# Table of Contents - [What is BetterBank? | BetterBank](#what-is-betterbank-betterbank) - [Disclaimer | BetterBank](#disclaimer-betterbank) - [Tokens of Better Bank | BetterBank](#tokens-of-better-bank-betterbank) - [Favor Tokens | BetterBank](#favor-tokens-betterbank) - [Chain Specific Token Info | BetterBank](#chain-specific-token-info-betterbank) - [Why Better Bank | BetterBank](#why-better-bank-betterbank) - [Arbitrum | BetterBank](#arbitrum-betterbank) - [Esteem | BetterBank](#esteem-betterbank) - [Favor Tokens | BetterBank](#favor-tokens-betterbank) - [Pulse | BetterBank](#pulse-betterbank) - [Esteem | BetterBank](#esteem-betterbank) - [Favor Tokens | BetterBank](#favor-tokens-betterbank) - [Esteem | BetterBank](#esteem-betterbank) - [Treasury | BetterBank](#treasury-betterbank) - [The Stronghold | BetterBank](#the-stronghold-betterbank) - [Stronghold and Wildlands TLDR | BetterBank](#stronghold-and-wildlands-tldr-betterbank) - [The Wildlands | BetterBank](#the-wildlands-betterbank) - [Revenue | BetterBank](#revenue-betterbank) - [Fund Usage | BetterBank](#fund-usage-betterbank) - [Arbitrum (Coming Soon) | BetterBank](#arbitrum-coming-soon-betterbank) - [Treasury Security | BetterBank](#treasury-security-betterbank) - [Human Security | BetterBank](#human-security-betterbank) - [Protocol Risks & Mitigations | BetterBank](#protocol-risks-mitigations-betterbank) - [Earn Favor | BetterBank](#earn-favor-betterbank) - [Types of Favor and Trading Favor | BetterBank](#types-of-favor-and-trading-favor-betterbank) - [Trading and Price Model | BetterBank](#trading-and-price-model-betterbank) - [How to Acquire Esteem? | BetterBank](#how-to-acquire-esteem-betterbank) - [Trading and Price Model | BetterBank](#trading-and-price-model-betterbank) - [How to Acquire Esteem? | BetterBank](#how-to-acquire-esteem-betterbank) - [Types of Favor and Trading Favor | BetterBank](#types-of-favor-and-trading-favor-betterbank) - [Earn Favor | BetterBank](#earn-favor-betterbank) - [Seigniorage Code | BetterBank](#seigniorage-code-betterbank) - [Aave v3 Code | BetterBank](#aave-v3-code-betterbank) - [Admin Access | BetterBank](#admin-access-betterbank) - [Contracts (Coming Soon) | BetterBank](#contracts-coming-soon-betterbank) - [Audit (Coming Soon) | BetterBank](#audit-coming-soon-betterbank) - [Pulse (Coming Soon) | BetterBank](#pulse-coming-soon-betterbank) - [Connect with BetterBank | BetterBank](#connect-with-betterbank-betterbank) --- # What is BetterBank? | BetterBank ### [](https://betterbanks-organization.gitbook.io/better-bank#introduction-what-is-betterbank) Introduction - What is BetterBank? BetterBank is a **revolutionary DeFi** (Decentralized Finance) **protocol** that reimagines lending, borrowing, and wealth generation. Traditional banking systems are **slow, expensive, and exclusive**—BetterBank brings financial freedom to everyone, regardless of geography, portfolio size, or financial background. Built on **transparent, immutable blockchain technology**, BetterBank eliminates intermediaries, reduces fees, and **maximizes yield** opportunities for users. BetterBank was designed to solve fundamental inefficiencies in both **TradFi** (**traditional finance)** and **existing DeFi lending protocols**. Betterbank's core philosophy is **financial sovereignty, fairness, and efficiency**, achieved through **decentralized, transparent, self-reliant, and permissionless mechanisms**. **Improvements Over Traditional Finance** * **Free Access to Financial Services** – BetterBank is built **on-chain**, making it accessible to anyone worldwide, without discrimination based on geography, wealth, or identity. * **Unified Risk and Reward** – Unlike banks that profit from customers while offering minimal returns, BetterBank **correlates risk with reward**, ensuring fair compensation for participation. * **Sovereign Safety Structure** – The protocol operates on blockchain **smart contracts**, removing reliance on human intervention or third-party financial institutions. **Innovative Solutions in DeFi Lending** * **Integrated Defense Against Bank Runs** – Unlike traditional banks that rely on fractional reserves and government bailouts, BetterBank implements an **automated liquidity protection mechanism**. The Favor credit system ensures that in the event of mass withdrawals, credit demand rises naturally, leading to automatic liquidations and capital redistribution. * **Security for Late Entrants** – Many DeFi protocols operate as **zero-sum games**, where early investors dump tokens on later entrants. BetterBank’s **seigniorage-integrated lending model** prevents pyramid structures by ensuring the Favor tokens retains **real economic utility** beyond speculation. * **Cooperative Investment Model** – The integration of **lending, borrowing, and seigniorage** ensures that all participants contribute to the stability and growth of the ecosystem, while achieving individual profits. By leveraging **blockchain technology, smart contracts, and novel token mechanics**, BetterBank establishes a **sovereign, high-yield financial system** superior to most traditional bank offerings and adds increased profitability and capital efficiency over existing DeFi lending platforms. [NextWhy Better Bank](https://betterbanks-organization.gitbook.io/better-bank/overview/why-better-bank) Last updated 2 months ago --- # Disclaimer | BetterBank #### [](https://betterbanks-organization.gitbook.io/better-bank/overview/disclaimer#betterbank-operates-exclusively-on-chain-free-from-centralized-regulation-and-governed-by-immutable) BetterBank operates **exclusively on-chain**, free from centralized regulation, and governed by **immutable smart contract rules**. Users acknowledge and accept the following: * **DeFi Risks** – The protocol is subject to **market volatility, smart contract vulnerabilities, and liquidation risks**. There are **no guarantees** of profitability or fund safety. * **No Liability** – BetterBank is **not a legal entity** and in principle assumes **no responsibility** for user losses due to hacking, exploits, or poor risk management. The caretaking **team also does not assume** any such **responsibility** in principle. * **Ownership & Governance** – Holding **Esteem ($ESTEEM)** grants partial ownership but **not operational control** over the protocol. Future decentralization plans may include **renounced contracts and on-chain governance**. * **Treasury Management** – Funds are controlled via **multisig governance** for liquidity provisioning, investments, and community incentives. * **Regulatory Compliance** – BetterBank **does not enforce KYC**, leaving users responsible for their own tax obligations. The platform remains **neutral in legal matters** and does not restrict financial transactions. * **Eligibility for Use** – BetterBank **cannot know** **who operates** a wallet. Any **user is fully responsible** for **complying with** **any legal limitations** on using BetterBank **that apply to them**, such as certain citizenship, domicile, residence, age, or whatever else. * **Financial Investigations Compliance** – Since **BetterBank** operates on networks that **provide complete transactional transparency**, Investigators of any sort may simply read the on-chain ledger. * **Security & Education** – Users must exercise caution. The platform provides **educational materials and in-app warnings** but does **not compensate for losses**. * These documents **are an excerpt** that show the most important information. **For full detail** on every tokenomics aspect, **read the whitepaper**, which is linked on BetterBank.io By using BetterBank, users fully accept these **terms, risks, and responsibilities**. 🚀 [PreviousWhy Better Bank](https://betterbanks-organization.gitbook.io/better-bank/overview/why-better-bank) [NextTokens of Better Bank](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank) Last updated 27 days ago --- # Tokens of Better Bank | BetterBank BetterBank’s ecosystem operates through two core tokens: **Esteem ($ESTEEM)** and various forms of **Favor (Pulse Favors: $DAIF, $PLSF, $PLSXF and Arbirtum starting with $USDTF and $ETHF upon launch)**. #### [](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank#esteem-usdesteem-governance-and-ownership) **Esteem ($ESTEEM) – Governance & Ownership** Esteem is the **primary governance and ownership token** of BetterBank. Holding Esteem represents **partial ownership** of the protocol, allowing users to participate in its growth while benefiting from its expansion. * **Seigniorage Rights** – **Staking Esteem in** one of the Wildlands **Groves rewards** its corresponding type of **Favor** continuously to the participant. * **Elastic Supply** – **Esteem may be minted or burned** at any time by users of BetterBank, **ensuring** a stable correlation between **supply and demand**. * **Minting & Rewards** – Users can **mint Esteem at** a gradually **increasing price**. It is also rewarded over time based on Stronghold deposits and rewarded immediately when buying Favor. * **Burn Mechanism** – **Esteem** can be **burned to mint Favor**, providing **an opt-out** that doesn’t hurt the remaining holders. * **Governance Utility** – **BetterBank is meant to** eventually **decentralize**, and if it successfully does so, **Esteem is** intended to function as the **governance token**, granting its owners voting rights. Successful **decentralization is not guaranteed**. **Pulse and Arbitrum versions of Esteem operate independently from each other and are two separate, each providing the above features to its respective chain. Pulse ESTEEM will only be applicable to the Pulse side of BetterBank and Arbitrum ESTEEM to BetterBank on Arbitrum .** #### [](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank#favor-starting-with-usddaif-usdplsf-and-usdplsxf-on-pulsechain-synthetic-credit-and-liquidity-engine) **Favor (Starting with $DAIF, $PLSF, and $PLSXF on PulseChain) – Synthetic Credit & Liquidity Engine** Favor tokens are **BetterBank’s synthetic credit asset**, designed to power the lending and borrowing ecosystem. Unlike traditional algorithmic stablecoins, Favor is backed by a **seigniorage model that integrates directly with lending pools**, ensuring deep liquidity and stability. * **Bought or Rewarded -** Favor tokens are **freely minted** over time to stakers of Esteem in the Groves, but can also be bought to **instantly increase borrowing capacity**, with **free Esteem** added in the deal. * **Capital Efficient Credit System** – Favor replaces traditional fractional reserve banking models by acting as **on-chain collateral with actual reserve value and liquidation thresholds**. * **Market-Driven Stability** – Favor’s supply expands based on real-time demand, accepting volatility in the Wildlands to stabilize yields in the Stronghold. * **Utility in Borrowing & Staking** – Favor can be used as **collateral** for borrowing **when LP'd and deposited** in lending markets. Both tokens **work** **in** **tandem** to create a **self-reinforcing economic loop**, where Favor fuels borrowing and liquidity, while Esteem governs the system’s expansion and economic balance. [PreviousDisclaimer](https://betterbanks-organization.gitbook.io/better-bank/overview/disclaimer) [NextEsteem](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/esteem) Last updated 27 days ago --- # Favor Tokens | BetterBank [PreviousEsteem](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/esteem) [NextChain Specific Token Info](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info) Last updated 27 days ago Favor is **BetterBank’s synthetic credit token**, designed to **replace the void** of assets in **traditional fractional reserve banking** with a **fully on-chain, decentralized credit system**. Unlike conventional fiat-backed systems that rely on **trust in centralized institutions**, Favor’s value is **algorithmically regulated and dynamically adjusted** based on real market conditions. **How Favor Works** * **Acts as synthetic collateral** for **borrowing** assets in the . * For purposes of calculating Favor as a collateral asset, Favor types are limited to 3.5x their paired asset, even though there is no actual price ceiling. This limit helps safeguard the lending markets against price volatility and potential exploits. * **Liquidity-Backed Stability** – Favor tokens are **paired with their respective assets** (e.g. pDAI to DAIF, and USDTF to USDT) to maintain deep liquidity and price alignment. * **Dynamic Seigniorage Model** – The supply of Favor **expands rapidly or slowly based on demand**, preventing instability and runaway inflation. * Favor tokens are soft pegged to their respective asset and do not stop emissions based on being under peg like earlier seigniorage models did. Rather, emissions just slow or increase printing based on the Favor price relative to the paired asset. **Favor’s Role in the BetterBank Ecosystem** * **The backbone of Wildlands lending**, acting as credit in the form of collateralized LP positions. * **Self-sustaining and demand-driven**, preventing **the failures of past algorithmic seigniorage tokens**. * **Supports deep, liquid DeFi markets** while ensuring long-term capital efficiency. Favor isn’t just another synthetic token—it’s **the key to unlocking capital efficiency and credit expansion in DeFi**. 🚀 [Wildlands](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/the-wildlands) --- # Chain Specific Token Info | BetterBank [Pulse](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info/pulse) [Arbitrum](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info/arbitrum) [PreviousFavor Tokens](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/favor-tokens) [NextPulse](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info/pulse) --- # Why Better Bank | BetterBank [PreviousWhat is BetterBank?](https://betterbanks-organization.gitbook.io/better-bank) [NextDisclaimer](https://betterbanks-organization.gitbook.io/better-bank/overview/disclaimer) Last updated 2 months ago #### [](https://betterbanks-organization.gitbook.io/better-bank/overview/why-better-bank#betterbanks-primary-innovation-merging-seigniorage-with-lending-and-borrowing) BetterBank's primary innovation: **Merging Seigniorage with Lending & Borrowing** BetterBank introduces a **novel financial model** that fuses **seigniorage mechanics** with **lending and borrowing**. This combination **redefines capital efficiency**, providing sustainable liquidity and yield opportunities that **TradFi and existing DeFi platforms cannot match**. **Solving the Algorithmic Peg Problem** Historically, **algorithmic stablecoins (i.e. pegged tokens)** have suffered from unsustainable economic models. Many have faced **runaway inflation, loss of peg, or outright collapse**, leaving investors as exit liquidity. BetterBank **solves this abandonment problem** by integrating its seigniorage model with a **robust lending and borrowing ecosystem**, ensuring **continuous economic activity, utility, and deep liquidity** for its synthetic assets. **How BetterBank Enhances Capital Efficiency** 1. **Seigniorage-Backed Collateral** – The protocol’s synthetic asset system (Favor Tokens) acts as **on-chain credit**, creating a **self-sustaining loop** where liquidity fuels borrowing, and borrowing sustains liquidity. 2. **Dynamic Market Adjustments** – Unlike traditional money markets, BetterBank’s system **dynamically expands or contracts supply growth** based on real demand, avoiding artificially controlled inflation. 3. **Yield Optimization Beyond TradFi's Capabilities**– TradFi lending platforms offer low returns due to **high operational costs and inefficiencies**. BetterBank's , by contrast, leverages **high yield opportunities**, providing **impressive APY's** that remain sustainable over time. **Preventing Pitfalls of Both TradFi and of Earlier DeFi Models** * **No Zero-Sum Liquidity Traps** – Unlike previous DeFi projects where **early adopters drain liquidity**, BetterBank ensures that **contributing to long-term growth is the more profitable option for any participant**, be they early or late**.** * **Resilient Against Bank Runs** – Liquidity crises often lead to Bankruptcy in TradFi and to **death spirals** in DeFi. BetterBank integrates **automated credit adjustment** and **liquidity recovery** that prevents liquidation cascades and ensures **long-term capital stability**. () * **Sustainable High Yield Generation** – Many DeFi projects produce tokens that have their sell value as their primary, and often only, value. BetterBank instead produces tokens that keep their value upon use, and this **value generation results in sustainable high yields**. BetterBank is not just another lending protocol—it is a **fundamentally new financial paradigm** that eliminates the inefficiencies of both **TradFi and previous DeFi models**. By merging seigniorage-based synthetic assets with **highly efficient lending**, BetterBank creates a **future-proof, yield-generating ecosystem** with unmatched **capital efficiency and risk mitigation**. [Stronghold](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/the-stronghold) [See Protocol Mechanics](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/stronghold-and-wildlands-tldr) --- # Arbitrum | BetterBank [Esteem](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info/arbitrum/esteem) [Favor Tokens](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info/arbitrum/favor-tokens) [PreviousEarn Favor](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info/pulse/favor-tokens/earn-favor) [NextEsteem](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info/arbitrum/esteem) --- # Esteem | BetterBank Contract: **$ESTEEM**: (Coming Soon) [PreviousPulse](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info/pulse) [NextHow to Acquire Esteem?](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info/pulse/esteem/how-to-acquire-esteem) Last updated 1 month ago --- # Favor Tokens | BetterBank Contracts: **$DAIF:** (Coming Soon) **$PLSF:** (Coming Soon) **$PLSXF:** (Coming Soon) [PreviousTrading and Price Model](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info/pulse/esteem/trading-and-price-model) [NextTypes of Favor and Trading Favor](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info/pulse/favor-tokens/types-of-favor-and-trading-favor) Last updated 1 month ago --- # Pulse | BetterBank [Esteem](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info/pulse/esteem) [Favor Tokens](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info/pulse/favor-tokens) [PreviousChain Specific Token Info](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info) [NextEsteem](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info/pulse/esteem) --- # Esteem | BetterBank Esteem ($ESTEEM) is the **cornerstone of BetterBank’s ownership structure**, representing a **share of the protocol** while maintaining a dynamic, elastic supply model. Unlike speculative assets, Esteem’s **statically increasing value** is designed to make the **supply scale alongside the protocol’s growth**. **How Esteem Works** * **Represents ownership in BetterBank**, although it **does** **not grant direct control** over operations or treasury funds. * **Functions as a staking and rewards token**, incentivizing participation in the ecosystem. * **Minting increases Wildlands gains.** Esteem **may be minted for** any of the **tokens listed** in the Stronghold, and **the treasury** **utilizes** the tokens it receives in this way by **directly depositing** them in **the Stronghold**, increasing **Wildlands borrowing capacity**. * **Smelting increases Grove Rewards.** Esteem can be **burned** (or "smelted") **to receive newly minted Favor** of the Smelter's choice, **increasing the supply** of that Favor type and as such the **rewards in the Groves**, that **grow by a percentage of supply** daily. Esteem’s Role in the BetterBank Ecosystem * **Governance:** Future protocol upgrades may introduce **governance rights** for Esteem holders in BetterBank's **intended move to full decentralization**. * **Yield Generation:** Holding and staking Esteem **Enables Favor issuance**, reinforcing **BetterBank’s self-sustaining financial model**. * **Acts as a provider of value for the community**, as its minting ensures **inflows into the Treasury** that **services the entire protocol** and thereby **helps all users**. * **Rewards long-term participants** through **continuous rewards** and continuous price increase, encouraging **sustainable staking and lending** behavior. [PreviousTokens of Better Bank](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank) [NextFavor Tokens](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/favor-tokens) Last updated 27 days ago --- # Favor Tokens | BetterBank Contracts: **$USDTF:** (Coming Soon) **$ETHF:** (Coming Soon) [PreviousTrading and Price Model](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info/arbitrum/esteem/trading-and-price-model) [NextTypes of Favor and Trading Favor](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info/arbitrum/favor-tokens/types-of-favor-and-trading-favor) Last updated 1 month ago --- # Esteem | BetterBank Contract: **$ESTEEM**: (Coming Soon) [PreviousArbitrum](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info/arbitrum) [NextHow to Acquire Esteem?](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info/arbitrum/esteem/how-to-acquire-esteem) Last updated 1 month ago --- # Treasury | BetterBank [](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/treasury#the-financial-backbone-of-betterbank) The Financial Backbone of BetterBank ---------------------------------------------------------------------------------------------------------------------------------------------------------------------- The **BetterBank Treasury** is the **economic foundation** of the protocol, managing **protocol revenue, liquidity provisioning, and long-term growth initiatives**. Operated through a **secure multisig governance structure**, the Treasury **receives, allocates, and invests funds** to ensure the **stability and sustainability** of the ecosystem. **Equity & Value Distribution** * **Treasury Growth Allocation** – **20% of Treasury value increase** (i.e. new growth not existing value) within any given period is reserved for **equity participants** (founding team & private stakeholders). This 20% will not ever increase, but may decrease in the future. * **Esteem Distribution** – **25% of Esteem minted** is allocated to equity participants, ensuring alignment with **protocol expansion and sustainability**. This +25% comes down to the same as the treasury's -20%. This share also will not increase, but may decrease. * **Long-Term Protocol Sustainability** – BetterBank's structured approach ensures that **it can continuously grow.** The larger the utilization, the better the protocol functions to everyone's benefit. The **BetterBank Treasury is more than just a reserve**—it’s an **active liquidity engine**, a **strategic investment vehicle**, and a **stabilizing force** that ensures the protocol remains **robust, adaptable, and future-proof**. 🚀 [PreviousThe Wildlands](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/the-wildlands) [NextRevenue](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/treasury/revenue) Last updated 2 months ago --- # The Stronghold | BetterBank **Secure Lending & Passive Yield Generation** **Advise to not borrow against Stronghold deposits:** Users **should not** borrow against their own Stronghold deposits, as BetterBank **does not optimize** for this function. Instead, borrowing is designed to **occur in the Wildlands using Favor LP's as collateral**. Rather the Stronghold is optimized for passive positions earning high APY on blue chip assets and stablecoins while also receiving Esteem rewards for additional yield opportunities in the Wildlands!! The **Stronghold** is the foundation of **BetterBank’s lending and borrowing ecosystem**—a **high-yield, low-risk** lending market designed for **passive income generation**. Built on **Aave V3 architecture**, the Stronghold allows users to **earn interest on their deposits**, while borrowers access liquidity backed by **over-collateralized loans**. **How It Works** * **Stronghold Depositors** supply assets into lending pools and earn interest, which is paid by **Wildlands borrowers** who take loans against their Favor LP collateral. * **Interest rates dynamically adjust** based on demand, ensuring that capital remains efficiently utilized. * The **protocol prioritizes security**, utilizing **battle-tested smart contracts** and **multisig governance** for risk management. **High-Yield Opportunities** Unlike **traditional DeFi lending protocols**, the Stronghold offers **exceptionally high interest rates (50-72% APY standard, with 360% APY at its most extreme)**. * These rates are sustained through **BetterBank’s innovative credit system** in the **Wildlands**, ensuring depositors receive **top-tier returns**. * The **protocol self-regulates**, automatically balancing interest rates to maintain **market stability** and prevent excessive utilization. **Supported Assets & Expansion Plans** * **Initial Launch Assets:** **ETH, USDT on Arbitrum, and PLS, pDAI, PLSX on PulseChain** * **Anticipated Future Listings:** BTC stables, Gold stables, additional blue-chip assets and viable tokens of well developed and enduring communities. * New asset listings will be introduced **gradually** based on **security assessments** and **market demand**. **Built for Long-Term Growth** * The Stronghold is designed for users who believe in **holding assets long-term while earning high-yield rewards**. * The **BetterBank team continuously monitors** asset safety and may adjust listings **to protect depositors**. **Risk Mitigation & Security** * **Contract Security:** Built on **Aave V3’s battle-tested** smart contract architecture. * **Treasury Protection:** The **BetterBank Treasury participates as a depositor**, providing additional liquidity safeguards. * **Utilization-Based Interest Scaling:** If an asset’s lending pool reaches **80% utilization**, further loans in that asset are disabled and interest rates start spiking to incentivize **new deposits and faster liquidations,** preventing liquidity lockups. **The Stronghold’s Role in the BetterBank Ecosystem** * **Provides a safe, sustainable lending market** for compounding wealth increase in assets of choice. * **Powers the broader DeFi economy** by supplying liquidity to borrowers. * **Integrates with the Wildlands** to maintain a **self-reinforcing liquidity loop**, ensuring long-term capital efficiency. The **Stronghold is the bedrock** of BetterBank’s lending model—offering **unparalleled APY, deep liquidity, and sustainable capital growth**. 🚀 [PreviousStronghold and Wildlands TLDR](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/stronghold-and-wildlands-tldr) [NextThe Wildlands](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/the-wildlands) Last updated 6 days ago --- # Stronghold and Wildlands TLDR | BetterBank [PreviousEarn Favor](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info/arbitrum/favor-tokens/earn-favor) [NextThe Stronghold](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/the-stronghold) Last updated 1 month ago ### [](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/stronghold-and-wildlands-tldr#stronghold-and-wildlands-wallet-separation) **Stronghold & Wildlands Wallet Separation** **To prevent loss**, BetterBank **strongly recommends** using **separate wallets** for **Stronghold** and **Wildlands** positions. * **Stronghold = Safe Lending** – Designed for high passive yield with minimal risk. * **Wildlands = High-Risk Credit System** – Positions in Wildlands are prone to **rapid liquidations**. * **Mixing Positions = High Risk** – If a **Wildlands position is liquidated**, all **Stronghold positions** of that same wallet **are also liquidated**. * **Advanced Users Only** – While expert users may choose to manage both within one wallet, **it must be understood** that **any safety** that is by design inherent to the Stronghold **immediately becomes void** through such actions**.** **Recommendation:** Always use **separate wallets** for each strategy, and **protect your Stronghold assets** from the **high-risk** exposure that **is normal in the Wildlands**. **– Secure Lending & interest yielding Hub** * **Primary Use Case:** Safe lending with **high APY** returns. * **How It Works:** Users **deposit assets** and earn **interest** and . The interest is paid by borrowers on the Wildlands side of BetterBank. * **Risk Level:** **Very Low** – Funds are secured with **collateral-backed loans** and liquidations protect depositors. * **Key Features:** * High-yield lending markets (**50-72% APY as expected standard**). * Uses **Esteem** as an additional reward for depositors. * Borrowing requires **over-collateralization** to maintain system security. **– Advanced DeFi Credit Leveraging Seigniorage** * **Primary Use Case:** Uncertain but potentially extreme rewards, using a **synthetic credit system** with . * **How It Works:** Users **earn respective Favor** token types by staking Esteem in specific groves in the Wildlands and use Favor LP as **collateral for loan positions**. * **Apparent Risk Level:** **High** – Favor-backed positions are subject to **systematic liquidations** and interest rate fluctuations. * **True Risk Level – Very Low**: Regardless of any liquidations, **the user's Esteem remains untouched**, meaning that Wildlands users will quickly have new free Favor to create new positions with. * **Key Features:** * **Capital Efficient Borrowing** with Favor token LP acting as collateral. * **Demand Driven Seigniorage** based supply expansion along combined with collateralized credit **borrowing being more profitable** than selling **starkly reduces Favor sell pressure**. * **High risk, high reward** – A 50% liquidation of collateral occurs at **85% LTV**, resetting the LTV to about 80%, **but liquidation only strengthens the protocol and does not hurt the borrower since collateral is earned through seigniorage**. Synergistically, **the Stronghold provides a safe lending foundation**, while **the Wildlands offers a dynamic DeFi experience** for users looking to capitalize on the protocol's growth. 🚀 [**Stronghold**](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/the-stronghold) [Esteem](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/esteem) [**Wildlands**](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/the-wildlands) [**Favor tokens**](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/favor-tokens) --- # The Wildlands | BetterBank **Risk & Wallet Separation - Don't combine Stronghold and Wildlands Positions on the same Wallet** * **The Wildlands is volatile**—positions can be liquidated quickly even if managed properly. * **Do NOT mix Stronghold and Wildlands positions in the same wallet**. * If liquidation occurs, **50% of all assets in that wallet (including Stronghold deposits) are captured upon liquidation**. * **BetterBank strongly recommends keeping separate wallets** for each strategy, even if just using multiple Wildlands strategies, because some strategies are more volatile than others. * **If you combine Stronghold and Wildlands assets in one wallet, you assume full risk.** The **Wildlands** is BetterBank’s **dynamic credit environment**, designed to **replace traditional fractional reserve banking** with a fully **on-chain, collateral-backed system**. Unlike the Stronghold, which focuses on passive interest-bearing deposits, the Wildlands enables users to earn **synthetic credit (Favor Token types),** through the groves where Esteem is staked, and use them in **deep, liquid LP pairs** as collateral to borrow against. The borrowed assets don't require repayment, as a liquidation would take care of that. This means that the Wildlands is a source of immediately usable passive income. E**ach Favor type is specific to its underlying asset**, such as **USDTF** (Favor paired to USDT) and **ETHF** (Favor paired to ETH). These tokens are paired only with their native assets (e.g., USDTF–USDT) in liquidity pools and used as **collateral for borrowing**. **How the Wildlands Works** * **Users earn** multiple types of **Favor tokens** by **staking Esteem** in the respective **Wildlands Groves**. * Each grove emits corresponding Favor Type * **Pulse**: **DAIF, PLSF, and PLSXF** Groves * **Arbitrum**: **USDTF and ETHF** Groves * Each **Grove** **emits** an amount of **Favor** each day equaling a **percentage** of the current **supply** **of** that **Favor** token. The **percentage equals** the **ratio** **to** its **paired asset** in percentages, **up to 3%**. For example, **if PLSF** (Pulse Favor) is worth **2.56 PLS, then** that day the **PLSF** Grove **prints 2.56%** of total **PLSF supply** **to** all **stakers of Esteem** in that Grove. * Favor types are then **paired with their respective paired assets (i.e. USDT, PULSE)** to create LP tokens (e.g., USDTF–USDT LP). Primarily this happens through an automated flash-loan action when posting the Favor as collateral. * These LP tokens act as **collateral to borrow from the Stronghold**. * **Borrow against** the value of your \[Favor-asset\] **LP position**, **up to** a the **LTV** threshold. * **Borrowing** is the **optimal strategy** versus selling as **it yields** more **assets in-hand** than selling at the 50% tax rate. This sustains the Favor prices * **Only when borrowing** of assets **is disabled** **because of** a **lack** of available assets, is **selling** of Favor **warranted** as a back-up option to **profit** on it. Since the **sell tax** **strengthens** the **treasury** **and** the treasury instantly **deposits**, **the selling** of Favor immediately **results** in **increased asset availability**. **Establishing a Wildlands Position** Users can create a Wildlands position in two ways: 1. **Wildlands Flash-in** – Automatically forms the Favor LP using a **flash loan**, then deposits the LP as collateral. The result: * A **50% Loan-to-Value (LTV)** position is immediately created. * Up to **80% LTV** can be borrowed based on LP collateral so 30% of the LP value is available to borrow against * The LP position is 2x the value of the underlying Favor Token so users see 60% return on their Favor position vs 50% return from selling. 2. **Manual LP Creation** – Advanced users can manually pair Favor tokens with their respective assets and deposit the LP directly. **Collateral Valuation & Limits** * Favor tokens are **priced in ratio** **to** their native asset, but for collateral purposes, BetterBank **only recognizes Favor prices up to 3.5x the ratio**. * This **protects the system from exploits through price manipulation** and helps ensure **borrowing remains safe and predictable**. **Liquidation Mechanics** If a Wildlands position reaches **85% LTV**, it becomes eligible for liquidation. Here's what happens: * **50% of the LP collateral is seized** and broken. * The blue chip portion **is claimed** and the Favor portion is **sold through an untaxed route**. * **10% of the seized value is claimed by the protocol** as a penalty **to strengthen the Treasury**, increasing available borrowable assets for everyone. * The protocol uses the remaining collateral to **repurchase and repay the borrowed assets**, bringing the position back to a manageable ~80% LTV. 🛡️ **Esteem is never touched during liquidation.** Even after liquidation, your Esteem remains intact—ready to generate more Favor and rebuild your position **Risk & Wallet Management** * The Wildlands is **risk-intensive**—positions can be liquidated quickly due to price fluctuations or high utilization. * **Never mix Wildlands and Stronghold assets in the same wallet.** * If a Wildlands position is liquidated, **Stronghold deposits in the same wallet may also be affected**. * **Use separate wallets** for each to minimize risk. **The Wildlands’ Role in BetterBank** * **Powers the protocol’s decentralized credit system**. * **Replaces the need for centralized trust** in banking with fully algorithmic collateralized lending instead of fractional reserve banking based on "good bank management". * **Fuels liquidity and borrowing** across the BetterBank ecosystem. The Wildlands is where **seigniorage controlled credit meets capital efficiency**—designed not for speculative defi investment, but for **true on-chain financial engineering**. For users who are willing to understand DeFi mechanics and risk, it unlocks powerful new tools for strategic borrowing and yield. 🧠🔥 [PreviousThe Stronghold](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/the-stronghold) [NextTreasury](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/treasury) Last updated 27 days ago --- # Revenue | BetterBank [](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/treasury/revenue#treasury-revenue-sources) **Treasury Revenue Sources** ---------------------------------------------------------------------------------------------------------------------------------------------------------- The Treasury accumulates funds through multiple streams, ensuring **continuous liquidity and operational efficiency**: * **Interest Revenue** – The Treasury itself acts as a **Stronghold depositor**, earning yield like any other user. * **Reserve Factor** – A percentage of **interest paid by borrowers** is allocated to the Treasury. * **Esteem Minting Fees** – When users mint **Esteem ($ESTEEM)**, the funds contribute directly to Treasury reserves. * **Liquidation Penalties** – In the **Wildlands**, a portion of seized collateral during liquidations **flows into the Treasury**. * **Favor Sales Tax** – Selling **Favor i**ncurs a **50% tax**, with the proceeds directed to Treasury operations. [PreviousTreasury](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/treasury) [NextFund Usage](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/treasury/fund-usage) Last updated 2 months ago --- # Fund Usage | BetterBank [](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/treasury/fund-usage#strategic-use-of-treasury-funds) **Strategic Use of Treasury Funds** --------------------------------------------------------------------------------------------------------------------------------------------------------------------------- BetterBank’s Treasury plays an **active role in expanding and strengthening** the protocol: * **Liquidity Seeding for New Asset Listings** – The Treasury can **provide initial liquidity** when adding new tokens to the Stronghold. * **DeFi Ecosystem Growth** – Treasury funds may be used to **support or incubate** promising DeFi projects. * **Tokenization & RWA Acquisition** – Acquiring **real-world assets (RWAs)** to tokenize and integrate into the protocol. * **Impact Investments** – Investments or donations **real-world initiatives** that align with **BetterBank’s vision** of sovereign financial empowerment, decentralization, and the healing of our world. * **Giving Back -** Sponsoring events and initiatives worldwide that support cultural growth and DeFi adoption. [PreviousRevenue](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/treasury/revenue) [NextTreasury Security](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/treasury/treasury-security) Last updated 2 months ago --- # Arbitrum (Coming Soon) | BetterBank [PreviousPulse (Coming Soon)](https://betterbanks-organization.gitbook.io/better-bank/contracts-coming-soon/pulse-coming-soon) [NextAudit (Coming Soon)](https://betterbanks-organization.gitbook.io/better-bank/audit-coming-soon) --- # Treasury Security | BetterBank [](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/treasury/treasury-security#multisig-wallet-structure-and-security) **Multisig Wallet Structure & Security** ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- To maintain **both security and operational flexibility**, the Treasury utilizes **multiple wallets**: * **Primary Treasury Wallet** – **Rarely touched**, secured by **strict multisig protocols** to prevent unauthorized access. * **Operational Wallets** – Used for **marketing, protocol expenses, and contractor payments**. * **Public Transparency** – The total **Treasury balance is displayed in the BetterBank dApp**, ensuring **full accountability**. [PreviousFund Usage](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/treasury/fund-usage) [NextProtocol Risks & Mitigations](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/protocol-risks-and-mitigations) Last updated 2 months ago --- # Human Security | BetterBank **The primary vector** for any attack is through **human vulnerability. BetterBank** is run by **a team** that is **committed to transparency,** with **experienced founders** who **care for the growth of defi.** We really **detest scams and rugs** as the fact that those happen in defi are the **primary way** for governments and central banks **to fabricate a narrative** that defi would **seemingly require their regulations**. As **we are convinced** that **defi needs no regulations, we take our responsibility** in proving that**. Temporary hires** receive **no direct access** to any of **the live protocol.** [PreviousAdmin Access](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/admin-access) [NextAave v3 Code](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/admin-access/aave-v3-code) Last updated 5 days ago --- # Protocol Risks & Mitigations | BetterBank While **BetterBank** is built on tested frameworks and experienced design, every **DeFi** protocol carries inherent risks. The following sections outline known risks to the protocol and the safeguards in place to mitigate them. This is a non-exhaustive list, but it reflects an honest effort at transparency and risk disclosure. * * * ### [](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/protocol-risks-and-mitigations#contract-risks) 🧩 Contract Risks Smart contracts are immutable and trustless, but that also means **any flaw or vulnerability in the code** can be exploited. BetterBank relies on code deployed to the blockchain — not on traditional legal contracts — making smart contract safety critical. Mitigation Summary **Tried and true code** BetterBank is built on **Aave V3**, a codebase that has secured **billions in TVL** and been tested under real-world conditions for years. **Experienced Developer** Our lead developer and cofounder has extensive experience in DeFi, with successful deployments of Aave forks and multiple seigniorage protocols. He's a known name for **contract auditing and troubleshooting**. * * * ### [](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/protocol-risks-and-mitigations#risk-of-temporarily-frozen-assets) 🧊 Risk of Temporarily Frozen Assets There may be instances where **all available tokens of a specific type have been borrowed**, temporarily preventing withdrawals. While this is rare, it's possible in high-utilization events. Mitigation Summary **Extreme Interest Rates** Interest rates automatically **spike past 80% utilization**, incentivizing quick **repayment** or **new deposits**, freeing up assets for withdrawal. **Maximum Borrowing Potential (MBP)** Borrowing is **disabled beyond 80% utilization**, capping demand and protecting liquidity. Withdrawals remain available until 100%. **Treasury is a Depositor** The **treasury holds funds in the Stronghold** and commits not to withdraw once utilization is near MBP, adding a backstop layer of available liquidity. * * * ### [](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/protocol-risks-and-mitigations#risk-of-bad-debt) 💸 Risk of Bad Debt In rare cases — such as a **liquidation cascade during network congestion** — seized collateral may not fully repay borrowed assets. This can occur if **LP-based collateral is shallow** or slippage is too high. Mitigation Summary **Favor LP Cushion** A **dedicated LP buffer** is maintained to **absorb slippage** during liquidation events, helping reduce price impact and increase repayment efficiency. **Borrow Limits** Borrowing is **capped per asset**, especially in early stages, to limit exposure to any one asset. These limits are updated manually and will later be automated. **Isolation Mode** Tokens with **shallow liquidity** are marked **isolated** and may only be borrowed against their **matching Favor LP**, preventing unsafe cross-lending. **Protocol-Owned Liquidity (POL)** BetterBank will **build LPs using treasury assets** to deepen liquidity, especially for isolated tokens. Once healthy, these tokens may have isolation lifted. * * * ### [](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/protocol-risks-and-mitigations#risk-of-design-mistakes-or-innovation-in-attack-forms) 🔬Risk of Design Mistakes or Innovation in Attack Forms BetterBank introduces **novel mechanics** that haven’t been widely tested in the wild. While the system is **carefully designed** and reviewed by **experienced developers**, innovation in DeFi always carries the potential for **unexpected attack vectors**. We stay **vigilant**, conduct **ongoing reviews**, and work with **trusted white hats** to stay ahead of emerging threats. Mitigation Summary **A team in the know** BetterBank is built by developers who are **deeply involved in DeFi**. They **actively test and challenge** their own assumptions to uncover potential vulnerabilities. **Bug bounties and white hats** A **bug bounty program** will be initiated as soon as the treasury allows. BetterBank maintains an **extensive white-hat network**, with trusted experts occasionally reviewing or attacking the system in good faith. * * * ### [](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/protocol-risks-and-mitigations#extreme-outcomes) ☢️Extreme Outcomes In rare scenarios where **liquidity dries up completely**, there is a theoretical risk of a **system-wide failure** through complete and utter disinterest by people to ever invest again, regardless of **the benefits** and **the incentives**. This is **beyond just a** **bank run in Tradfi**, because BetterBank can take a few of those. While multiple **safeguards** are in place to prevent this, users should understand that **DeFi protocols are not insured** like traditional banks. BetterBank’s design significantly **reduces this risk**, but it remains a **tail-end possibility** to be aware of. Even in this extreme situation though, the **resillient design** of BetterBank should be sufficient to **protect against** Strongholder investment loss. **In all fairness** though, if we think of such extreme outcomes, **the opposite is also possible.** BetterBank may theoretically become **so popular** that there is a **global takeover**, where BetterBank becomes the **new standard of finance.** * * * ### [](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/protocol-risks-and-mitigations#final-disclaimer) 🧾Final Disclaimer BetterBank is designed with care, security, and sound tokenomics at its core. However, **DeFi is inherently risky**, and no set of smart contracts can guarantee safety in all scenarios. We believe in **radical transparency**, and we offer this page not as a scare tactic, but as part of our commitment to **informed participation**. BetterBank acknowledges and addresses DeFi-specific risks by combining **battle-tested architecture**, **intelligent tokenomics**, and **proactive risk management and engineering**. Users are encouraged to: * Use **separate wallets** for Stronghold and Wildlands positions. * Spread out **larger investments** over even **more wallets.** * **Stay informed** via this documentation and the **official channels**. * Understand that even with these safeguards, **DeFi carries inherent risk** and should be used responsibly. Please use BetterBank responsibly. [PreviousTreasury Security](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/treasury/treasury-security) [NextAdmin Access](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/admin-access) Last updated 1 day ago --- # Earn Favor | BetterBank **How to Earn Favor** * Favor is **minted through staking Esteem ($ESTEEM)** in designated G**roves** within **the Wildlands**. * The **rate of Favor minting is market-driven**, meaning Favor supply growth expands when demand is high and contracts when demand is low. * Favor’s daily minting rate varies based on its **ratio to its paired asset**: * **If a Favor type trades at 3x its paired asset or more, 3% of its total supply is minted to its Grove daily.** * **If it trades under 3x its pair, the percentual increase will adjust accordingly** * **Users earn Favor proportionally** based on their **Esteem stake** in each grove. * Users may also smelt (burn-mint) Esteem to receive Favor * Since **Esteem is illiquid** (i.e. no LP and therefore **not tradeable** via swaps) **users may** choose to **smelt** (burn) their **Esteem** **for** 70% of its value in (newly minted) **Favor** tokens of choice. * **Smelting** Esteem **is not** considered **a primary strategy** and acts **only** as **an opt-out** to the BetterBank system. [PreviousTypes of Favor and Trading Favor](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info/pulse/favor-tokens/types-of-favor-and-trading-favor) [NextArbitrum](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info/arbitrum) Last updated 27 days ago --- # Types of Favor and Trading Favor | BetterBank **Types of Favor & Liquidity Pools** At launch, BetterBank will offer **three Favor types**: * **DAIF** – Soft Pegged and liquidity-paired with pDAI * **PLSF** – Soft Pegged and liquidity-paired with PLS * **PLSXF** - Soft Pegged and liquidit-paired with PLSX * **Future Favor Tokens**– Additional Favor types maybe introduced **as liquidity deepens** and the protocol grows. Favor's liquidity pool structure ensures that it **follows the price movements of its paired asset**, resulting in higher price stability versus that asset, while offering users **deep liquidity for borrowing and trading**. **Trading & Market Value** Favor tokens can be **bought and sold through their respective liquidity pools (LPs)**. * **Buying Favor:** Users who **purchase Favor receive a 44% bonus in Esteem ($ESTEEM)** based on Esteem's current price, **further rewarding** long-term participation. * Buying Favor over the LP should only be done if there are assets available to borrow immediately after, because the +44% Esteem bonus is designed to translate in an 8% discount on Esteem versus minting Esteem in that situation, while in case of no borrowable assets it's a straight loss. * If borrowing is unavailable, then minting Esteem directly is the better choice, especially since that action by definition makes assets available for borrowing. This is because the treasury stakes a large portion of the income that the protocol receives from mints. * **Selling Favor:** A **50% sell tax applies**, with proceeds going to the **BetterBank Treasury**. Future expansions to the ecosystem may introduce **Favor burn mechanisms** to further reduce supply and strengthen price stability. [PreviousFavor Tokens](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info/pulse/favor-tokens) [NextEarn Favor](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info/pulse/favor-tokens/earn-favor) Last updated 27 days ago --- # Trading and Price Model | BetterBank **Esteem’s Pricing Model** * **Initial Price:** $**16 per Esteem at launch.** * **Daily Price Increase:** **+0.25 USD per day**, ensuring **gradual price appreciation** and fair value for late entrants. **Esteem’s Unique Minting and Smelting Mechanism** * **Esteem** may be **minted at will** using **any of the assets** listed **in the Stronghold**, removing the need for a liquidity pool. **The funds** so used **increase Stronghold deposits**, **providing** the Wildlands with **more borrowing capacity**. * **Esteem** may be **burned at will** to receive **Favor**, with a **conversion rate of 70%** of Esteem’s current price in **Favor value**. This **ensures** that any reduction of Esteem does not impair the **Stronghold's stability**. * This system ensures **seamless adjustment to demand** while **preventing** **protocol instability**. [PreviousHow to Acquire Esteem?](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info/pulse/esteem/how-to-acquire-esteem) [NextFavor Tokens](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info/pulse/favor-tokens) Last updated 1 month ago --- # How to Acquire Esteem? | BetterBank * **Earning Rewards in the Stronghold** – Depositors in **BetterBank’s Stronghold lending pools** receive Esteem as a **reward for supplying liquidity**. * **Direct Minting** – Users can **mint Esteem at a perpetually increasing** (relative to the USD) **price**, using pDAI, PLS (PULSE), PLSX (PULSEX) or other PulseChain assets yet to come. * **Buying Favor** – Purchasing **Favor rewards users with an Esteem bonus equal to 44% of the Favor purchase value**. [PreviousEsteem](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info/pulse/esteem) [NextTrading and Price Model](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info/pulse/esteem/trading-and-price-model) Last updated 27 days ago --- # Trading and Price Model | BetterBank **Esteem’s Pricing Model** * **Initial Price:** **10 USDT per Esteem**, increasing to **15 USDT during presale**, and **16 USDT at launch**. * Note: With the delay of the Arbitrum launch, it is uncertain if the presale will stay as described above. * **Daily Price Increase:** **+0.25 USDT per day**, ensuring **gradual price appreciation** and fair value for late entrants. **Esteem’s Unique Minting and Smelting Mechanism** * **Esteem** may be **minted at will** using **any of the assets** listed **in the Stronghold**, removing the need for a liquidity pool. **The funds** so used **increase Stronghold deposits**, **providing** the Wildlands with **more borrowing capacity**. * **Esteem** may be **burned at will** to receive **Favor**, with a **conversion rate of 70%** of Esteem’s current price in **Favor value**. This **ensures** that any reduction of Esteem does not impair the **Stronghold's stability**. * This system ensures **seamless adjustment to demand** while **preventing** **protocol instability**. [PreviousHow to Acquire Esteem?](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info/arbitrum/esteem/how-to-acquire-esteem) [NextFavor Tokens](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info/arbitrum/favor-tokens) Last updated 27 days ago --- # How to Acquire Esteem? | BetterBank * **Earning Rewards in the Stronghold** – Depositors in **BetterBank’s Stronghold lending pools** receive Esteem as a **reward for supplying liquidity**. * **Direct Minting** – Users can **mint Esteem at a perpetually increasing price**, using USDT, ETH, or other blue-chip assets in the future. * **Buying Favor** – Purchasing **Favor rewards users with an Esteem bonus equal to 44% of the Favor purchase value**. [PreviousEsteem](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info/arbitrum/esteem) [NextTrading and Price Model](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info/arbitrum/esteem/trading-and-price-model) Last updated 27 days ago --- # Types of Favor and Trading Favor | BetterBank **Types of Favor & Liquidity Pools** At launch, BetterBank will offer **two primary Favor types**: * **USDTF** – Soft Pegged and liquidity-paired with **USDT**. * **ETHF** – Soft Pegged and liquidity-paired with **ETH**. * **Future Favor Tokens**– Additional Favor types will be introduced **as liquidity deepens** and the protocol's ecosystem grows. Favor's liquidity pool structure ensures that it **follows the price movements of its paired asset**, resulting in higher price stability versus that asset, while offering users **deep liquidity for borrowing and trading**. **Trading & Market Value** Favor tokens can be **bought and sold through their respective liquidity pools (LPs)**. * **Buying Favor:** Users who **purchase Favor receive a 44% bonus in Esteem ($ESTEEM)** based on Esteem's current price, **further rewarding** long-term participation. * Buying Favor over the LP should only be done if there are assets available to borrow immediately after, because the +44% Esteem bonus is designed to translate in an 8% discount on Esteem versus minting Esteem in that situation, while in case of no borrowable assets it's a straight loss. * If borrowing is unavailable, then minting Esteem directly is the better choice, especially since that action by definition makes assets available for borrowing. This is because the treasury stakes a large portion of the income that the protocol receives from mints. * **Selling Favor:** A **50% sell tax applies**, with proceeds going to the **BetterBank Treasury**. Future expansions to the ecosystem may introduce **Favor burn mechanisms** to further reduce supply and strengthen price stability. [PreviousFavor Tokens](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info/arbitrum/favor-tokens) [NextEarn Favor](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info/arbitrum/favor-tokens/earn-favor) Last updated 27 days ago --- # Earn Favor | BetterBank **How to Earn Favor** * Favor is **minted through staking Esteem ($ESTEEM)** in designated G**roves** within **the Wildlands**. * The **rate of Favor minting is market-driven**, meaning Favor supply growth expands when demand is high and contracts when demand is low. * Favor’s daily minting rate varies based on its **ratio to its paired asset**: * **If a Favor type trades at 3x its paired asset or more, 3% of its total supply is minted to its Grove daily.** * **If it trades under 3x its pair, the percentual increase will adjust accordingly** * **Users earn Favor proportionally** based on their **Esteem stake** in each grove. * Users may also smelt (burn-mint) Esteem to receive Favor * Since **Esteem is illiquid** (i.e. no LP and therefore **not tradeable** via swaps) **users may** choose to **smelt** (burn) their **Esteem** **for** 70% of its value in (newly minted) **Favor** tokens of choice. * **Smelting** Esteem **is not** considered **a primary strategy** and acts **only** as **an opt-out** to the BetterBank system. [PreviousTypes of Favor and Trading Favor](https://betterbanks-organization.gitbook.io/better-bank/tokens-of-better-bank/chain-specific-token-info/arbitrum/favor-tokens/types-of-favor-and-trading-favor) [NextStronghold and Wildlands TLDR](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/stronghold-and-wildlands-tldr) Last updated 27 days ago --- # Seigniorage Code | BetterBank Our **seigniorage contracts, as well as peripheral contracts** like liquidation bots and token contracts, **are our own**. They are loosely based on older seigniorage protocols, but have seen so many adjustments that referral will only lead to confusion. **Our seigniorage side** of the protocol **and its token contracts** **can be updated**, so we can essentially do anything with them. the following section **discusses** the **minting** of tokens, because that is what worries most people. We'll **describe** what we will and won’t mint tokens for and **how token minting does** or doesn’t **affect the users**. **Esteem** We mean to have **BetterBank** **mint Esteem** almost exclusively **through user-initiated actions** or user rewards. **The only** planned **exception** to this **is** a reserve mint for the treasury **at the start of the protocol**. **This** initial mint **is intended for** the team members **who have helped build BetterBank** in the year **before the launch.** We’ll share **these funds** to them at a pace that **won’t disrupt the Favor distribution** in the Groves. We **may also use** this minted **Esteem for marketing** purposes in the future, but not much else. We **don’t expect to** **manually mint Esteem** ever again in the future. Since **Esteem doesn’t have an LP**, no amount of **Esteem minted** could extract funds unduly. However, an overminting could dilute the groves and/or **could be smelted into Favor tokens**, so it’s still **not** **something that should ever happen**. **Favor** Outside of the protocol **printing Favor to the Groves** and to the Esteem smelter, there are **a few** other instances where the **protocol mints Favor** tokens. **BetterBank employs a contract** that **mints Favor** and then **zaps** that **Favor** into an **LP cushion** for the **treasury** to hold. The exact workings and **the reason** for it **is explained** in the **whitepaper** under the section about the **LP cushion**. This minting **is required for protocol safety,** and it **is designed** to happen in such a way that it **rarely as well as barely impacts** the **Favor** token price. **While setting up** the protocol or a newly listed token, the team creates **Wildlands** positions on burner wallets **to start up** the **interest rate** for the **Stronghold** side and to have a **starting supply** for the Groves to calculate from. **We’ll borrow extra** funds on these wallets, **and we’ll mint Favor** to pair these funds with, **so that we have an initial LP cushion**. We then **send that LP** to a specific **treasury** and leave the **burner wallets** to their fate of eventually **getting liquidated** as interest on their debts rise. We’ll **set the wallets** intentionally **at different risk levels**, so that they don’t liquidate all at once. Any **minting of Favor increases** the **supply**, and any increase in the supply **grows** the **daily output in the Groves**. This is **essentially beneficial** to **Wildlands** users. The **BetterBank team members do not sell Favor untaxed,** but **admin** access provides the ability to **whitelist wallets** so they **pay** **no tax**. Because **full decentralization remains a goal,** we could potentially work towards **decentralized** admin **access,** and history has shown that it **sometimes** is possible to **exploit** such decentralized admin systems. Any **huge untaxed sell-off** by someone with **admin access** (which would be a **rug pull**) **would** essentially **liquidate all Wildlands positions** using **that Favor type** and **bring down** the **Stronghold interest rates,** but **would not otherwise endanger** any user’s **Stronghold** funds. So **even if** in the far future **someone manages** to get **malevolent admin access**, the **Stronghold remains safe**. [PreviousAave v3 Code](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/admin-access/aave-v3-code) [NextConnect with BetterBank](https://betterbanks-organization.gitbook.io/better-bank/other-info/connect-with-betterbank) Last updated 5 days ago --- # Aave v3 Code | BetterBank [PreviousHuman Security](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/admin-access/human-security) [NextSeigniorage Code](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/admin-access/seigniorage-code) Last updated 5 days ago Our **Lending and Borrowing is** a fork of **Aave V3 code**, that they graciously allow anyone to use. **These contracts**, once deployed, **cannot be upgraded**, so we are **completely unable to access anything** that **they didn’t mean** for admins **to access**. We will **describe the things we can change** that are important **for BetterBank**, but a full list can be found here in . **Lending pool contracts** The BetterBank team **cannot ever access any deposited tokens that can serve as collateral** or are borrowable. There is a rescue token option, but that option **only works for delisted tokens** accidentally sent to the contract. This means that **if you lose access to or suffer from exploitation that compromises the security of** the wallet with which you have deployed collateral, **we cannot help you**. **This** inability however **means absolute safety.** There is simply **no possibility for anyone but you to withdraw** your assets, ever. **Setting interest rates and lending spreads** The **BetterBank** team **can change the interest rates** and also the spread between paid interest and received interest. **We don’t plan on changing these,** though and instead we plan on sticking by the settings we explain elsewhere in the docs. **But should we need** to change something, **we can**. **Borrow caps & collateral caps** The **BetterBank** team **can set a maximum** to either of these values, **per token**. We use this **in the background** as an extra layer **for safety**, in such a way that normal use should not ever reach the caps. **We can** use this feature also if we ever want **to delist a token**, as we can phase out a token by lowering these values over time. **Listing, delisting, and isolating** Obviously **we can list new tokens and delist them too**. And **we can “isolate”** markets, meaning that certain collateral can only be used to borrow certain assets. [Aave’s documentation](https://aave.com/docs/developers/smart-contracts/acl-manager) --- # Admin Access | BetterBank **How Decentralized is BetterBank?** **BetterBank** and its team balances the need for **Security through Decentralization** and **Security through Adaptability.** On the one hand, we make sure that even **admin access to protocol contracts does not mean access to investor funds.** On the other hand we make sure that **we can keep innovating and respond to the market.** Also, we're the **first protocol of its kind**, so we must leave margin for error in our design, and **keep** the access to update **security and efficiency**. Consequently, **we keep** full **access to** all of **our own code.** However, since **part** of the used code **is Aave v3**, not all of the protocol is our own code. The Aave v3 code has **settings** that the **admin** can **access**, though. **This chapter clarifies** what we can and can't do, and **how safe we are** in case of malevolent access. [PreviousProtocol Risks & Mitigations](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/protocol-risks-and-mitigations) [NextHuman Security](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/admin-access/human-security) Last updated 5 days ago --- # Contracts (Coming Soon) | BetterBank [Pulse (Coming Soon)](https://betterbanks-organization.gitbook.io/better-bank/contracts-coming-soon/pulse-coming-soon) [Arbitrum (Coming Soon)](https://betterbanks-organization.gitbook.io/better-bank/contracts-coming-soon/arbitrum-coming-soon) [PreviousConnect with BetterBank](https://betterbanks-organization.gitbook.io/better-bank/other-info/connect-with-betterbank) [NextPulse (Coming Soon)](https://betterbanks-organization.gitbook.io/better-bank/contracts-coming-soon/pulse-coming-soon) --- # Audit (Coming Soon) | BetterBank [PreviousArbitrum (Coming Soon)](https://betterbanks-organization.gitbook.io/better-bank/contracts-coming-soon/arbitrum-coming-soon) --- # Pulse (Coming Soon) | BetterBank [PreviousContracts (Coming Soon)](https://betterbanks-organization.gitbook.io/better-bank/contracts-coming-soon) [NextArbitrum (Coming Soon)](https://betterbanks-organization.gitbook.io/better-bank/contracts-coming-soon/arbitrum-coming-soon) --- # Connect with BetterBank | BetterBank [PreviousSeigniorage Code](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/admin-access/seigniorage-code) [NextContracts (Coming Soon)](https://betterbanks-organization.gitbook.io/better-bank/contracts-coming-soon) Last updated 2 months ago **🌐 Website -** **🐦 Twitter (X) -** **💬 Discord -** 💬 Telegram Announcements – 💬 Telegram Official Chat - 📖 **Access detailed documentation** – [@BetterBank\_io](https://x.com/BetterBank_io) [Welcome to BetterBank Discord](https://discord.gg/YnpQpuaS7q) [BetterBank TG Announcements](https://t.me/betterbankofficial) [BetterBank TG Portal](https://t.me/better_bank) [BetterBank Official Documents](https://betterbanks-organization.gitbook.io/better-bank/) [betterbank.io](mailto:betterbankbb@gmail.com) ---