BlendPrice

(BLEND)

Blend Protocol is a decentralized liquidity market specifically designed for Bitcoin Layer 2 networks such as BEVM, Bitlayer, and Merlin. It facilitates BTCFi (Bitcoin Decentralized Finance) by allowing users to supply and borrow assets across these scaling solutions. The protocol operates as a non-custodial platform, meaning users retain control over their assets through smart contracts. By bridging BTC to these Layer 2 environments, users can access enhanced liquidity and financial services that are not directly available on the Bitcoin mainnet.

Participation usually involves providing liquidity to lending pools or supplying assets to the protocol. Many Blend-associated projects implement a points-based loyalty system where actions such as bridging assets to supported Bitcoin Layer 2s, staking tokens, or maintaining active deposits contribute to eligibility. Users should stay updated on official community announcements regarding snapshot dates and specific chain requirements. Engaging with the platform on LBank and utilizing supported Layer 2 networks are primary ways to build a presence within the ecosystem for future rewards.

The utility varies by the specific project version. For the Bitcoin Layer 2 version ($BLEND), the token is primarily used for protocol governance and as an incentive for liquidity providers. For the Stellar-based Blend Capital ($BLND), the token is utilized in a vote-escrow model (veBLND) to boost yields and participate in governance. It also serves as part of the 'Backstop' module, which acts as an insurance layer for the protocol. In both cases, the tokens empower holders to influence the direction of the decentralized markets.

Security is prioritized through the use of non-custodial smart contracts, ensuring that the protocol does not take ownership of user funds. These contracts undergo rigorous audits by recognized security firms such as PeckShield or Halborn to identify and mitigate vulnerabilities. Furthermore, risk management features like isolated lending pools are often employed to contain potential issues within specific asset groups, preventing a single asset's volatility from affecting the entire platform's stability. Users are encouraged to use secure, reputable wallets when interacting with these protocols.

Compatibility depends on the specific blockchain the project inhabits. For the Bitcoin Layer 2 versions, users should use reputable non-custodial wallets that support the BEVM or Bitlayer networks. For the Stellar-based version, wallets compatible with the Stellar network and Soroban smart contracts are required. Users can often manage their assets through versatile wallet solutions supported by LBank to ensure seamless interaction with various Bitcoin L2 or Stellar-based decentralized applications.

The 'Backstop' module is a specialized insurance mechanism used in Stellar-based lending markets where participants provide liquidity to protect the protocol against bad debt in exchange for incentives. 'Isolated Lending' is a risk containment strategy where assets are categorized into separate pools. This ensures that if a specific collateral type experiences a liquidation crisis, the risk is localized to that pool only. This structure prevents systemic failures and protects the broader liquidity of the protocol from the risks associated with individual, highly volatile assets.