Cowrie Research

b-protocol-primary-sources-2026-05-14

4 min read

B.Protocol primary-source snapshot

Fetched: 2026-05-14 UTC

1) General docs page

Source: https://docs.bprotocol.org/info/general

Selected excerpts:

B.Protocol is a multi-chain user-based backstop liquidity protocol. It aims to make lending platforms more capital efficient and stable by handling liquidations in scale, using its Backstop Automated Market Maker (B.AMM) novel design.

With B.Protocol, users (aka Backstoppers) can deposit funds into backstop pools that will be used for the liquidation process, providing liquidation profits to the backstoppers.

While users’ deposited funds are sitting idle in the backstop pool they are deposited as supply liquidity on the lending market to gain interest rates and/or liquidity mining rewards.

Additional signals from the source:

  • This page is the clearest short statement of B.Protocol’s current self-description: user-funded liquidation backstop plus idle-capital reuse.
  • The docs explicitly position B.Protocol as infrastructure for lending platforms and long-tail markets, not only as a user yield strategy.
  • The most important architectural claim is that liquidation capital can stay productive until it is actually needed.

2) V1 documentation

Source: https://docs.bprotocol.org/technical-documentation/v1

Selected excerpts:

B.Protocol makes lending platforms more stable by incentivizing liquidity providers (keepers) to commit on liquidation of under collateralized loans and shift the miners extracted profits back to the users of the platform.

backstop liquidity providers (BLP) buy their right to liquidate under-collateralized loans and share their profits with the users of the platform.

The proposed mechanism eliminates the need for gas wars between liquidators, and thus transfers a big part of the protocol value back to the borrowers and lenders.

Additional signals from the source:

  • V1 is important even if deprecated because it exposes a distinct earlier liquidation-rights design: auctioned or franchised liquidation priority plus user profit-sharing.
  • The core control surface in V1 is not inventory management but liquidation-right allocation and MEV recapture.
  • This gives B.Protocol a useful historical split inside one project: first liquidation franchise markets, then user-funded backstop pools.

3) V2 / B.AMM docs page

Source: https://docs.bprotocol.org/technical-documentation/v2

Selected excerpts:

The Backstop Automated Market Maker (B.AMM) is an automatic market maker optimized for lending platform liquidations. It is a fully autonomous smart contract and can efficiently handle liquidations of big debt with smaller capital requirements.

The authors of the whitepaper describe a system where users provide liquidity that is used for liquidations … and after liquidation happens, an automatic re-balance process begins.

The rebalance is done by offering the collateral for sale according to the market price, which is determined according to a price oracle (e.g., Chainlink). An optional discount on market price is given according to the imbalance size … and the exact formula is an adaptation of Curve Finance stable swap invariant.

Additional signals from the source:

  • This is the strongest source for the actual B.AMM mechanism: user-funded liquidation liquidity followed by oracle-guided automated inventory unwinds.
  • The smaller capital requirements claim is the main mechanism-level promise, not just a product slogan.
  • The explicit use of an external price oracle plus a Curve-style invariant adaptation makes B.AMM a liquidation-control primitive, not just another AMM.

4) Whitepaper repository README

Source: https://raw.githubusercontent.com/backstop-protocol/whitepaper/master/README.md

Selected excerpts:

Relevant material that was written either by the team or by others

Additional signals from the source:

  • Minimal but useful confirmation that the project maintained a dedicated whitepaper/materials repository.
  • The V2 docs link directly to the B.AMM PDF in that repository and to IPFS, which is enough to treat the whitepaper as a canonical primary source even though this pass focused on readable docs pages.

Notes

  • B.Protocol cleared the bar because it makes liquidation-right allocation and liquidation-capital organization unusually legible.
  • The most reusable insight is the internal evolution from keeper-priority auctions in V1 to user-funded backstop pools plus automated collateral rebalancing in V2.
  • Main control surfaces to compare later: liquidation franchise allocation, idle-capital routing, oracle dependence, rebalance invariant design, and who captures liquidation surplus.

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