Yesterday we talked about a Bitcoin DeFi project, and also said that Bitcoin's ecosystem will definitely be popular, which is basically the trend. Why do we talk about DeFi? Because the best application of blockchain is DEFI, and it has already risen, and currently occupies a large proportion of all blockchain categories. So if Bitcoin's ecosystem is to rise, then DEFI must be inevitable, so in the past few issues, we will look for some Bitcoin DEFI projects to see if we can find some very potential projects, because if Bitcoin's ecosystem rises in this bull market, then these Bitcoin DEFIs will definitely have a hundredfold potential.
Because the current Bitcoin network does not support smart contracts, most dapps are deployed on L2. The projects we talked about today are all on Rootstock (RSK). We know that side chains cannot be strictly considered L2, which is a bit like polygon to eth.
Rootstock is a smart contract platform (PoW) secured by Bitcoin miners and is currently the most secure smart contract network based on proof of work. As a Bitcoin sidechain, it enhances the value of the Bitcoin ecosystem by expanding the use of Bitcoin currency, and has good compatibility with Ethereum in aspects such as EVM. Decentralized applications can be written using the Solidity compiler and the Web3 standard library to achieve Ethereum compatibility. In addition, it can also expand Bitcoin payments through more on-chain space and off-chain transactions provided by the RIF Lumino payment channel network. The native token of the Rootstock sidechain is RBTC, which is 1:1 anchored to Bitcoin. At present, the TVL of Rootstock is 160 million US dollars. This volume is not bad. Compared with Merlin and the like, there is a gap. The recent increase is actually quite good.
1. Sovryn
Sovryn is a decentralized trading and lending platform that runs on Bitcoin’s sidechains Rootstock (RSK) and BOB (Build on Bitcoin). It allows users to borrow, trade, and yield farm while maintaining their Bitcoin holdings.
Features
- The pioneering force behind BitcoinOS, the Bitcoin computing superlayer, Bitcoin itself can be considered an operating system. It has a consensus mechanism - a combination of technical processes and economic incentives - that ensures that participants follow Bitcoin's rules and agree on the state of the blockchain. This consensus mechanism creates a set of rules that cannot be changed at will - rules without rulers. These rules form the basis for protecting property rights, and these rights protect BTC assets on the blockchain.
- The most feature-rich Bitcoin decentralized finance (DeFi) platform
- A non-custodial and permissionless smart contract system for Bitcoin exchange, lending, lending and margin trading
- Sovryn Dollar (DLLR) Protocol — An Aggregated, Non-custodial, Bitcoin-backed Stablecoin
- A Rootstock-based Distributed Autonomous Organization (DAO) that brings Ethereum Virtual Machine (EVM) superpowers to the Bitcoin ecosystem
Currently available features:
- Zero interest loans for Bitcoin, issuance of stablecoins pegged to the US dollar
- Bitcoin-backed stablecoins
- A decentralized, USD-pegged token backed by over-collateralized Bitcoin
- FastBTC Relay
- A simple and fast two-way exchange method between BTC and RBTC
- Bridge between Rootstock (BTC) and Ethereum, BSC networks
- Spot trading with limit orders
- Sovryn Automated Market Maker (AMM) allows for low-cost, low-slippage, instant token trading
- Margin trading - up to 5 times long/short trading
- Loan Pools/Yield Farms
- Earn fees by lending tokens to margin traders and borrowers
- Loans
- Borrow tokens from the lending pool (all loans are overcollateralized)
- Portfolio management
- SOV staking for fee sharing, voting rights, platform rewards and airdrops
- Bitocracy
- Sovryn’s unique incentive-aligned protocol governance, Sovryn Improvement Protocols (SIPs) are openly discussed on Sovryn’s social channels, then move to the official Bitocracy forums, and then to the Sovryn dApp governance coordination. Every staker has a vote and participates in decisions that shape the development of the platform.
Token Economy
The project was launched in 2021, with a total token amount of 100,000,000. Currently, 63,892,691 are in circulation. The current exchange rate is 0.6 US dollars. The peak was $40.0845 (2021-10-07). Now it can be said that it has almost fallen by 99%, which is a bit miserable. In terms of token distribution, we can see that early proponents account for 38.65%, founders account for 25%, early contributors account for 17.1%, development account for 10%, ecosystem account for 5%, and planned sales account for 4.1%.
Currently, the TVL on this defi official website shows that 1,330 BTC are locked, currently worth 78 million US dollars, but its current market value is only 38 million US dollars, and FDV is only 60 million US dollars, compared with its TVL, it is a little lower, because we know that the TVL and market value of DEFI projects are basically 1:1.
2. Money on Chain
Money on Chain uses the RSK platform to provide decentralized stablecoins and financial services to Bitcoin users. Its main products include:
- DOC: A stablecoin pegged to the US dollar.
- BPro: A token through which Bitcoin holders can gain yield and reduce risk.
Money On Chain provides decentralized finance (DeFi) solutions built by Bitcoin enthusiasts.
Money On Chain is a decentralized, Bitcoin-backed stablecoin protocol that uses MOC tokens for governance and adopts IPFS technology for web applications.
There is not much to say about stablecoins. We have talked about it too much before. The total number of tokens is 210,000,000, and currently 177,444,019 are in circulation. The current FDV is 14 million US dollars. Then I looked at the overall TVL and it is about 68 million US dollars.
Then I logged into his app and saw the Bitcoin data above. There are about 1,169 Bitcoins stored, which is about 70 million US dollars, so it is suitable for defilama. Compared with other stablecoin projects, the TLV and market value ratio is about 2:1, so this project is also in an undervalued range.
Finally, let's summarize these two projects. Both are on the Bitcoin sidechain RSK. The main reason is that this chain is not very well-known. From the perspective of these two Bitcoin DeFi projects, the degree of innovation is definitely average, without much novelty, but from the data analysis, that is, the TVL and market value ratio, it is relatively reasonable, or a little underestimated. If you think that the Bitcoin ecosystem will definitely prosper, then you can bet on it. Tomorrow we will continue to bring several Bitcoin DeFi projects, and finally we will summarize. Let's not talk about the conclusion here. #内容挖矿
