Introducing the world's first LSDfi protocol with an exclusive 10-15% cashback on all credit/debit card transactions.
Deposit $eUSD and other yield bearing stablecoins as collateral to mint & borrow $BCK. The $BCK loan is interest free! You can either earn APY on BCK or use BCK in any DeFi Protocols.
Earn ~ 6-5% APY on your collateral $eUSD.
Earn ~ 5% APY by depositing $BCK into BCK savings account, (~8% altogether)
Stake 2.5% of the minted BCK amount you’ve taken out in BCKGov to earn BCKGov emission rewards
Initially, the cashback web app will be invite only. We will onboard more users as we receive more validator rewards.
Connect your Visa, Mastercard, or Amex card to our platform. Cashback rewards doesn't include money transfers and forex.
We will track your spending and offer you 10-15% cashback on every transaction. The spending limit can roll over to the next day if not fully used. (i.e if £20 is spent and £35 is the daily limit, then the next day £50 is the limit.
Crypto users can utilise $eUSD and other LSDFi stablecoins as collateral to mint $BCK. We allocate 20% of the yields from the $eUSD collateral in three ways:
1. BCK Savings Account
2. Cashback App
3. Protocol revenue.
Users can deposit their $BCK into the BCK Savings Account to earn yields from the collateral and additional yields from protocol treasury-funded validators. To offset the APY loss from yield distribution, users can stake 2.5% of their minted BCK in BCKGov to earn BCKGov emissions and mitigate APY reduction.
When Cashback app users receive cashback in USDC or peUSD, they have the option to convert it to $BCK on a 1:1 basis and stake it in the BCK Savings Account for extra yields. The resultant rise in $BCK demand increases its price, this incentivises more $BCK mints, to help to restore the price to a 1:1 equilibrium with $eUSD meaning more TVL on the crypto side.
Earning interest on your USDT or USDC is a straightforward process. Simply exchange your stablecoins for BCK on a decentralised exchange (DEX). Then deposit this BCK into the BCK savings account to begin accruing stablecoin yields in USDC.
The $eUSD interest in the BCK Savings Account stems from Bound Finance's collateral backing $BCK. When users deposit $eUSD / LSDFi yield bearing assets and receive $BCK, a portion of this yield is consistently allocated to the BCK Savings Account and shared amongst all $BCK depositors. Moreover, these yields are enhanced by sTETH yields, converted into $eUSD, originating from the protocol's treasury ETH, which is replenished from protocol earnings. As a result, BCK depositors benefit from a stable yield-bearing interest, with a base APY of approximately 6%. For crypto users, this is in addition to the existing yields generated from their $eUSD/LSDFi Stablecoin collateral itself, as well as their BCKGov emissions.
Bound Finance is targeting mainstream adoption by providing an accessible and rewarding financial solution. With our web app (and soon-to-be-released iOS and Android versions), users can link any existing debit or credit card and earn a substantial 12% cashback on almost all purchases. This includes typically non-qualifying transactions like rent, utility bills, and car payments. Significantly, these benefits are extended with no requirement for token staking or service subscription from the cashback app user.Furthermore, users can stack rewards, earning cashback from both their card providers, like Amex, and Bound Finance simultaneously. This model is designed to incentivise mainstream users by leveraging the yield generated from LSDfi loans taken out by crypto enthusiasts. The aim is to not only make crypto more accessible to everyday users but also stimulate the crypto community to engage more with our services. We encourage users interested in understanding our model more deeply to review our white paper.
Minting or borrowing BCK involves depositing a $eUSD. This deposited amount then serves as collateral, allowing you to mint BCK at the protocol set collateral ratio, default its 1:1.
Bound Finance's Cashback app operates on a "daily allowance" model, initially set at $30, which rolls over any unused allowances. Users receive cashback rewards in fiat U.S. dollars, ranging between 10-15% per transaction, which can be withdrawn to a user's wallet after a 14-day buffer period to account for potential returns or refunds. The app is compatible with all credit and debit cards and works in conjunction with existing credit card rewards programs. It integrates with the Plaid API for transaction tracking and dynamically adjusts cashback allowances and rates based on LSDFi stablecoin / yield bearing assets rewards/yield. Users can accumulate daily allowances for more significant purchases. This not only enables users to buy higher-priced items or services with cashback where they originally couldn't with other alternatives, but it also allows the protocol to earn enough yield to pay for these transactions' cashback, ensuring equitable cashback benefits regardless of fluctuations in LSDFi stablecoin yields.
No, Bound Finance does not impose any fees for minting or borrowing.
Bound Finance operates on a unique spending limit model where users' daily spending allowance grows by a set amount, for instance, $50 each day. This allowance accumulates indefinitely, so if a user abstains from spending for a week, their limit reaches $350. Upon making a purchase, the cost is subtracted from this accumulated limit, and users receive a default cashback of 12%.
The daily rate which spending limit increases by in the cashback app is determined through the following formula:
Daily Increase in Spending Limit Rate = LSDFi Stablecoin or Yield Bearing asset allocation
given to Cashback App
Cashback rate x Number of User