Yield Opportunities with Segment Finance: What You Need to Know
$BNB Yield, $THE Rewards, & More
While $SOL continues, to pump, $BNB has held its own, taking the #4 ranked coin/token my market cap position from the incumbent Solana multiple times. While Binance the company underwent some changes in the C-suite amidst the start of the current crypto bullrun, the BNB chain is alive and well, with TVL increasing from ~$6B to $9B+ this year so far…
Today we’re bringing to you Segment Finance, a BNB chain-based liquidity market. The protocol itself has gained 20% in TVL this past week. Users can find significant incentives for depositing BNB, BTC, ETH, and stablecoins. With stablecoin rates elevated across the board, supplying stables may also be a good move for conservative users.
Stay alert in the markets ⬇️
Background on Segment Finance
The main attractive feature of Segment Finance currently is its supply APRs for bluechip assets including $BTCB, $ETH, $BNB, $USDC, and $USDT. Rewards are currently highly elevated, due to the protocol’s SEF ongoing SEF incentives.
Supplying assets functions similarly to how it would on a platform like Aave; users deposit assets and receive a Segment ‘se’ wrapper e.g. deposit ETH for seETH at the appropriate ratio. This rate of the se/base asset may increase This seETH must be returned to regain collateral. The tokens also must be actively held to maintain a wallet’s borrowing limit.
In addition to the core pools, isolated lending and borrowing pools are also on the way. Currently, borrowing BTCB may be attractive as the protocol is actually paying borrowers a ~1.43% APR. Borrow rates across the platform are relatively attractive compared to some other protocols All assets on the platform have an 80% LTV ratio. Beyond supply and borrow rates, which will fluctuate, Segment Finance offers several key features to their users:
Decentralized and Trustless: As an onchain lending platform, Segment provides transparency, immutability, and security of all transactions and user data.
Borrowing and Lending: Segment Finance allows users to borrow and lend a wide range of cryptocurrencies and tokens.
Collateralized Loans: As is the case with most protocols, collateralized loans reduce the risk for lenders and allows borrowers to access funds without a credit check or extensive documentation.
Isolated Pools: Isolated Pools are designed to overcome the limitations of a single core pool. Each Isolated Pool is an independent collection of assets with custom risk management configurations. This setup allows users to better manage their risk and earn yield, while also preventing failures in one market from impacting others. Note that Isolated pools are yet to go live.
Smart Contracts: Self-executing contracts act as agreements between borrowers and lenders, enforcing the terms and conditions of the loan.
Interest Rates and Terms: A flexible interest rate mechanism is employed, determined by the supply and demand dynamics of the platform.
Liquidation Mechanism: In the event of default or under-collateralization, Segment Finance employs an automated liquidation mechanism. If the value of the collateral falls below a certain threshold, the protocol can liquidate the collateral and repay the lender accordingly.
Integration and Interoperability: Segment Finance aims to integrate with other DEXs and lending protocols, creating an interconnected ecosystem that enhances liquidity and expands the range of available assets for borrowing and lending.
Tokenomics & Staking
When it comes to tokenomics, Segment uses the Sonne Finance model. This means that users have a couple of choices for staking the native SEF token:
sSEF: sSEF stakers receive yield in the form of additional SEF rewards, which come from the protocol using rewards to buy SEF on the market and then distribute the tokens to stakers.
uSEF: uSEF provides users with yield in the form of stablecoins (USDT) as well as THE rewards (more on this below).
Note that unstaking is subject to a 1-week waiting period.
Thena Integration
Thena has been an outperformer in this current market when it comes to both the protocol’s native $THE token performance, as well as project metrics. Thena is a liquidity hub based on BNB chain, with another instance on opBNB, Binance’s optimistic rollup.
Segment is actually an active participator in the Thena protocol, contributing weekly bribes. Earned THE rewards will also be distributed to sSEF stakers.
In February, Segment was actually the #3 ranked briber, contributing 213K SEF in bribes for Thena’s USDT / SEF pool, creating quite the incentive for voters.
Future Plans
Like Sonne Finance, one of the roadmap items for Segment is to deploy on opBNB. Other chains will also be considered to help further Segment’s multichain and interoperability efforts. Community governance will also be implemented, as well as cross-chain interoperability for the lending platform.
Segment has also displayed proactive thinking on the security front, recently increasing the maximum Immunefi bug bounty program to $100k.
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