Bao Finance V2Price

(BAO)

The migration was initiated to align the token supply with the veBAO governance model, reducing the total supply by a factor of 1,000. Users swap BAO V1 for V2 at a 1,000:1 ratio. The process requires using the official migration tool to burn V1 tokens on Ethereum or Gnosis Chain. While the migration tool remains open indefinitely via smart contracts, only V2 tokens are eligible for governance participation and protocol rewards.

veBAO (voting escrowed BAO) is the governance version of the BAO token. It is obtained by locking BAO V2 tokens for a duration ranging from one week up to four years. Generally, longer lock periods grant the user more voting power. Benefits for veBAO holders include a share of protocol revenue distributed in baoUSD, the ability to vote on reward emissions for liquidity pools, and a yield boost of up to 2.5x on rewards earned within the ecosystem.

Bao Finance V2 focuses on decentralized, over-collateralized synthetic assets. Key products include baoUSD, a stablecoin pegged to the US Dollar; bETH, a synthetic Ethereum asset composed of a basket of liquid staking derivatives; and baoBTC, a Bitcoin-pegged token backed by ETH collateral. The protocol categorizes these into 'Soft Synths,' which track asset baskets or indices, and 'Hard Synths,' which are pegged to specific price feeds for individual assets.

Users can earn yield by providing liquidity to supported 80/20 pools or by depositing assets into Stability Pools. Stability Pool participants act as a backstop for the protocol; they earn rewards by absorbing debt from under-collateralized positions, receiving the liquidated collateral at a discount alongside token emissions. Yield rates are variable and can be monitored via the official protocol dashboard or reputable market analytics platforms.

Security is maintained through audits by specialized firms and collaborations with security partners. Users should exercise caution regarding unofficial 'airdrops' on external networks, as these are often phishing attempts. Always interact with the official dApp and verify the V2 contract address: 0xce391315b414d4c7555956120461d21808a69f3a. All news and updates should be confirmed exclusively through the project's official social media and community messaging channels.

The Stability Pool is a core security feature designed to maintain the solvency of synthetic assets. When a borrower’s collateral ratio falls below the required threshold, the pool automatically absorbs the debt. In exchange for providing this liquidity, depositors receive the liquidated collateral (such as ETH) at a discounted price. This mechanism ensures that synthetic assets like baoUSD remain fully backed and stable even during market volatility.