I have been studying BTCFi recently, and I have also dabbled in the Bitcoin ecosystem. Although I don’t know much about it, I am looking forward to communicating with you.
I talked to my friends at @SideProtocol about this project and found it interesting at the time. Today, I would like to take the opportunity of their release of the token economic model to talk about my views in detail.
For a long time, projects in the Bitcoin ecosystem have been based on EVM-based second-layer networks, which are difficult to get rid of the security assumption of multi-signature cross-chain. However, unlike other Bitcoin L2 solutions based on EVM, Side is a high-performance L1 blockchain modified through the Cosmos underlying layer, which fully supports BTC address format and wallet signatures. And like Babylon, it belongs to the category of Bitcoin application chain, but it does not do BTC staking, but focuses on Bitcoin native lending. Here, Bitcoin technology DLC is used, which can enable users to host BTC themselves when it is used as collateral.
The advantage of this is that users do not have to give up control of their assets. As long as they are not liquidated, they will not lose control of their assets. More importantly, Side introduced a lending model based on liquidity pools on this basis, directly positioning itself as the native Aave chain of Bitcoin.
Side's functionality is not limited to lending, it also supports Rust development environment. Rust's advantages are obvious. Mainstream public chains such as #Solana, #Polkadot, #NEARProtocol,#Suiand#Aptosall use Rust. This language is widely used, has excellent performance, and is more convenient for developers to migrate projects.
In addition to the common gas fee income of the public chain, the profit model of the protocol also includes interest income from native lending products. During the test network, ancillary products such as DEX, staking, and cross-chain bridges were also launched.
After the mainnet is launched, Side Protocol will issue 10% of the total tokens as a Genesis airdrop, with the target groups covering active users of the Bitcoin community, the NFT community, and supporters of the Cosmos community. For players in the Bitcoin ecosystem, Bitcoin ecosystem players can pay special attention to it!