Bagels Finance — The All-In-One Leverage Yield Farming Tool + Lending Platform + Cross-chain Transaction Executor + Oracle

Bagels Finance
5 min readMay 29, 2021

The complementary nature of DeFi projects in the ecosystem has resulted in the birth of many unique and innovative projects such as Alpha, Compound and ChainLink, etc.

Current DeFi projects together are enabling the ecosystems to improve liquidity and capital utilization through connectivity, but there are limits to this interoperability. For instance, DeFi protocols built on one blockchain cannot interact with protocols built on another blockchain. For example, a DeFi application built on Ethereum can only interact with other protocols built on Ethereum. Bagels Finance is one such solution to solve the bottleneck and allow more connectivity for protocols / Dapps on different blockchains.

Bagels Finance is providing the revolutionary ability for users to have access to execute cross-chain transactions while doing leveraged yield farming. Cross-chain interoperability will open up even more unique ways for users to quickly transact and earn better returns, and lenders will participate in the market to provide even more liquidity.

Below we’ll explore the most impactful projects in the crypto space and how their unique value has shaped Bagels as a game-changer in the DeFi space.

Leveraged Yield Farming: Alpha

Alpha Finance was the first leveraged yield farming project to open for mass use. Alpha Finance is a DeFi ecosystem based on BSC and Ethereum. Alpha has three key innovations:

  1. Asset utilization rate
  2. Perpetual contract tokens
  3. Reduced slippage through dynamic factor K.

Through these innovations, Alpha dramatically improves the utilization of funds, maximizes user investment returns, and minimizes exposure/ downside risk.

Lending Protocol: Compound

Compound, one of the creators of the lending segment, is an open lending protocol that allows users to stake their crypto assets and earn mining rewards. It was the first project to use liquidity mining to distribute native tokens, launched with the idea of a completely decentralized the governance of its platform through tokenization. The explosion of Compound has completely fueled the rise of the DeFi ecosystem. Before Compound, DeFi was a relatively new concept with little understanding in the crypto community. Compound sparked the realization of the future value of DeFi in the crypto ecosystem.

Cross-chain solution: Polkadot

Interoperability has been a key area of development within the blockchain sphere as it allows more scalable and easy to use decentralized applications. The advancement of cross-chain protocols was a strong booster in this most recent bull market. Polkadot is a cross-chain protocol composed of:

  • A relay chain, responsible for the network’s shared security, consensus and cross-chain interoperability.
  • Parachains, which are sovereign blockchains that can have their own tokens and optimize their functionality for specific use cases. These chains can be public or private and share information with one another. And
  • Bridges, which allow parachains and parathreads to connect and communicate with external networks like Ethereum and Bitcoin.

This unique structure helps Polkadot achieve interoperability, scalability and shared security.

DeFi Oracle: ChainLink

ChainLink is a decentralized oracle network that securely links smart contracts to data and services outside of the blockchain. The ChainLink oracle plays a very significant role in the rise of the DeFi ecosystem.

When DeFi applications are connected to the Chainlink oracle it allows them to obtain different data such as asset feeds and rates; verify asset collateralization rates. Chainlink also enables various advanced features such as issuing loans at fair market value, automatic dividend payments and delivery of option contracts.

Bagels Finance combines a leveraged yield farming protocol, lending protocol, cross-chain interoperability, and an oracle in one for HECO, BSC, ETH ecosystems.

First of all, Bagels allows users to leverage the positions used in liquidity mining between 2–10 times the value of their original positions. Bagels has included a variety of mainstream liquidity mining pools so that users only need to stake a single asset and achieve single-asset or dual-asset mining. For example, users can stake ETH to mine Sushi. For 1:1 dual-asset mining, it is usually riskier because the price of one asset will fluctuate and under extreme cases, it may result in impermanent loss, and thus it can only leverage up to 3 times the value of assets staked. For single-asset mining for common stablecoins such as USDT or DAI, Bagels can allow up to 10 times leverage for users to maximize APY.

Meanwhile, Bagels will launch cross-chain aggregation protocol “Dokodoa” in V2. Dokodoa is a Japanese term meaning “Anywhere door”, Dokodoa itself is a fully open-source network that passes data of various digital assets across public blockchains through the Dokodoa cross-chain aggregation protocol.

Dokodoa is a cross-chain mapping protocol based on an oracle that monitors the state of data on different public chains. Like Polkadot, Dokodoa will allow asset mapping across heterogeneous blockchains, creating a heterogenous multi-chain environment. Dokodoa also allows isomorphic cross-chain, this provides additional liquidity farming strategies for vaults thus creates sources for yield farming.

Bagels and Dokodoa are complementary. Bagels’ leveraged liquidity farming platform, together with Dokodoa solves the asset liquidity cross-chain problem, which provides better liquidity and more farming options for multi-assets on the Bagels platform. For instance, in addition to providing mining options on BSC or HECO, Bagels can also add options on Ethereum to the Bagels platform for BSC or HECO, allowing holders of BSC or HECO to farm on Ether with low gas fee.

The complete Bagels network is positioned as a cross-chain asset aggregation yield farming platform designed to provide higher APY for farmers in the DeFi ecosystem. Bagels will revolutionize DeFi and provide incredible value to the cryptocurrency landscape.