Beta Finance is a decentralized unlicensed lending platform incubated by Alpha Finance. Its characteristics are that users can spontaneously establish monetary asset pools, focus on the long-tail asset market, and focus on meeting the scenarios of asset shorting.

Offset today's DeFi volatility by developing critical infrastructure and user tools to improve market efficiency. Adhere to the DeFi spirit of "open finance for all" and redefine finance by providing a building block in DeFi.

Shorting is a counterweight to price movements and a key part of the financial infrastructure missing from DeFi. Rather than allowing volatility to persist as the norm and relying on clearing cascades for price corrections, DeFi users are empowered to be a counterforce to price volatility by providing a simple and seamless experience for short assets. In addition, over 99% of currently actively traded crypto assets are ignored by popular money market protocols, leaving these token holders with few or no options to earn additional token gains. As DeFi becomes larger and larger, a money market protocol can be expanded accordingly, allowing users to create money markets instantly.

In general, short selling on Beta Finance is similar to short selling on a centralized exchange, but with one major difference: Beta Finance does not use an order book to perform short selling, but trades through a decentralized exchange using AMM technology. Beta Finance does not use funding rates and borrows and takes short positions to repay accrued interest ina manner similar to existing money markets such as Compound and Aave.

To support more volatile assets, Beta Finance has a segregated mortgage model, meaning there is no cross-mortgage. For example, suppose there are 10 ETH as collateral, of which 5 ETH are allocated to borrow $ALPHA and 5 ETH are allocated to short $SHIBA. If the $SHIBA price spikes and is at risk of being liquidated, only the 5 ETH allocated to the $SHIBA position is at risk of being liquidated. The other five ETH linked to ALPHA's position are safe and will not be liquidated.

1. Collateral incentive: BETA token holders will be able to pledge their tokens on the agreement as a backstop to cover the shortfall event. BETA holders who hold tokens will receive a portion of the revenue generated by the agreement. 2. Liquidity mining: Liquidity providers can pledge their assets to pools of loans for borrowing and short selling. To incentivize these providers at opportunity cost, liquidity providers will be eligible to receive BETA tokens through the Liquidity mining program, adjusted according to the relative contributions and additional parameters of users. 3. Governance: BETA token holders will be able to participate in the platform's governance process and vote. Through governance, users can influence and modify Beta Finance's product features and key parameters. This will enable BETA token holders to influence the direction of the agreement.

Compared with the current mainstream lending platform, Beta Finance has the following characteristics: 1. Unlicensed money Market Like Euler, Beta Finance has also looked to the long-tail lending market outside the mainstream as its main target market. Users will be free to create asset classes to lend their crypto holdings that aren't currently available in Beta Finance, although the feature isn't available yet. Beta Finance lets users borrow money to short an asset in one click.

According to binance's official announcement, Beta Finance (Beta) tokens will have the following breakdown: Total token supply: 1,000,000,000 Beta Launchpad hard cap of $3,000,000 Public offering token price: 1 BETA = $0.06 (BNB price will be determined prior to subscription) Hard cap per user: $20,000 (333,333.33 BETA) Total number of tokens allocated to Binance Launchpad: 50,000,000 BETA (5% of the total token supply)

Collateral incentive: BETA token holders will be able to pledge their tokens on the agreement as a backstop to cover the shortfall event. BETA holders who hold tokens will receive a portion of the revenue generated by the agreement.

Smart contract vulnerabilities, asset liquidity risks, etc.

Beta Finance has accurate product positioning and business scenarios, focusing on lending and shorting services for long-tail assets, which forms a sharp difference from existing large lending platforms. Its product concept is simple, long tail asset + one key short function combination also has a large market growth space. In addition, Beta Finance has a very good investor background. Although the project has not yet officially started token distribution, nor has the token model been published, it deserves long-term attention.

Although the product was launched for a short time, the TVL of the project increased rapidly. On the one hand, Alpha endorsed the project; on the other hand, the official also publicly stated that the air drop would be carried out for users of deposit, loan and short selling, which also brought a lot of funds to the project. However, the capital utilization rate of Beta Finance is low at present.