Beta Finance
Search…
Overview
Beta Finance is a protocol that enables DeFi users to have access to a scalable and accessible money market where tokens can be listed permissionlessly and automatically, as well as to an effective, easy-to-use short selling tool. We encourage users to interact with our protocol and leverage new DeFi strategies that are now possible with an accessible on-chain short selling solution and permissionless listing. Beta Finance will initially be live on Ethereum Mainnet with plans to scale to additional layer-1 and layer-2 solutions afterwards.
To interact with the Beta Finance protocol you will need a MetaMask, Coinbase, WalletConnect, or Fortmatic wallet that is connected to Ethereum Mainnet. Please search for these wallets to understand how to install and use them.
To enable the support of more volatile assets, Beta Finance has an isolated collateral model, meaning there is no cross-collateralization. For example, given 10 ETH used as collateral, with 5 ETH allocated to borrowing $ALPHA, and 5 ETH allocated to short selling $SHIBA. If $SHIBA spikes in price, and you're at risk of liquidation, only the 5 ETH allocated to your $SHIBA position is at risk of liquidation. The other 5 ETH associated with your ALPHA position is safe and will not be liquidated. You can reference our Risk Framework section for more information.
Initially, Beta Finance will be supporting ETH, USDC, USDT, and DAI as valid collateral, with the availability for our community to propose and vote for additional collateral support once Phase 2 is launched.

Short Selling

We encourage users to spend time understanding how short selling works before starting to use this feature on Beta Finance. In general, short selling on Beta Finance is similar to short selling on centralized exchanges with the main caveats:
  • Beta Finance does not use an order book to execute the short sell, instead we route the trade through decentralized exchanges that use AMM technology.
  • Beta Finance does not use funding rates, borrow and short positions repay the accrued interest in a similar fashion to existing money markets like Compound and Aave.
Trading can result in financial loss limited up to the amount of your initial investment. Remember to do your own research to understand tokens, market conditions, and other technologies you will be using.

Permissionless Money Markets

This feature will be enabled in Phase 2 of our launch. Initially users will be able to interact with Beta Verified Markets, which are money markets that the team has analyzed and evaluated to be safer for users to interact with.
Last modified 1mo ago