CAMPFIRE: A decentralized token camping on the Binance Smart Chain.

3 min readMar 30, 2021

Campfire protocol

Campfire is a modern growing auto compounding yield DeFi. A limitless aggregator protocol for suppliers and insurers in the crypto-space.

📈Why did we build CAMPFIRE?

As Binance Smart Chain (BSC) becomes more popular, we see a gap in applications offered on BSC compared to other chains such as Ethereum. One of the key missing pieces is an on-chain leverage protocol!

Pioneered by Compound during the DeFi Winter, yield farming has become a popular way for projects to bootstrap their liquidity and acquire new users. Campfire protocol seeks to expand on the success of these trailblazers by providing value to the BSC community through leveraged yield farming.

We believe Campfire protocol will give lenders and borrowers a chance to enhance their portfolio— which so far has only been a whale game on Ethereum where the gas fee is just too damn high!

💻Our Protocol:

As a user, you can participate in the campfire protocol in three different ways:

💵 Creditor: Campfire allows you to earn income on your base assets by depositing them into our vaults. These assets will then be offered to yield pledgers for leveraging up their positions.‌

🌾 Yield pledgers: As a pledger, you can earn a higher yield by opening a leveraged position on Campfire protocol. Of course, this comes with bigger risks: liquidation, impermanent loss, etc.‌

🚨 Scouts: Monitoring the pool for underwater positions and liquidating them when they become too risky. (Bots only)‌

At launch, we will support two base assets — BNB and BUSD — and integrate our leveraged farming with PancakeSwap.

In this example below, we show how each participant works together in our ecosystem:

Alice the creditor deposits her BNB into our deposit vault; her asset becomes available for a yield farmer to borrow; she earns interest for providing this liquidity
Bob the yield pledger wants to open a leveraged yield farming position on the BTC/BNB pair; he borrows BNB from the vault and enjoys higher yield farming rewards. Campfire Finance’s smart contract takes care of all the mechanics behind the scenes — optimally switching assets to the right ratio, providing liquidity to the pool, and staking LP for Pancake Rewards
Erin the liquidator bot monitors the health of each leveraged position, and when it goes beyond designated parameters, she helps liquidate the position, making sure lenders such as Alice do not lose their capital. For this service, she takes a 5% reward from the liquidated position. At campfire, we also have an in-house bot for this which uses 100% of this fee for a buyback and burn of the CAMP token. So even if you’re unfortunate and have your position liquidated, if you’re an CAMPFIRE holder, you can feel relieved knowing your token is going up in value as a result.
Carlos the bounty hunter bot monitors the amount of rewards accrued in each pool and helps reinvest it back, compounding returns for all farmers. For this service, he takes 3% of the reward pool, which goes to the dev fund to pay for operations. (In-house bot only)