel’s redemption commission is placed into a locked insurance pool. The pool is community-owned and can only be used for claims settlement once a community proposal has been met and the referendum is completed. To know more about the mechanics of BoringDAO, you may refer to their documentation or whitepaper.
How do I get BORING tokens?
You can obtain APY tokens by purchasing them from decentralized exchanges such as Sushiswap or Uniswap.
Additionally, there are two other ways of earning BORING -mint mining and using the Boring Farm.
Through mint mining, users who mint bTokens will have to pay a 0.2% commission fee, but they will receive 0.4% BORING rewards based on the minted amount.
On the other hand, the Boring Farm allows users to pledge the bTokens that they have minted in order to farm even more BORING tokens. Pledgers will receive a Pledge Provider (PP) token which can also be staked to get more BOR.
In general, bTokens, PP tokens and liquidity provider (LP) tokens for both bTokens and BORING can be used to generate yield in BORING. 30% of the total supply of BORING would be distributed through the Boring Farm.
