Can the Bella Protocol (BEL) make money from Crypto Banking?

The Bella Protocol (BEL) is yet another attempt to bring banking and wealth management to the blockchain.

Bella offers a suite of decentralized finance (DeFi) products designed to make it easy for ordinary people to deposit crypto and harvest yields. For example, the Bella Flex Savings v2 compounds investments automatically by reinvesting gas fees. They claim this lowers costs.

They call Bella Flex Savings v2 a trusted smart mining product and a smart pool that routes funds to DeFi protocols. Bella Flex Savings combines mining and yield farming.

Bella Products

Interestingly, documents compare Bella Savings v2 to a hedge fund. They claim users can deposit stablecoins and supported tokens in the Bella Savings v2 pool and automatically earn yields. Plus, they claim the BEL liquidity mining program can earn returns than the market.

Bella Savings v2 features include optimized portfolio strategies, gas fee savers, auto reinvestment, a compounded return, higher returns for staking during the vesting period, low management fees, token burn, a yield farming incentives program, and a reward booster. Bella’s documents make unproven claims about a 145% APY which I do not believe.

On 29 May 2022, Bella’s website admitted they had ceased offering rewards for BEL liquidity mining.

Notably, they claim to have allocated 500,000 Bel (worth over $1.3 million) to the Yield Farming incentives program. They hope to offer an APY that is higher than the industry standard.

Bella Yield Farming

In Yield Farming Bella users will stake the interest-bearing b Token. Each b Token represents ownership of the native token. They will reward those who stake assets in the Bella Flex Savings v2 pool with b Tokens.

They plan to create liquidity pools for Tether (USDT), USD Coin (USDC), Abra, and Wrapped Bitcoin (WBTC). There will be b Tokens for each of those pools.

The Bella Locker offers a fixed annual percentage yield (APY) that helps investors avoid market fluctuations and trading losses. They claim there is no minimum requirement to participate in Bella Locker. Instead, anybody can stake any amount of Bel and earn rewards.

They hope to launch multi-wallet support for the Bella Flex Savings multi-wallet in the second quarter of 2022. They plan to launch other initiatives in the third quarter of 2022 and upgrade the Bella Brand in the fourth quarter of 2022.  

Bella Apps

A Bella Locker app is apparently available now at the Bella website. On 29 May 2022, the Bella Locker App was promising an 18% APY on BEL in 30 days, a 24% APY on BEL in 60 days, a 36% APY on BEL in 120 days, and a 50% APY on BEL in 360 days.

The Bella App was allowing liquidity farming on USDT, USDC, ARPA, WBTC, Huobi BTC (HBTC), and Binance USD (BUSD) on 29 May 2022.

Hence it appears that some of Bella’s apps are up and running and offering DeFi services. Hence, the Bella Protocol (BEL) is doing better than many other DeFi protocols.

What Value Does the Bella Protocol (BEL) Offer?

Mr. Market thinks the Bella Protocol (BEL) offers some value. For instance, CoinMarketCap named the Bella Protocol the second most trending cryptocurrency on 30 May 2022.

In contrast, CoinMarketCap named the Bella Protocol the 460th largest cryptocurrency with a Coin Price of 87.71₵ on 31 May 2022. CoinMarket Cap gave the Bella Protocol (BEL) a Market Capitalization of $42.101 million, a Fully Diluted Market Cap of $877.678 million, a 24-Hour Market Volume of $142.627 million and a Total Value Locked of $16.527 million on 31 May 2022.

They based those numbers on a Circulating Supply of 48 million BEL, a Maximum Supply of 100 million BEL, and a Total Supply of 100 million BEL.

Conversely, CoinBase gave the Bella Protocol a Coin Price of 88₵ a $42 million Market Cap, and a $142.8 million 24-Hour Market Volume on May 2022. They based those numbers on a Circulating Supply of 48 million BEL. CoinBase gives BEL an all-time high Coin Price of $10.03.

I think the Bella Protocol (BEL) is a better-than average DeFi protocol because it appears to deliver some DeFi services. If you are seeking a smaller DeFi protocol that could make money, Bella is worth examining.