The OATH Ecosystem

The Byte Masons are a team that has become synonymous with building highly respected DeFi protocols. Most notably, the yield optimising Reaper Farm and borrowing and lending market, Granary Finance.

While successful protocols, they are only at the beginning of their evolutionary stage. For the past year, the team of over 30 developers have been diligently working to build a full suite of DeFi protocols that fluently intertwine into a vertical DeFi powerhouse.

When I say a full suite, I'm not exaggerating:

• Reaper Farm (Yield Optimiser) 

• Granary Finance (Lending market)

• Ethos Reserve (CDP stablecoin) 

• Reliquary (A new Yield primitive based on maturity)

• Moon ( Social onboarding application )

Reaper Farm

Yield optimiser turned asset management protocol. Reaper Farm plays a critical role in the Byte Mason product suite.

The adaptive base layer. Reaper farm sits beneath all yield applications as a "Financial Automation engine". The protocol optimises the most efficient yield strategies for all assets under management (AUM). The result? Re-hypothecated, Risk averse, highly competitive interest rates. 

Feeding into the other application layers, Reaper Farm generates revenue that is used to buy back and distribute token incentives. Meaning that all distributed incentive tokens experience constant buy-side demand.

Let’s slow it down,

I’m sure you have some questions.

1. What are these other applications?

2. Secondly, what are these other tokens?

Let's start with Granary Finance. 

A lending market primed for evolution. We all know how a lending market works; you provide an asset as collateral, and you earn the interest that borrowers must pay. Simple.  A proven system that runs the rails of DeFi. 

Alongside your standard interest rates, some lending protocols provide additional token incentives. These are commonly inflationary token emissions that often result in protocols inefficiently paying huge amounts for revenue. Unsustainble at best. Check out the comparison between DeFi and tradFi below…

Granary V2 presents a solution. Nitro Pools allow Granary to utilise inefficient and underutilised collateral via routing to other protocols. Imagine a Balancer boosted pool, but for a lending market. 

While on its journey, Granary liquidity routes through the application baselayer - Reaper farm, flowing through delta-neutral multi-strat vaults to generate an additional source of optimised yield. This generated yield is utilised to buy back the protocol's native token - $GRAIN.

$GRAIN will then be issued optimally to users on the lending market. Unlocking an efficient and sustainable system. Unreleased, the token will enter the DeFi realm with the first-ever multi-chain LGE in March this year. 

To summarise, Granary Finance will be a lending protocol where revenue is always => incentives. Unlike almost every other protocol, Granary funds its own incentive structure.  Baller.  But, what about the other product suites?

A pivotal piece of the puzzle. (and frankly, one of the most overlooked upcoming projects in DeFi right now) Allow me to introduce Ethos Reserve. A suped-up, stablecoin reserve monster. 

Made famous by MakerDAO, Ethos Reserve utilises a CDP structure. (Collatarllised Debt Position)  Essentially, the protocol offers users an $ETH and $BTC CDP stablecoin. But, it's far more than that. 

It comes down to 3 unique characteristics: 

1) Managed CDP Vaults

2) 0-interest lending

3) Sustainable incentive mechanism

Managed CDP Vaults

Rather than deposited collateral sitting idly on the protocol, Ethos actively manages the underlying assets within low-risk DeFi yield strategies. Risk management is critical when it comes to the Byte Masons. All strategies utilised are deemed to be the lowest-risk environment possible, and users will always be able to redeem underlying assets from the protocol no matter the state of market liquidity.

 0-interest lending

Ethos Reserve issues interest-free loans denominated in the Ethos Reserve Note ($ERN). And instead of paying interest, users pay a small issuance and redemption fee for positions, a similar concept to Liquity Protocol.

Alright sweet.  So, collateral generates a low-risk yield, but where does it generate this yield? And, where does this yield go? Asking the important questions.

Sustainable incentive mechanism

All asset management is managed by ... can you guess? The Financial Automation engine baselayer - Reaper Farm. Completing the flywheel, Reaper routes assets through low-risk, efficient strategies. This generated revenue then buys $OATH to incentivise $ERN stakers. An incentive system is fluently intertwined. 

OATH

$OATH plays a crucial role. Acting as the governance token for the whole system, oath holders also earn additional benefits. A token with constant buy demand is certainly enticing, but where do you stake it?

These Byte Masons are a smart bunch, rather than single staking they will utilise the most efficient pool in the game. A Balancer 80/20 $OATH / $ETH pool. Most efficient in the game?! What are the benefits of this pool?

1. Deeper liquidity.

2. Hedging and price appreciation relative to $ETH.

3. Efficient and cheaper incentive program.

4. Asymmetric upside potential.

Users who enter this pool will receive a receipt token known as $bOATH (bonded $OATH).

$bOATH stakers earn:

• All Issuance and redemption fees from Ethos loans.

• All trading fees generated by the Reaper farm incentive strategy.

But, how is this yield directed to this pool?

This is pure speculation and not confirmed, but I would imagine...This $bOATH position will utilise a revolutionary new yield primitive developed by the Byte Masons themselves. The Reliquary. 

The Reliquary offers an evolution of the current Masterchef contract. Liquidity mining rewards are no longer based on your staked LP size but also the age or ‘maturity’ of your staked position.

The model also integrates fNFTs as the staked positions receipt token. This primitive essentially incentivises users to hold their position for longer time durations to earn additional liquidity mining rewards. 

To summarise, we have a system in which a token…

• Has constant buy-side demand. 

• Is ingrained in a suite of innovative financial primitives. 

• Utilises an efficient 80/20 pool structure.

• May be utilised in a system that incentivises users to hold for long durations.

A system primed to make an impact. Innovative, efficient and fluently intertwined. All powered by $OATH (and $GRAIN). 

To find out more, make sure to read all the Bebis articles.