B.Protocol and KeeperDAO

B.Protocol and KeeperDAO

Coordination is better than competition. When we coordinate, we build a more efficient world, where protocols grow strong by working together, viewing shared interests as alignment, rather than collision.

KeeperDAO and B.Protocol have been competitors. Both projects were born out of Black Thursday — March 12-13 2020 — when a liquidity crisis struck protocols like MakerDAO and resulted in millions of dollars in losses to depositors.

KeeperDAO and B.Protocol both grew from a desire to ensure that during the next crisis, protocols like MakerDAO, and their depositors, would be protected. We both envisioned new, more efficient infrastructure, and we both set out to build it.

Figure: MakerDAO liquidations during March 12-13

Like twins separated at birth, our two projects took different roads, and we sometimes clashed when our paths converged. As innovators, we are trained to be hyper-competitive. And in a specialized but crucial market such as this one, there seemed to be no room for anything else.

But there was.

When a few interested engineers sat down to examine the design of the B.Protocol Backstop AMM (B.AMM), we realized that if our two protocols worked together, we could create an even better product than either of us are fielding today.

This is the essence of coordination.

We are today announcing a proposed joint partnership that would see KeeperDAO dedicate $5,000,000 to the seeding of new B.AMMs with native support for the KeeperDAO Coordination Game, and an engineering collaboration to bring the Coordination Game to current and future B.AMMs, starting with Liquity’s LUSD.

We are so proud to be launching the first integration of our Coordination Layer with B.Protocol. What better example of coordination could there be, than two worthy rivals joining forces?

The B.AMM+CG is absolutely state-of-the-art. Every protocol with liquidations can benefit from this technology, and we look forward to helping B.Protocol integrate it across DeFi.

-Hazard, CEO of KeeperDAO

By pairing the B.AMM, B.Protocol’s leading liquidity backstop technology, with the KeeperDAO Coordination Game’s ability to harness the best automation on the blockchain, every lending protocol will be able to have a dedicated backstop with the ability to remove risk and rapidly rebalance small, medium, and large liquidations efficiently, in a wide variety of market conditions.

We are excited to collaborate with KeeperDAO and adding another MEV protection layer to DeFi liquidations.

It will improve our B.AMM rebalance procedure, and will make it easier to integrate new projects.

-Yaron Velner, Lead developer and founder of B.Protocol

And for B.AMM LPs, the swift and continuous action of KeeperDAO Keepers will ensure that returns are maximized and loss avoided, boosting profitability and setting a new standard for backstop technology in DeFi.

Read the KeeperDAO governance proposal here: https://forum.keeperdao.com/t/kip-draft-allocate-5m-to-act-as-a-traveling-liquidation-backstop-for-b-protocol-b-amms/261

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