BarnBridge · interactive mechanism simulation

Deposits split into a senior tranche (fixed-rate bond NFTs) and a junior tranche (variable jTokens) over a lending pool. Each epoch's variable yield is paid senior-first; the junior side absorbs any shortfall from its own cushion, or keeps the leveraged excess. Edit the parameters to see how yield compression breaks the model.
SEC halt (Jul 2023): pools frozen — SMART Yield bonds ruled unregistered securities, DAO settles for $1.7M+.
Depositors stablecoin savers Senior pool (sBONDs) ERC-721 · fixed 4.0% $0 locked · 0 bonds Junior pool (jTokens) ERC-20 · underwrites seniors cushion: $0 Compound / Aave pool variable APY: 8.0% underlying lending market Yield waterfall senior-first split epoch 0 Senior fixed payout $0 paid to date Junior variable payout $0 net to date
Epochs simulated
0
Senior TVL
$0 0 bonds
Junior cushion
$0
Junior effective APY (this epoch)
0.0%
Status
Healthy
Parameters — edit me
8.0%
4.0%
60%
0.6/s
Controls

Illustrative simulation. Reflects the researched SMART Yield mechanism (deposits tranched into fixed-rate senior bond NFTs and variable junior tokens over a Compound/Aave-style pool, with the junior side underwriting the senior guarantee), but epoch timing and dollar amounts are simplified for visualization — not live onchain data. The core tranching logic never suffered a solvency exploit; BarnBridge's actual end came from an SEC enforcement action against SMART Yield as an unregistered security, which the "Trigger SEC halt" button illustrates. Part of The Onchain Experiment Atlas.