Bento Savings Rate

Bento Savings Rate: Best Risk-Adjusted Yields

Bento Savings Rate refers to the yield generated by the protocol on the stablecoins reserve backing the Bento Dollar and distributed to beUSD+ holders. BSR is like the reference rate of digital dollar yields in DeFi, providing passive exposure to aggregated and optimized yields from a range of blue-chip stablecoins, platforms, and strategies across DeFi, CeFi, and TradFi ecosystems. BSR offers simple and secure access to the best risk-adjusted yields on digital dollars to both DeFi-native users and TradFi newcomers.

Bento Reserve: Novel All-Weather Reserve Design

The Bento Reserve consists of multiple blue-chip stablecoins with diverse stability mechanisms, generating yield across top-rated DeFi protocols through various low-risk strategies, including lending, carry trade, re-staking, private credit etc.

In the Bento Protocol, each collateral asset is assigned a weight that reflects its proportion within the reserve backing the Bento Dollar. Collateral assets are then further utlised for generating yield on multiple DeFi protocols offering diverse yield strategies. These weights are dynamically adjusted to keep the reserves diversified and balanced, ensuring an optimal risk-adjusted yield for users. During the initial launch phase, rebalancing will be managed by an automated, rule-based strategy, with the potential to incorporate specialized AI agents for more advanced yield optimization. Over time, Bento will adopt a modular approach, allowing whitelisted institutional managers to participate in reserve allocation and implement tailored yield optimization strategies.

Bento prioritizes safety and stability, adopting top-tier security practices and selecting high-quality collateral assets and DeFi platforms. New collateral assets and strategies are introduced over time to maximize returns while minimizing risks and dependencies, all in accordance with DAO governance rules and the established risk framework. Apart from the risk assessment for the selection criteria, additional measures are in place including minimum and maximum weight to each collateral asset and maximum exposure to any DeFi protocol. The DAO appointed risk managers monitor the risk factors on an ongoing basis and provide their analysis to the DAO in order to make well-informed decisions related to managing the underlying collateral and protocol.

Bento’s novel all-weather collateral reserve design and dynamic allocation deliver superior risk-adjusted yields compared to other major stablecoin yield products in both bull and bear markets.