Today we continue to introduce the projects with the strongest rebound in 24 hours. The first one is ALEX LABS, a DEFI project on the Bitcoin L2 stacks. It increased by 50% in one day? The current market value is 40 million US dollars. At the peak of this bull market, it was 0.52, and now it is only 0.074 US dollars, so the decline is also 85%, ranking 500+. Let’s take a look at who this person is.
Introduction
Alex is built on Stacks. As the smart contract layer of Bitcoin, Stacks is currently the most prosperous and highest-valued ecosystem in the second layer of Bitcoin, and Alex is the leading DeFi protocol on Stacks. Alex Lab is committed to building the DeFi system of Bitcoin. The functions that have been launched and are being developed include BRC-20 token index, Bitcoin bridge, AMM, order book, pledge, Launchpad and a series of other functions. It has initially built a complete DeFi ecological function and will provide a complete set of infrastructure guarantees for the development of inscriptions and BRC-20 tokens.
The current TVL written on the official website is 120 million US dollars, the total transaction volume is 1.8 billion, and there are 60,000 active wallets.
product description
1.AMM
AMM is also a conventional AMM method, but the design draws on Balancer V2, which is a multi-asset pool. For details, please see the episode about BAL. The project party has expanded its formula on this basis:
WeightedEquation is a fork of Balancer that generalizes the constant product AMM popularized by Uniswap and implements the following formula:
Where V is a constant, Bi is the balance of token i, and wi is the weight of token i in the pool.
As the price of each token changes, arbitrageurs rebalance the pool through trades. This maintains the expected weight of the value held by each token while collecting transaction fees from traders. The collateral implements the weighted equation in the balancing pool.
The Yield Token equation follows the Yield Space, designed to facilitate efficient trading between ayToken and Token. The model is extended to improve capital efficiency from a liquidity provision perspective (inspired by Uniswap V3).
For example, if a pool is configured to trade between 0% and 10% APY, capital efficiency can be improved by up to 40x compared to trading between −∞ and +∞.
Currently, there are 5 pools on AMM with liquidity exceeding $1M, namely: STX-aBTC ($2.71M), STX-ALEX ($23.76M), STX-xBTC ($5.84M), STX-sUSDT ($1.49M), and ALEX-atALEX ($6.82M).
2.B20(Orderbook)
Alex Labs’ “Alex Orderbook” is an innovative order book system that adopts an on-chain/off-chain hybrid design. In this system, users’ buy and sell commitments are communicated through cryptographically signed messages, which are processed and matched by an off-chain matching engine before being settled on-chain. A significant advantage of this design is that it allows users to quickly create or cancel orders without paying fees, and to confirm these orders immediately without having to wait for confirmation from the underlying blockchain.
Currently, Alex Orderbook supports the trading of BRC20 and SIP10 tokens, with a cumulative trading volume of 56 million US dollars. A highlight of this system is its efficient processing capability, which can match and settle up to 200,000 orders in each Bitcoin block. This efficient matching and settlement mechanism not only provides an instant confirmation experience, but also ensures the security of transactions.
With this advanced technology, Alex Labs' OrderBook/Perpetual DEX becomes one of the fastest and most secure products on the market. It not only improves transaction efficiency, but also provides users with a more convenient and secure trading environment, further consolidating Alex Labs' position in the Bitcoin DeFi field.
3Launchpad platform
Alex Launchpad uses a hybrid on-chain/off-chain model to provide an IDO platform for BRC-20 tokens. All transactions related to user funds are on-chain, while the lottery part with higher computational costs is completed off-chain and submitted to the on-chain contract for verification. The community can decide on the projects to conduct IDO through voting governance. Five IDO projects have been completed so far:
ALEX（2022.1.19）
BANANA（2022.6.21）
ORMM (July 28, 2023, BRC20 token)
Bluewheel Mining（2023.8.25）
CHAX (2023.11.13, BRC20 token)
4. Staking and Liquidity Mining
Currently, ALEX has launched its own token staking, with 1.88M currently staked and an APY of 6.38%.
The main ones on Farm are Alex-Lialex APR2.1%, stx-alex APR103%, stx-btc APR58%. The others include STX-SUSDT APR66.6% etc.
5. Cross-chain bridge
Alex Lab has currently developed cross-chain bridges between Stacks and the Bitcoin network, Ethereum and BSC Mainnet. The cross-chain with Bitcoin Layer 1 supports bridging of BTC and BRC-20 tokens, and the cross-chain with Ethereum and BSC supports bridging of USDT, LUNR and BTCB (BSC)/WBTC (Ethereum). Its features include support for multi-signatures and a user-end asset transfer method.
The total cross-chain value currently accumulated is $177 million, with 18,000 users and 33,000 transactions.
6. Bitcoin Oracle
The Bitcoin Oracle mentioned here is different from the oracle we often mention on Ethereum. It currently refers to the establishment of a decentralized, tamper-proof and censorship-resistant index for BRC-20 on Bitcoin. Although BRC20 exists entirely on the chain, Bitcoin L1 does not natively support BRC-20 tokens and cannot read inscription data.
Therefore, Alex Lab is working with Domo, the founder of the BRC-20 token standard, and existing major off-chain indexers (such as BestinSlot, OKX, Hiro system, Unisat, etc.) to build an on-chain index for BRC-20.
The Bitcoin oracle itself does not implement an on-chain version of the “indexing engine”, although this is theoretically possible but computationally very expensive. Instead, it runs a federated model that relies on a federation of off-chain indexers that validate and submit the latest meta-protocol transactions to an on-chain smart contract written by ALEX, which checks the validators by (1) implementing the consensus mechanism and (2) independently verifying that the alleged Bitcoin transaction has indeed been mined (which only a Bitcoin L2 like Stacks can do).
Consensus is achieved when a minimum threshold of pre-approved validators (i.e. “m-of-n”) agree on a specific event.
team
The Chinese team, Chiente Hsu is the co-founder and chief executive officer (CEO) of ALEX LABS.
Background: Chiente Hsu has a rich background in finance and technology. She has held senior management positions in top financial institutions such as Morgan Stanley and UBS, and has deep experience in risk management and quantitative analysis.
Token Economy
In terms of token distribution, Alex Lab will issue tokens in March 2022, with a total of 1,000,000,000 tokens. Currently, 606,489,877 tokens are in circulation, with a circulation rate of 60%. It is expected to be fully unlocked within five years (February 2027). The distribution is as follows:
20% to the Foundation, allocated to the community reserve pool to support the ALEX ecosystem, early adopters, and future development
50% is reserved for the community to earn ALEX through staking or providing liquidity tokens
30% for employees, advisors, early investors and founding team
The current TVL is 13 million US dollars. It was around 100 million at its peak, but it has fallen sharply recently.
Finally, let me summarize. This is the current DEFI project on Bitcoin L2. Bitcoin L2 has appeared after BRC20 became popular. Stacks has been working on it for 10 years, and other projects have just started. So this project can be said to have no rivals. However, the disadvantage is that the TVL of the current project has fallen by 90%, and the price ratio has fallen by 90%. Previously, in May, it had an incident where more than 4.3 million US dollars were stolen. This is fatal for an initial DEFI project. But are you thinking about it? There are not many cases of theft of coins in DEFI projects. It is a new industry, and it is in its early stages. Defi has only been out for 4 years and is not mature enough. In addition, the language used by stacks has been analyzed before. It is also difficult to develop APPs on it. So I think opportunities are gambled. The Bitcoin ecosystem will definitely rise, and DEFI will definitely rise. What do you think? #内容挖矿
