In just one day after launch, the TVL surpassed 5.5 billion USD. What exactly is Big Data Protocol (BDP)?

This article is an original piece by Chain Catcher, authored by Gu Yu.

On March 7, the DeFi protocol Big Data Protocol went viral in both domestic and international DeFi communities. It is rumored that well-known figures such as SBF and others are participating in the mining of this project. Currently, the total locked value (TVL) has exceeded $5.5 billion, ranking it second among all DeFi protocols, and this project was launched just one day ago.

Why has Big Data Protocol been able to attract such a large amount of funding in a short period? What are its operational mechanisms and value capture mechanisms? With these questions in mind, Chain Catcher reporters conducted preliminary research and analysis on the project.

According to official information, Big Data Protocol is a protocol that provides a liquidity market for commercially valuable data, similar to a decentralized data trading market. Its data mainly comes from the 14,141 professional data providers connected to the data platform Amass Insights, founded by the project's co-founder in 2015. This includes stock rating data provided by ClosingBell, on-chain trading indicators provided by Glassnode, and hourly data for Binance BTC/USDT provided by Wootrade.

In other words, Big Data Protocol is a project focused on the data market, and its core team members have long provided databases necessary for investment decision-making to hedge funds, family offices, and other institutional investors. However, traditional data markets often suffer from poor liquidity. Therefore, Big Data Protocol aims to transform the operational model of traditional data markets through blockchain technology, enhancing liquidity in the data market by tokenizing data sets and implementing liquidity mining programs, while ensuring the authenticity and reliability of data through professional data providers.

Big Data Protocol has two types of tokens: the platform token BDP and data tokens. The main application scenario for the platform token is the creation, purchase, and trading of data sets. Users holding a certain amount of BDP can access data sets and receive airdrops of data tokens. Additionally, a portion of the BDP paid for purchasing data sets and submitted by data providers will be burned.

It is understood that the total issuance of BDP is 80 million tokens, with an initial circulating supply of 24 million tokens in the first two months, all released through its single asset staking pool within six days before the launch. The supported staking assets include WETH, LINK, AAVE, OCEAN, TOMOE, and others. Currently, the annualized APY is mostly between 200%-300%.

Compared to the token distribution mechanisms of most DeFi projects, the six-day mining period for BDP's initial circulating supply is very short. Additionally, the DeFi market has not seen stable high-yield mining projects for a long time, which may stimulate investors to invest more funds in mining in the short term.

Data tokens are tokens issued by Big Data Protocol based on specific data sets. Different data sets will have different data tokens issued. Users holding these data tokens can obtain access to the data sets by burning the tokens.

Big Data Protocol has created a token called bALPHA based on the first group of managed data sets, with a total issuance of 18,000 tokens. The accessible data sets include top DeFi token sentiment data from Twitter, key performance indicators from over 80 listed companies' quarterly reports, Glassnode on-chain indicators, and more. Next, Big Data Protocol plans to issue data tokens named bBETA and bGAMMA.

Currently, users can provide liquidity on Uniswap for BDP/ETH or bALPHA/ETH to obtain bALPHA, and all bALPHA will be gradually released from the aforementioned liquidity pools within three months.

In April this year, Big Data Protocol plans to launch the BDP data market with the support of Ocean Protocol, where third-party data providers can independently publish data sets and data tokens. The fees generated from publishing, trading, and consuming data tokens in this market will be owned by data providers and BDP holders, with a certain percentage paid to the Ocean community. Additionally, the BDP data market will be integrated into Ocean Protocol, and BDP data tokens will be cross-listed on Ocean Protocol and Ethereum.

According to official information, the upcoming roadmap for Big Data Protocol includes the following points:

• Integration with Polkadot and Solana, migrating to layer 2;
• Using BDP and data tokens as collateral to issue stablecoins;
• Integration with DeFi lending protocols to use BDP and data tokens as collateral;
• Supporting the buying and selling of private data while protecting privacy;
• Launching the BDP Oracle market and establishing partnerships with oracles and crypto projects that require professional data providers.

It is worth noting that Big Data Protocol states that its smart contracts are developed and audited by the TomoChain and LUAswap teams, which means they have not yet undergone review by a professional security auditing firm.

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