What is Burnt Finance? Information about Burnt Finance and the BURNT . token

• Overview of Burnt Finance
• What is Burnt Finance?
• Outstanding features of Burnt Finance
• Burnt Finance's main auction methods
• Main features of Burnt Finance
• The development team, investor of the Burnt Finance project
• Burnt Finance's development roadmap
• Overview of the BURNT . token
• What is the BURNT token?
• Where can BURNT tokens be bought and sold?
• The future of Burnt Finance and should I invest in the BURNT token?
• summary

Overview of Burnt Finance

What is Burnt Finance?

Burnt Finance is the first decentralized NFT auction protocol built on the Solana platform . Besides, the project allows anyone to create and trade synthetic assets (Synthetic Assets), digital assets (such as NFT). 

Burnt Finance's goal is to provide access to unlimited auctions for any type of digital asset. To achieve that goal, the project has selected potential auctions to deploy on Burnt Finance.

Besides, Burnt Finance also provides an intuitive, user-friendly interface, to facilitate all auctions to take place smoothly in a completely decentralized environment. 

Outstanding features of Burnt Finance

Activities in the current auction environment

First, the current auction ecosystem consists of centralized or semi-centralized platforms. Each platform has its own technical limitations and barriers to entry. Most of these platforms operate on the Ethereum blockchain , so transaction processing speeds are slow and users have to pay high gas fees.

Besides, existing platforms that allow minting and selling NFTs also have their own disadvantages. In addition to gas fees, users have to pay many other costs such as account opening fees, NFT listing fees, etc. In addition, these platforms do not have an anonymous mode, users must disclose personal information. This leads to many risks related to user privacy.

The solution Burnt Finance brings

Burnt Finance was created to solve the above problems including high gas fees and centralization of current auction platforms. The project provides a fully decentralized and diversified auction platform for digital assets. At the same time, it takes advantage of the outstanding features of Solana platform in terms of processing speed, security, and low gas fees. This allows anyone to easily participate in all forms of financial investment on Burnt Finance.

Burnt Finance's main auction methods

English Auction

The English auction is the most popular form of auction at the moment. In which, the latter will offer to buy at a higher price than the former by publicly shouting prices. The English auction process will typically proceed as described below.

First, the auction begins with the seller setting a reserve price and a reserve price. The starting price is revealed at auction creation, but sellers can still accept a certain bid by submitting an online transaction before the reserve price is met.

Next, buyers will bid on that item in turn until no one else bids higher. Whoever makes the highest bid will have the right to buy the item.

Then, if someone makes a new bid in the last 10 minutes of the auction, the auction time will be added by 10 minutes.

When the auction ends, the item will be given to the winner. The seller will receive the purchase amount after deducting related costs. However, if the reserve is not reached at the end of the auction period. At the same time that the seller does not accept any bid prices, the parties involved will receive their auction amount back.

By facilitating British auctions, Burnt Finance provides users with access to a well-known and popular form of auction. This type of auction, allows investors to place symbolic bids and not pay if the auction has not yet found a winner. 

At the same time, it also allows buyers to compete fairly and transparently before the community, instead of just a discussion between buyers and sellers. 

Dutch Auction

Dutch auctions operate on a descending auction mechanism. The final sale price will be calculated based on all bid prices of a given property. This type of auction is suitable for the sale of a large amount of property.

In a Dutch auction, the ceiling price of a property is set by the seller. The price continues to fall after a pre-determined period of time. However, potential buyers can still bid and purchase the property at those prices. The Dutch Auction ends when all the NFTs are sold out or the auction ends.

Example: An innovator could start a Dutch-style NFT auction at $100 and set the price down by $5 per hour. This means that the first buyer can buy the NFT for US$100, another buyer can buy the same NFT for US$90 in just two hours.

Dutch auctions are important to the decentralized auction protocol because they provide a fairer and more democratic method of determining the price of an asset. The descending bidding mechanism allows retail investors to easily participate in investing in high-value assets. 

Lottery-style auctions

The first step of a lottery-style auction based on BURNT tokens will be as follows:

• The user will first enter the lottery process with random numbers generated by hashing algorithms and have 2 sets of numbers.
• The first set of numbers (set A) will be distributed and issued to a group of users interested in participating in the lottery.
• Then a random number will be drawn from set B and the user will keep a number from set A. The winner will be found when the 2 numbers match.

Traditional lotteries face a number of limitations, especially the fairness of the game. This will be addressed by Burnt Finance's infrastructure. Burnt Finance's lottery mechanism is very clear and transparent throughout the lottery process. Data on participants, winners, and draw history are publicly recorded and verifiable on-chain.

In addition, the draws are automated through smart contracts, which reduces the possibility of errors in the operation. Furthermore, the lottery auctions on Burnt Finance are open to users worldwide and anyone can participate. 

Bonding curve mechanism

A bonding curve is a form of auction that determines the value of an item based on a bancor formula to illustrate the relationship between the price and supply of the asset.

This form of auction is used when the number of items is limited, whereby each time the supply of that item decreases, its price increases. This mechanism allows those who buy items as soon as possible to receive attractive incentives. 

This form is very important for the auction ecosystem as this incentive mechanism will likely be used a lot in DAOs, prediction markets and fundraising… 

Main features of Burnt Finance

Aggregate Assets and NFT

Burnt Finance provides an intuitive interface that allows users to easily mint synthetic assets, NFTs and even new digital assets. 

Burnt Assets (bAssets): This is a diverse range of synthetic assets that can be created on Burnt Finance. bAssets can be synthetic versions of real-world stocks, commodities, indices… With Solana's advantage, minting bAssets is guaranteed to happen smoothly and completely. 

bAssets Collateral: Both USDC and BURNT tokens can be used as collateral to mine bAssets. USDC and BURNT collateral ratios are 150% and 300%, respectively. If the value of an asset rises above the mortgage threshold, the collateral is liquidated to maintain solvency. Otherwise, the bAssets must be burned to redeem the original collateral.

Generating Non-Fungible Tokens (NFT)

The Burnt Finance platform offers the ability to create a wide range of new NFTs, including:

New Mint NFT: Users can easily mint new NFT in the form of images, videos… on Burnt Finance. At the interface of this platform, users simply select the name of the NFT and specify specific properties. Finally, the user can set the desired royalty cost to receive in the future.

Burnt Finance Marketplace: Both creators and buyers are offered a marketplace for trading NFTs and synthetic assets with near-zero gas fees. 

Create new digital assets

Additionally, users can mint new digital assets on the Solana blockchain through the Burnt Finance interface. With the existence of Wormhole (which bridges Solana to Ethereum), anyone can easily transfer assets on Ethereum to Solana. Users can also raise funds for new projects through various auctions.

The development team, investor of the Burnt Finance project

Development team

Burnt Finance did not provide the detailed identities of the development team. The leader goes by the pseudonym Burnt Banksy – the artist whose NFT artwork is sold on Rarible and OpenSea. 

The development team wanted to demonstrate that the values ​​of digital artwork (NFT) are not inferior to physical works.

Investors

Burnt Finance has raised US$8 million in a funding round led by Animoca Brands. Other investors in this round include Alameda Research , Multicoin Capital , Valor Capital, Figment, Spartan Capital, HashKey, Terra, Fantom… The funds will be used to add more employees and expand partnerships with artists and other Solana-based projects.

In May 2021, the project also raised US$3 million from Injective Protocol, Multicoin Capital, Mechanism Capital and Alameda Research.

Burnt Finance's development roadmap

Currently, the project has not announced the development roadmap, the TraderH4 team will update immediately after the announcement from Burnt Finance.

Overview of the BURNT . token

What is the BURNT token?

BURNT is the governance token of Burnt Finanace, investors need to know some information as follows:

• Ticker: BURNT
• Blockchain Network: SPL (Solana)
• Total Supply: Updating
• Circulating Supply: Updating

Some functions of the BURNT token:

• Protocol Governance: To promote decentralized community governance for the network, Burnt Finance will allow BURNT token holders to administer, propose, and vote on proposals to help the project grow.
• Collateral for Synthetic Assets: BURNT can be used as collateral to mine bAssets on the Burnt Finance platform. This secondary synthetic asset will be transferable and tradable. 
• Fee reduction: Users who buy NFT on the platform using BURNT get a reduction in transaction fees from (1% to 0.1%). 
• Incentivize Participation: Users who experience their actual features and contributions on the Burnt Finance platform will have the opportunity to receive BURNT tokens.
• In addition, BURNT is also used in Proof-of-Stake (PoS) security.

Where can BURNT tokens be bought and sold?

Currently the BURNT token has not been released, TraderH4 team will update after official information from the community.

The future of Burnt Finance and should I invest in the BURNT token?

Burnt Finance is approaching the final stage of its Solana-based decentralized infrastructure that allows users to mint and auction NFT assets using the methods mentioned above. To create a collection, Burnt Finance users only need to enforce two signatures on the chain. 

With this mechanism, Burnt Finance ensures that the NFTs in the collection are all verified prior to auction. This also helps protect the interests of buyers and sellers. In addition, it will also be beneficial in case the NFT is transferred to other chains when the original signature still exists on the Solana chain. 

In addition, Burnt Finance is built on Solana and takes advantage of the outstanding advantages of this blockchain. The project also has another plus point when it receives the attention of many large investment funds. However, the identity of the team has not been specifically revealed, which is considered a minus point for this project.

Some official information channels of the project that investors can follow are:

Website | Twitter | Telegram | Discord

summary

Above is all information about the Burnt Finance project and the BURNT token. With great advantages such as decentralization, fast transaction processing speed and low cost, Burnt Finance brings a multi-modal auction platform to users in the DeFi world. Hopefully, through the above article, readers will have an overview and make assessments about the potential of this project.

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