Burrow is Live on Mainnet! Read this FAQ to Get Started
The wait is over! The first money market on NEAR native is finally live on mainnet. This means more liquidity and DeFi composability on NEAR like you’ve never seen before.
Before you run off to burrow.cash and start looping like crazy, here are some questions and guidelines to get you started.
Get to Know Burrow
Q. What is Burrow?
A. Burrow is a decentralized, non-custodial, autonomous money market similar in nature to Aave and Compound. Burrow enables users to earn interest on their crypto assets and offers borrowers transparent and efficient financing completed entirely on-chain. It also aims to unlock the next layer of liquidity for interest-bearing assets, particularly Layer 1 staking derivatives, such as stNEAR and stETH.
Burrow runs natively on the NEAR Protocol and is written in Rust. The protocol is completely open source.
Burrow Goes BRRR
The advent of decentralized finance (DeFi) will fundamentally alter the world of financial products and services…
Q. How do I get started?
A. Go to burrow.cash and launch the app. Connect with your NEAR wallet (support for more wallets will be added soon).
- Supply: deposit assets and earn interest
- Borrow: use your deposited assets as collateral to borrow more assets
- Stake (coming soon): stake your BRRR tokens and receive xBRRR tokens to enable voting rights and boosted rewards
Q. Which assets can I supply and borrow on Burrow?
A. Currently, NEAR, stNEAR, ETH, USDC, USDT, DAI, and wBTC.
In the near future, other assets such as stETH, stSOL, and further stablecoins will be added.
How Does Burrow Work?
Q. How much does it cost to use Burrow?
A. Burrow runs natively on NEAR Protocol, and therefore it only costs a few cents to cover the transaction costs. Additionally, the network will require a small storage cost of 0.15 NEAR (same as any other dapp on NEAR).
Q. Does Burrow charge a fee?
A. 25% of interest paid by borrowers will go to Burrow’s reserve fund.
Q. How are interest rates set on Burrow?
A. The rates dynamically adjust to the supply and demand of each asset.
Q. How often is the interest rate charged?
A. Interest is computed and added per block.
Q. What is BRRR?
A. BRRR is the native governance token of Burrow. BRRR is distributed to users as rewards for supplying assets. Later, once xBRRR staking goes live, users will be able to vote with their BRRR tokens and benefit from boosted rewards.
Q. Does Burrow have a staking feature? What is xBRRR?
A. Yes. In the coming months, Burrow will release an xBRRR staking program. This means that you can stake your BRRR tokens on Burrow to receive xBRRR. xBRRR holders can benefit from boosted rewards APR and will be able to participate in protocol governance through token-weighted voting.
Q. What is Burrow’s tokenomics like?
A. Check out Burrow’s tokenomics article.
A High-level Overview of $BRRR Tokenomics
As Marc Andreesen of a16z famously proclaimed, “It’s time to build.” We say, “It’s time to Burrow.” In this spirit, we…
Q. Will there be an IDO for BRRR?
A. No, there will not be a separate token sale for BRRR. BRRR will be pre-mined on Burrow for a month, during which your BRRR tokens will not be transferable. After a DAO vote passes on this subject, BRRR rewards will become transferable and tradeable in the market.
Burrow on NEAR
Q. What is wNEAR? Is it different from NEAR?
A. Yes. wNEAR means “wrapped NEAR.” TL;DR, 1 NEAR = 1wNEAR, but due to different token standards you cannot use NEAR on Burrow, but only wNEAR. To wrap and unwrap NEAR, please go to app.ref.finance.
Q. What is the difference between NEAR and stNEAR?
A. stNEAR means “staked NEAR”. It is a token that represents the NEAR that you have staked in the protocol through Metapool. Metapool issues 1 stNEAR for 1 NEAR you stake, meaning that stNEAR is an asset that increases in value over time because it accrues the staking rewards (11% APY). You can learn more about stNEAR on Metapool’s website.
Q. Are the Ethereum assets listed on Burrow the same tokens as on Ethereum?
A. They are the same in value but are ultimately different tokens. The Ethereum assets on Burrow (USDT, USDC, DAI, ETH, wBTC) are NEP-141 tokens on NEAR representing equal value on Ethereum. These are assets bridged from Ethereum to NEAR via the Rainbow Bridge.
Q. Has Burrow been audited?
A. Yes. Burrow has successfully undergone two audits from Blocksec without any critical bugs discovered. A detailed report on Burrow’s audit will be published soon.
Q. Which oracle does Burrow use?
A. At launch, Burrow will use a MakerDAO-inspired whitelisted oracle. The oracle currently has five independent operators and may be easily extended into a decentralized self-sustainable network. In the future, the DAO will consider adding other robust oracle solutions supported on NEAR, such as Flux.
Q. What if I already provided liquidity in Burrow beta? Will it be moved to Burrow mainnet?
A. No, you will have to transfer it manually.
Q. I started providing liquidity but I do not see any rewards or APR. When will BRRR rewards for supplying assets go live?
A. On Thursday (March 31st).
Q. Where can I read more about Burrow? Can I see the code?
A. Yes! All links to our Medium, Gitbook, and Github can be found here.
Q. Who controls the Burrow protocol?
A. Burrow is managed by the Burrow DAO, a group of 14 early community contributors. In the future, with xBRRR staking, xBRRR holders will be able to participate in protocol governance through token-weighted voting.
Q. Can I get involved with Burrow governance?
A. The Burrow DAO is open to new committed and active community members. The best way is to engage in the community on the Burrow Discord and start making contributions. Alternatively, in the near future, you will be able to stake your BRRR and receive xBRRR tokens, with which you can vote on governance proposals.