B.Protocol

B.Protocol aims to make lending platforms more capital efficient and stable by incentivizing simple users and professional traders to act as keepers (liquidators of under-collareralized loans).

B.Protocol V1 incentivizes professional traders to act as keepers in MakerDAO and Compound, by letting MakerDAO and Compound users to give liquidation priority to these keepers, in return for sharing the proceeds of the liquidations. This way the miners' extracted profits (MEV) go back to the users of the platform, and the platform enjoys more committed liquidators.

In B.Protocol V2, currently live over Liquity protocol (and soon over bZx and others), users are incentivized to deposit funds that will be used for the liquidation process in order to enjoy the full liquidation proceeds (e.g. becoming the keepers themselves). Users deposited funds are kept in a yield-bearing platform, and when liquidation is needed, their funds are used to execute the trade with 5-10% profit. Finally, a novel on-chain algorithm is used to rebalance the liquidation proceeds back to the originally deposited currency.