YFI as collateral for Bidao BAI stablecoin

The Bidao ICO(https://www.bidaochain.com) recently ended after running around 1yr. It is a chain agnostic stable coin platform using multiple coin/tokens as collateral(along with BNB) to produce BAI. You can think of Bidao essentially as MKR with validators. There are 3 tokens in its ecosystem

BID = MKR (this is what the ICO was for)
BAI = DAI (collateral based stablecoin)
BNB(+ other collateral) = ETH

I spoke with Xiaolong Zhang, the COO for the project and he is very interested in having YFI be used as collateral in their ecosystem. How would we proceed with that sort of partnership?

Announced Collateral Partnerships:

  • Tron
  • LINK
  • Ontology
  • Tellor
  • QTUM
  • HUSD
  • IOST
  • Travala

Personal Thoughts:
Binance Chain recently launched their Smart Contract platform and it is EVM compatible. Binance has essentially missed the DeFi boat of sorts and have strong tied to Bidao since Bidao intends to build on top of Binance Chain. We’ve discussed cross chain operations before and I think a partnership where YFI can be used as collateral is a fantastic and simpler use case.

Please share your thoughts and possible next steps.

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What sort of partnership are you looking for?

If Bidao wants to use YFI, they are very much welcome to do so and that would be highly appreciated. I don’t think there’s anything that needs to be done here from Yearn’s part though.


Now that we have a Communications role I’d expect some sort of announcement would be appropriate. From what I’ve been able to look at with Bidao, they’ve announced in tandem with communication from at least the socials of those other projects. Would you agree?

This is a bad idea for multiple reasons. We should not be announcing partnerships that could provide credibility to projects building on competing L1s. Our most successful product is the yETH vault. One of the main drivers for people to user our products is to minimize the high gas fees. For YFI to be successful we need to stay laser focused on connecting with projects building on Ethereum. As the DEFI ecosystem on ETH grows so do the gas costs, which drives more value to our vaults.


Going to disagree there. You’re making the same argument BTC maxis make as to why BTC should not scale, the problem of gas fees.

Also YFI is being built to be change agnostic. One of the YFI devs was already playing around with the Fantom(FTM) bridge. Don’t believe me? Search Twitter for clear evidence. There’s more to what YFI does other than aggregation to save on gas fees. With L2s coming, bridges to DOT/ATOM existing, that mindset is short term at best.

I am for integrating YFI with other chains and think it could only add value. Not for duplicating the system mind you but integrating it into the current system we have on eth now, ie make all chains accrue value to YFI.


I agree that the Ethereum Community is most important. There is, however, a long way to go until ETH 2.0 and there may become another L1 that is broadly acceptable to the ETH Community to help reduce fees in the interim.

This is extremely important and needs to be understood. I personally happen to somewhat like aspects of the Bidao project, but they have a lot more to game from our legitimacy than we do from a partnership with them. In terms of having YFI as collateral on their platform, that seems like it’s pretty much up to them. No different than a YAM farm in my book. But official partnerships need to be reserved for things that we are integrated with, like Curve.

You’d think by now we’d realize that heavy reliance on one thing is risky. Curve or Ethereum for example. Curve has its issues. Ethereum has its issues. Both are great now. You’re thinking zero sum. There is no harm in YFI communications announcing it is collateral for Bidao. That is Bidao’s work to do. I am not proposing we do anything more than issue a communication. Where is the downside to that?

Bidao announced today the initial BID tokens will be ERC20. They will then create a BEP-2(Binance Chain standard) <-> ERC20 bridge along with other bridges for other base chains.

From Bidao official announcement:
Please claim your BID Tokens to receive them in your wallet. We decided to make BID an ERC20 Token for now, because we made so many great partnerships with many projects within the Ethereum ecosystem, like Chainlink and Tellor and we want to bridge the Ethereum Defi ecosystem with the Bidao ecosystem as fast as possible :facepunch: We are currently building a Tokenbridge to move ERC20 Tokens between the native Bidaochain and the Ethereum network. Ethereum is the king of Defi for now and it is essential to integrate with the Ethereum Defi community so that the Bidao community can profit maximally from the Defi hype :chart_with_upwards_trend: By going this route it is simple to integrate BID with popular lending platforms and yield farming platforms. We don’t want to be an Eth-killer or MakerDAO-killer as many other projects tried and failed, instead we want to be the great integrator that enables us to reach all the communities in the cryptocurrency space so we can reach the most users possible. The key to solve this is to connect the native Bidaochain with all the other blockchains. And this is done by building so called Tokenbridges :bulb: A Tokenbridge allows the transfer of Tokens between different Blockchains. We expect this to be the next paradigm in the cryptospace (see Polkadot and Cosmos). So there will be a Bidaochain <-> Ethereum bridge, Bidaochain <-> Binancechain bridge, Bidaochain <-> Polkadot bridge and much more.