{"id":"burrow-finance","title":"Burrow Finance","content":"**Burrow Finance** (now rebranded as Rhea Finance) was a decentralized, non-custodial interest rates platform on the [NEAR](https://iq.wiki/wiki/near-protocol) [blockchain](https://iq.wiki/wiki/blockchain), allowing users to supply assets to earn interest and borrow against them for [liquidity](https://iq.wiki/wiki/pol-protocol-owned-liquidity).\n\nIn February 2025, a merger between Burrow and [Ref Finance](https://iq.wiki/wiki/ref-finance) was established to form [Rhea Finance](https://iq.wiki/wiki/rhea-finance). [\\[16\\]](#cite-id-dkvvv1ojJo) [\\[17\\]](#cite-id-Z4XXS0KAKM)\n\n## Overview\n\nBurrow was a decentralized, non-custodial, pool-based interest rates platform where users can supply assets to earn interest and borrow against them to unlock [liquidity](https://iq.wiki/wiki/pol-protocol-owned-liquidity), similar to [Aave](https://iq.wiki/wiki/aave) and [Compound](https://iq.wiki/wiki/compound). It operates natively on the [NEAR](https://iq.wiki/wiki/near-protocol) [blockchain](https://iq.wiki/wiki/blockchain), a layer 1 [proof-of-stake](https://iq.wiki/wiki/proof-of-stake), [sharded](https://iq.wiki/wiki/sharding) [blockchain](https://iq.wiki/wiki/blockchain) with a WebAssembly runtime, and its [smart contracts](https://iq.wiki/wiki/smart-contract) are written in Rust. Burrow focused on unlocking [liquidity](https://iq.wiki/wiki/pol-protocol-owned-liquidity) for interest-bearing assets, especially layer 1 [staking](https://iq.wiki/wiki/staking) derivatives like stNEAR and [stETH](https://iq.wiki/wiki/lido-staked-ethereum-steth). Users can deposit stNEAR as collateral to borrow more [NEAR](https://iq.wiki/wiki/near-token) for a leveraged [staking](https://iq.wiki/wiki/staking) position or borrow a [stablecoin](https://iq.wiki/wiki/stablecoin) to create a self-repaying position. [\\[2\\]](#cite-id-qfazka9wd4s)\n\n### Burrow V2\n\nIn July 2024, Burrow Finance revealed a V2 update that introduced margin trading, allowing users to take leveraged positions and supports using Liquidity Provider (LP) tokens as collateral. These features aim to broaden DeFi activities within the NEAR ecosystem. The protocol leverages its native asset, $BRRR, and is working on cross-chain functionalities through Chain Abstraction for interaction with other blockchain networks. Burrow's lending and borrowing services complement other DeFi protocols on NEAR, enhancing the range of financial tools available to users.\n\n## Burrow's Merger with Ref Finance to form Rhea Finance\n\nRef Finance and Burrow Finance merged in February 2025 to create the next generation of chain-abstracted liquidity platforms, Rhea Finance. [\\[17\\]](#cite-id-Z4XXS0KAKM)\n\nThis was said to be done for the betterment of [decentralized finance](https://iq.wiki/wiki/defi) as a whole. The two sides came together to combat the challenge of fragmentation. [\\[18\\]](#cite-id-D4VCyMMKaw)\n\nThe industry currently requires users to navigate different chains, platforms, and wallets to access liquidation and optimize their yield strategies. However, Ref and Burrow created [Rhea Finance](https://iq.wiki/wiki/rhea-finance) to solve this problem. [\\[17\\]](#cite-id-Z4XXS0KAKM) [\\[18\\]](#cite-id-D4VCyMMKaw)\n\n## Features\n\n### Health Factor\n\nUsers can borrow against their supplied assets, with all positions requiring over-collateralization. The Health Factor represents the borrowed assets' combined [collateral](https://iq.wiki/wiki/collateral) ratios, indicating a position's risk. Computed per account, not per asset, the Health Factor considers each asset's [collateral](https://iq.wiki/wiki/collateral) factor, which reflects its price stability. A higher [collateral](https://iq.wiki/wiki/collateral) factor indicates greater expected price stability. The account is in good standing if the Health Factor exceeds 100% and cannot be liquidated. If it falls below 100%, the account can be partially liquidated and cannot borrow more without repaying existing assets or providing additional [collateral](https://iq.wiki/wiki/collateral). [\\[4\\]](#cite-id-fq8lpbawphj)\n\n### Liquidations\n\nA liquidation is triggered when an account's Health Factor drops below 100%, indicating insufficient [collateral](https://iq.wiki/wiki/collateral) value to cover the debt. This can occur if the collateral decreases or the borrowed debt increases. Burrow's liquidation mechanism encourages competition among liquidators by offering variable discounts and liquidation sizes, minimizing losses for unhealthy accounts. [\\[5\\]](#cite-id-v86iq2jxiy9)\n\nLiquidations follow three basic rules: the initial Health Factor of the liquidated accounts must be below 100%; the discounted sum of the taken [collateral](https://iq.wiki/wiki/collateral) must be less than the sum of repaid assets; and the final Health Factor of the liquidated accounts must remain below 100%. These rules ensure that only unhealthy accounts are liquidated, prevent taking excessive [collateral](https://iq.wiki/wiki/collateral), and restrict liquidators from repaying too much of the borrowed assets, maintaining the Health Factor close to 100%. [\\[5\\]](#cite-id-v86iq2jxiy9)\n\n### Price Oracle\n\nBurrow uses a [MakerDAO](https://iq.wiki/wiki/makerdao)-inspired whitelisted [oracle](https://iq.wiki/wiki/oracle), currently operated by five independent operators and designed to be easily extended into a decentralized, self-sustainable network. For a price to be reported on-chain, most [oracles](https://iq.wiki/wiki/oracle) must propose the current price within a tight range, ensuring its relevance is less than one minute. The [DAO](https://iq.wiki/wiki/dao) plans to consider adding other robust [Oracle](https://iq.wiki/wiki/oracle) solutions supported on [NEAR](https://iq.wiki/wiki/near-protocol), such as Flux, in the future. [\\[6\\]](#cite-id-xurlblcycx)\n\n#### Pyth Oracle\n\nThe [Pyth Network](https://iq.wiki/wiki/pyth-network) is a first-party financial data [oracle](https://iq.wiki/wiki/oracle) network that securely delivers low-latency price data for various assets to [blockchains](https://iq.wiki/wiki/blockchain). The protocol aggregates data providers' inputs to produce a single aggregate price and confidence interval every 400ms for each price feed, managed on an application-specific [blockchain](https://iq.wiki/wiki/blockchain) called Pythnet. It features a novel Pull [Oracle](https://iq.wiki/wiki/oracle) architecture, allowing data users to request price updates from the [Pyth](https://iq.wiki/wiki/pyth-network) protocol as needed. [\\[6\\]](#cite-id-xurlblcycx)\n\n### Net Liquidity Farming\n\nOn July 12th, Burrow transitioned from a “total deposits farming” model to a “net [liquidity](https://iq.wiki/wiki/pol-protocol-owned-liquidity) farming” model. Under the new system, global rewards were distributed based on “net [liquidity](https://iq.wiki/wiki/pol-protocol-owned-liquidity),” the amount deposited minus borrowed assets, rather than total deposits. This change impacted global rewards like $USN but not pool-specific rewards such as [$liNEAR](https://iq.wiki/wiki/linear-finance) or $META, which continued as before. Users needed to review the updates to understand the potential effects on their rewards. Net [liquidity](https://iq.wiki/wiki/pol-protocol-owned-liquidity) farming aimed to optimize the use of Burrow’s treasury and align rewards with actual usage. The Burrow [DAO](https://iq.wiki/wiki/dao) adjusted the reward models, including boosting global rewards or adding new assets based on market conditions and user behavior. [\\[7\\]](#cite-id-m2ttpeujigr)\n\n![1\\_fz8Nmpj0idlT3PMRkD-xgw.webp](https://ipfs.everipedia.org/ipfs/QmVUNbgshs56XD7Ux9W3Bm4qgTj75QRmZ6LRN5UubfUdJG)\n\n## Products\n\n### Supplying\n\nUsers can supply assets to the protocol and immediately start earning passive interest, which varies based on the asset's utilization rate. Withdrawals are allowed anytime, provided the asset's utilization rate remains below 100% post-withdrawal. If the withdrawal raises the utilization rate to 100%, it will be temporarily unavailable, creating an expensive situation for borrowers and a lucrative one for suppliers. Users can designate a percentage of their supplied assets as [collateral](https://iq.wiki/wiki/collateral), subject to liquidation, while non-[collateral](https://iq.wiki/wiki/collateral) assets will continue to accrue interest. This designation can be managed at any time. [\\[8\\]](#cite-id-fult1i3rnm6)\n\n### Borrowing\n\nUsers can borrow against their supplied assets on Burrow, with all positions requiring over-collateralization. If the value of a user's [collateral](https://iq.wiki/wiki/collateral) falls below the minimum [collateral ratio](https://iq.wiki/wiki/collateralization-ratio), their [collateral](https://iq.wiki/wiki/collateral) will be liquidated to cover the debt. Each asset has a unique minimum [collateral ratio](https://iq.wiki/wiki/collateralization-ratio) due to varying risk levels, which can be referenced on the platform. The overall risk of an account is indicated by the Health Factor, reflecting the combined collateral ratios of the borrowed assets. A Health Factor above 100% means the account is safe from liquidation, while a factor below 100% indicates the account can be partially liquidated and cannot borrow more without repaying some debt or adding more [collateral](https://iq.wiki/wiki/collateral). [\\[9\\]](#cite-id-kskpkw4ufbh)\n\n### Assets\n\nBurrow supports 13 assets for supplying and 12 assets for borrowing. The Burrow [DAO](https://iq.wiki/wiki/dao) votes to enable new assets deemed safe to list, focusing on interest-bearing assets, including L1 [staking](https://iq.wiki/wiki/staking) derivatives like Staked [NEAR](https://iq.wiki/wiki/near-token). Prospective assets must be trustless, sufficiently liquid on [NEAR](https://iq.wiki/wiki/near-protocol) [DEXs](https://iq.wiki/wiki/decentralized-exchange) and other markets, and broadly distributed. Current supported assets include: [\\[10\\]](#cite-id-olfk1bxkk0g)\n\n* BRRR\n* [ETH](https://iq.wiki/wiki/ethereum)\n* [DAI](https://iq.wiki/wiki/dai)\n* [USDT](https://iq.wiki/wiki/tether)\n* [USDC](https://iq.wiki/wiki/usdc)\n* USN\n* wNEAR\n* STNEAR\n* [LINEAR](https://iq.wiki/wiki/linear-finance)\n* NearX\n* [WBTC](https://iq.wiki/wiki/wrapped-bitcoin-wbtc)\n* Aurora\n* [WOO](https://iq.wiki/wiki/woo-network)\n\n### APY\n\n[Annual Percentage Yield (APY)](https://iq.wiki/wiki/annual-percentage-yield-apy) is the compounding interest on a deposit or loan after a year, calculated based on the initial principal. Each Burrow asset has its supply and demand market, with its evolving [APY](https://iq.wiki/wiki/annual-percentage-yield-apy). Supply [APY](https://iq.wiki/wiki/annual-percentage-yield-apy) is the current interest [APY](https://iq.wiki/wiki/annual-percentage-yield-apy) of the asset when supplied, and borrow [APY](https://iq.wiki/wiki/annual-percentage-yield-apy) is the current interest [APY](https://iq.wiki/wiki/annual-percentage-yield-apy) of the asset when borrowed. Each asset has different parameters that determine its actual yield at different points. Users may receive [liquidity mining](https://iq.wiki/wiki/liquidity-mining) rewards like BRRR, USN, or other tokens when supplying or borrowing, potentially increasing the actual [APY](https://iq.wiki/wiki/annual-percentage-yield-apy). [Liquidity mining](https://iq.wiki/wiki/liquidity-mining) rewards are assessed and distributed on two levels: [\\[11\\]](#cite-id-8rt74vptku4)\n\n1. Pool-specific rewards: Some asset pools on Burrow offer additional rewards on top of the base [APY](https://iq.wiki/wiki/annual-percentage-yield-apy) for suppliers and/or borrowers.\n2. Net [liquidity](https://iq.wiki/wiki/pol-protocol-owned-liquidity) rewards: Rewards are based on net [liquidity](https://iq.wiki/wiki/pol-protocol-owned-liquidity) across all asset pools. For example, if a user supplies $100 worth of [USDC](https://iq.wiki/wiki/usdc) and borrows $50 worth of wNEAR, their net [liquidity](https://iq.wiki/wiki/pol-protocol-owned-liquidity) is $50, and they earn rewards based on that amount.\n\nBurrow users can earn yields from base [APY](https://iq.wiki/wiki/annual-percentage-yield-apy), pool-specific, and net-[liquidity](https://iq.wiki/wiki/pol-protocol-owned-liquidity) rewards. [Liquidity mining](https://iq.wiki/wiki/liquidity-mining) rewards are distributed among participants based on their number of shares. BRRR token holders can participate in the BRRR [staking](https://iq.wiki/wiki/staking) program to boost their shares and receive more reward tokens. [\\[11\\]](#cite-id-8rt74vptku4)\n\n## Burrow DAO\n\nBurrow is governed by the Burrow [DAO](https://iq.wiki/wiki/dao), using the SputnikDAO/AstroDAO framework. This system allows for flexible role creation with encoded responsibilities and execution of any transactions supported by the [NEAR](https://iq.wiki/wiki/near-protocol) [blockchain](https://iq.wiki/wiki/blockchain). The [DAO](https://iq.wiki/wiki/dao) manages the treasury, reserve funds, onboarding new assets, and managing asset risks through various parameters. [\\[12\\]](#cite-id-a4giyio3xp)\n\nThe [DAO](https://iq.wiki/wiki/dao) has two roles: the Council and the Community Board. The Council, consisting of 5 members, can submit and vote on proposals. The Community Board, with 15 members, can vote on proposals. The Council submits proposals, and the Community Board votes to approve or reject them. Sometimes, the Council will submit proposals for the Community Board or the broader Burrow community. If an approved proposal requires complex actions involving multiple transactions, the Council will create and approve proposals to execute those actions. [\\[12\\]](#cite-id-a4giyio3xp)\n\nIn the future, once a substantial portion of BRRR tokens are distributed, the [DAO](https://iq.wiki/wiki/dao) will add the Token Holder role, which is expected to replace the Community Board for approving or rejecting proposals. Token Holders can also add and remove Council and Community Board members; additional roles with various permissions can be created. [\\[12\\]](#cite-id-a4giyio3xp)\n\n## BRRR Token\n\nBRRR is Burrow's native [governance token](https://iq.wiki/wiki/governance-tokens). Most of the token supply will be distributed to active users and community members. For the first 4 weeks, BRRR will be non-transferrable from the Burrow app until the [DAO](https://iq.wiki/wiki/dao) votes to allow transfers. This initial period helps Burrow align with early users and supporters. BRRR holders can participate in the BRRR [staking](https://iq.wiki/wiki/staking) program to stake BRRR and receive xBRRR tokens. [\\[13\\]](#cite-id-8s18g3z31m9)\n\n### Tokenomics\n\n![BRRR.jpg](https://ipfs.everipedia.org/ipfs/QmVuZ3rH9yCbY4yBcYzg8XW5F3TiMdJdc6fhpYJj5uMoVq)\n\nBRRR has a total supply of 1B tokens and has the following distribution: [\\[13\\]](#cite-id-8s18g3z31m9)\n\n* **Community**: 50%\n* **DAO Treasury**: 20%\n* **Core Team**: 20%\n* **Strategic Investors**: 10%\n\nUp to 6% of the BRRR supply (60,000,000 BRRR) will be distributed to the Burrow community in the first three months after launch. [\\[13\\]](#cite-id-8s18g3z31m9)\n\n### Staking\n\nBRRR token holders can participate in a staking program similar to Curve's ve-token model. By [staking](https://iq.wiki/wiki/staking) BRRR tokens, users receive xBRRR tokens, which offer boosted rewards for supplying and borrowing on Burrow and allow participation in [DAO](https://iq.wiki/wiki/dao) governance through voting. The [staking](https://iq.wiki/wiki/staking) period ranges from 30 to 90 days, with longer [staking](https://iq.wiki/wiki/staking) periods yielding more xBRRR. xBRRR tokens enhance [liquidity mining](https://iq.wiki/wiki/liquidity-mining) rewards and can be used to boost shares in asset pools. At the end of the lockup period, xBRRR tokens are [burned](https://iq.wiki/wiki/token-burn), and users receive their [staked](https://iq.wiki/wiki/staking) BRRR back. xBRRR tokens are non-transferable and remain within users' accounts. [\\[14\\]](#cite-id-rt7br9vq6g)[\\[15\\]](#cite-id-o4vc78secr)\n\n## Partnerships\n\n* [Near](https://iq.wiki/wiki/near-protocol)\n* BlockSec\n* SlowMist\n* Immunefi\n* [Pyth](https://iq.wiki/wiki/pyth-network)\n* [Ref Finance](https://iq.wiki/wiki/ref-finance)\n* [OKX](https://iq.wiki/wiki/okx)\n* [Frax](https://iq.wiki/wiki/frax-finance)\n* Coin Sixty Eight\n* Sweat\n* PikeSpeak\n* Rainbow [\\[1\\]](#cite-id-ssh4m325ywg)","summary":"Burrow Finance merged with Ref Finance to form a new DeFi protocol called Rhea Finance","images":[{"id":"QmeN2Uf3GxvAGx6ciysqixBfUeVv9h4YFVnZaQN3xCsVtv","type":"image/jpeg, image/png"}],"categories":[{"id":"defi","title":"Decentralized Finance"}],"tags":[{"id":"Organizations"},{"id":"Protocols"}],"media":[{"id":"QmVUNbgshs56XD7Ux9W3Bm4qgTj75QRmZ6LRN5UubfUdJG","size":"0.04","name":"1_fz8Nmpj0idlT3PMRkD-xgw.webp","type":"GALLERY","source":"IPFS_IMG"},{"id":"QmVuZ3rH9yCbY4yBcYzg8XW5F3TiMdJdc6fhpYJj5uMoVq","size":"0.04","name":"BRRR.jpg","type":"GALLERY","source":"IPFS_IMG"},{"id":"https://www.youtube.com/watch?v=HBmgInLqG-w","size":0,"name":"HBmgInLqG-w","source":"YOUTUBE"}],"metadata":[{"id":"references","value":"[{\"id\":\"ssh4m325ywg\",\"url\":\"https://burrow.finance/\",\"description\":\"Burrow Finance website\",\"timestamp\":1722271026637},{\"id\":\"qfazka9wd4s\",\"url\":\"https://docs.burrow.finance/product-docs\",\"description\":\"Burrow Docs\",\"timestamp\":1722271450433},{\"id\":\"lzj5wb4cxpp\",\"url\":\"https://burrowfinance.medium.com/burrow-v2-leading-the-near-protocol-defi-ecosystem-ea5617788d69?source=user_profile---------1----------------------------\",\"description\":\"Burrow V2 | Medium\",\"timestamp\":1722271493120},{\"id\":\"fq8lpbawphj\",\"url\":\"https://docs.burrow.finance/product-docs/how-burrow-works/health-factor\",\"description\":\"Health Factor | Burrow Docs\",\"timestamp\":1722271525017},{\"id\":\"v86iq2jxiy9\",\"url\":\"https://docs.burrow.finance/product-docs/how-burrow-works/liquidations\",\"description\":\"Liquidations | Burrow Docs\",\"timestamp\":1722271553673},{\"id\":\"xurlblcycx\",\"url\":\"https://docs.burrow.finance/product-docs/how-burrow-works/oracle\",\"description\":\"Oracle | Burrow Docs\",\"timestamp\":1722271588382},{\"id\":\"m2ttpeujigr\",\"url\":\"https://burrowfinance.medium.com/introducing-net-liquidity-farming-on-burrow-cbacbfdebd97\",\"description\":\"Net Liquidity Farming | Medium\",\"timestamp\":1722271660823},{\"id\":\"fult1i3rnm6\",\"url\":\"https://docs.burrow.finance/product-docs/using-burrow/supplying\",\"description\":\"Supplying | Burrow Docs\",\"timestamp\":1722271704439},{\"id\":\"kskpkw4ufbh\",\"url\":\"https://docs.burrow.finance/product-docs/using-burrow/borrowing\",\"description\":\"Borrowing | Burrow Docs\",\"timestamp\":1722271728035},{\"id\":\"olfk1bxkk0g\",\"url\":\"https://docs.burrow.finance/product-docs/using-burrow/assets\",\"description\":\"Assets | Burrow Docs\",\"timestamp\":1722271757035},{\"id\":\"8rt74vptku4\",\"url\":\"https://docs.burrow.finance/product-docs/using-burrow/apy\",\"description\":\"APY | Burrow Docs\",\"timestamp\":1722271784494},{\"id\":\"a4giyio3xp\",\"url\":\"https://docs.burrow.finance/product-docs/how-burrow-works/governance\",\"description\":\"Governance | Burrow Docs\",\"timestamp\":1722271824395},{\"id\":\"8s18g3z31m9\",\"url\":\"https://docs.burrow.finance/product-docs/tokenomics/brrr-token\",\"description\":\"BRRR Token | Burrow Docs\",\"timestamp\":1722271883385},{\"id\":\"rt7br9vq6g\",\"url\":\"https://docs.burrow.finance/product-docs/using-burrow/staking\",\"description\":\"Staking | Burrow Docs\",\"timestamp\":1722271949122},{\"id\":\"o4vc78secr\",\"url\":\"https://docs.burrow.finance/product-docs/tokenomics/brrr-staking\",\"description\":\"BRRR Staking | Burrow Docs\",\"timestamp\":1722271960894},{\"id\":\"dkvvv1ojJo\",\"description\":\"Rhea X profile\",\"timestamp\":1749147122850,\"url\":\"https://x.com/rhea_finance\"},{\"id\":\"Z4XXS0KAKM\",\"description\":\"Rebrand to Rhea finance\",\"timestamp\":1749147142472,\"url\":\"https://rhea-finance.medium.com/ref-finance-burrow-finance-merge-to-launch-rhea-finance-the-chain-abstracted-liquidity-solution-82a17a2ae662\"},{\"id\":\"D4VCyMMKaw\",\"description\":\"ref & burrow to rhea\",\"timestamp\":1749147308056,\"url\":\"https://watcher.guru/news/ref-burrow-merge-to-launch-rhea-finance-a-next-gen-chain-abstracted-liquidity-solution\"}]"},{"id":"website","value":"https://www.rhea.finance/"},{"id":"twitter_profile","value":"https://x.com/rhea_finance"},{"id":"medium_profile","value":"https://rhea-finance.medium.com/"},{"id":"previous_cid","value":"\"https://ipfs.everipedia.org/ipfs/Qmew9CzXsxJ56ZT1hvt2hgS996W4T4LKFuc9b6SsH9Fd3J\""},{"id":"commit-message","value":"\"Publishing updates on Burrow Finance merger with Ref Finance to form Rhea Finance\""},{"id":"previous_cid","value":"QmNfqKa8axTn3Ck8WnNGADRNrYqbDoJssWxYQdragxP1ZQ"}],"events":[{"id":"yJvp4ShvoF","date":"2021-10","title":"Burrow","type":"CREATED","description":"Burrow 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