What is the Bella Protocol?

The Bella Protocol is a decentralized finance (DeFi) platform that aims to simplify liquidity and yield farming for crypto participants. The protocol aims to increase DeFi adoption by creating one-click products leveraging layer two projects like zkSync.

It provides a suite of products, such as the flex saving feature that operates as a smart liquidity pool. Another is the LP farm, which leverages gas-efficient multichain layer two projects. The protocol also has the Bella tuner built for developers, traders, and liquidity providers.

A primary aim of the project is to simplify user experience while conducting wealth management activities.

History of the Bella Protocol

The project was founded in 2020 by the Arpa team. The co-founders include Felix Xu and Yemu Xu. Felix Xu is the CEO of Bella Protocol and graduated from New York University with a finance and information systems degree. Yemu Xu is a serial entrepreneur with years of experience as an analyst and consultant for various industries.

The initial idea for the Bella Protocol was birthed in 2019 with detailed DeFi product research. The team was formed at the beginning of 2020 and comprised employees experienced in blockchain, finance, and product development.

By the end of 2020, the prototype and global community survey were launched alongside the BEL native token. The platform allowed users to conduct liquidity mining and airdrop activities in the ARPA ecosystem.

Bella Flex savings, One-click V1, Bella lending V1, and the Bella app were launched to grow the Bella user base. The DeFi Robo-advisor V1 was also launched to assist users in asset management. Soon, the project aims to launch a Bella stablecoin.

Core Components

One-click Automation

The one-click concept was created to allow the Bella Protocol to streamline the DeFi experience for users of all levels. Traditionally, participating in DeFi activities involves navigating numerous protocols and interfaces, managing gas fees, and executing numerous strategies.

One-click automation eliminates the complexities, simplifying the Bella experience into a single action. This is done by condensing information and automating tasks that would be executed once the user deposits funds to the platform.

This concept was borrowed from the Web2 experience of one-click ordering systems. It supports the original aim of the Bella Protocol, that is, replicating the familiar Web2 experience with Web3 can improve DeFi adoption.

This ensures the Bella platform automates the deployment and reinvestment of user funds into high-yield strategies.

Multi-chain Infrastructure

The Bella Protocol is designed to interact with and integrate other layer two protocols, like zkSync, to expand its access to liquidity. The initial integration with iZiswap was the first major step in achieving its multi-chain projections.

After that, the project collaborated with Manta Network, a ZK rollup. The collaboration gave Bella access to scalability at lower transaction fees and expanded the liquidity provision for both ecosystems.

Subsequently, the project integrated the Mantle network and the AlphaNet project. This allowed Bella to provide AI-driven trading capabilities, enhancing the user experience with advanced trading strategies and rewards. The multi-chain integrations give users of the Bella Protocol the flexibility to choose and access the network that best suits their needs.

Uniswap V3

The Bella project uses the Uniswap V3 as a powerful simulator that allows DeFi strategists to test and refine their strategies. The simulator replicates Uniswap’s V3 pools in a safe environment with demo funds.

Unlike traditional testing methods that involve backtesting, the V3 simulator can simulate thousands of historical events in seconds. This allows users to rapidly iterate and refine strategies and create instances in Bella tools like the Bella Tuner.

The simulator allows testing different price ranges, fee tiers, and market conditions.

Features of the Bella Protocol: Flex Savings, Liquidity Providers Farm and Bella Tuner

Bella Flex Savings

Source: Bella Protocol Website

The Flex saving feature of the Bella ecosystem is a pool of user assets that it invests on behalf of the user. Its features also allow it to automatically reinvest rewards and returns from activities such as yield farming.

To utilize this feature, Users deposit their assets into the pool, which bears interest back into the pool, compounding returns over time. The platform provides benefits such as gas usage, passive income generation, and low fees. It’s an optimal choice for users seeking hassle-free yield optimization.

Bella Liquidity Provider - LP Farm

Source: Bella Protocol Website

The Bella liquidity provider (LP) farms leverage layer two technologies like zkSync to provide prime yield farming opportunities. Users stake their tokens in Bella’s liquidity pools to take advantage of these farms and receive LP tokens.

These LP tokens represent the user’s share of the pool, which determines the share of rewards earned from the pool.

The LP farming feature is designed to support multiple chains, which gives users access to better fees and reward options. Users could receive multiple tokens from projects that partner with the Bella project.

Bella Tuner

Source: Bella Protocol Website

The Bella Tuner is a Uniswap V3 simulator for developers, traders, and users. It allows for data-driven strategy backtesting on a day-to-day basis. The simulator is run in an independent environment while retaining the needed smart contract characteristics of the main Uniswap V3.

The tuner consists of two abstraction layers. The first is the top-level layer that focuses on the SimulatorClient. This layer is used by less experienced users and wraps up the underlying logic, data, and processing sections to provide a user-friendly interface.

The second level is the low-level layer, allowing more experienced users more flexibility. It allows the user to interact with the underlying components to give more granular control over the simulation scenario.

What is the BEL Token?

The BEL token is the native token of the Bella Protocol, used for staking on the protocol and collecting rewards. It has a total supply of 100 million BEL and a circulating supply of 65 million.

The tokenomics allocated 40% (40 million) to growing the user base, with 5% unlocked at the token generation event (TGE), with a vesting period of 49 months. 18% (18 million) is allocated to developing the ecosystem, with 44% unlocked at TGE, with a vesting period of 12 months.

15% (15 million) is allocated to the Bella team, with a cliff period of 2 months and a vesting period of 24 months. 10 % (10 million) is allocated to reward BEL stakers, with a cliff period of 2 months and a vesting period of 36 months.

6% (6 million) is reserved for private fund rounds, with a cliff period of 1 month and a vesting period of 9 months. 4% (4 million) is reserved in the Bella treasury, with a vesting period of 12 months. 5% (5 million) is sent to Binance Launchpool in two batches, with 50% unlocked at TGE.

2% (2 million) is reserved for rewarding the Bella community through airdrops, all unlocked at TGE.

Is BEL a Good Investment?

The BEL token is the native token of the Bella protocol. It allows holders to stake and earn rewards for participating in the protocol. Holders can also earn tokens for projects integrated with the Bella ecosystem.

The holders can participate in governance. This allows them to vote and make decisions in the project’s long-term development.

Risk Analysis

Advantages

The Bella protocol improves liquidity by providing pools and tools to interact with multiple chains and protocols. This allows its users to optimize their returns and improves the ecosystems of collaborated projects.

It also allows users, developers, and traders to fine-tune their strategies with a highly efficient Uniswap V3 tool. This simplifies the user’s experience, making DeFi more accessible and user-friendly. The Bella Protocol also addresses the issue of high transaction fees by introducing features like smart pools, which allow users to benefit from near-zero gas fees.

Disadvantages

The Bella protocol is a new project with a less-than-stellar track record of handling loss, risk, and security breach attempts. This reduces the trust level of conservative users and investors looking to engage in DeFi activities and limits the range of DeFi products and features available on the platform.

Challenges

As a recently developed project, Bella faces the challenge of balancing efficiency with the risk associated with DeFi platforms. To improve the ease of use while efficiently handling a growing audience, the project would be hard-pressed to ensure user funds are safe.

The project is also subject to the price volatility and regulatory issues surrounding the crypto space, which can make it unappealing to conservative users.

Competitive analysis

Like the Bella Protocol, Yearn Finance is a DeFi platform that uses automation to improve the earnings of users participating in yield farming. Both platforms leverage smart contracts to automate the process, but they target different users.

Yearn Finance is focused on users experienced in yield-generating strategies who are conversant with high risks. This allows those users to earn higher returns on their activities. The Bella protocol is focused on less experienced users onboarding into the DeFi space.

It utilizes lower-risk strategies, making it more suitable for users seeking a balance between safety and yield. It also focuses on a smaller selection of stablecoins, aiming to minimize the risk of price fluctuations to provide stable returns.

Yearn Finance supports a broader range of cryptocurrencies, allowing a broader portfolio regardless of the enhanced risks.

The Bella Protocol provides tools to experiment with strategies safely, allowing users to tune strategies without risk. Yearn allows users who are not technical to interact with DeFi less committedly than experienced traders.

How Can You Own BEL?

Users can follow a simple process to own BEL tokens and become a part of the Bella Protocol ecosystem.

Setup a Wallet

One way to own BEL tokens is to purchase them through an exchange. For this, the user must create a Gate.io account, complete the KYC process, and add funds to the account to buy the token.

Utilize the BEL Token

Once users have acquired BEL tokens, they can explore the Bella Protocol ecosystem by participating in yield farming and staking activities.

Take Action on BEL

Users can trade the BEL token here.