Original author: Grapefruit, ChainCatcher

With the continuous rise of BRC 20 tokens such as ORDI, SATS, and RATS, the popularity of the Bitcoin ecosystem has also increased. Bitcoin ecosystem applications and infrastructure surrounding the Ordinals inscription and BRC 20 have sprung up like mushrooms after rain.

According to data from the encryption platform Rootdata, since December, multiple applications within the Bitcoin ecosystem have announced that they have received financing.

On December 20, ALEX Lab, a one-stop DeFi service platform based on Bitcoin Stack, received a strategic investment from LK Venture, a subsidiary of Linekong Interactive.

On December 18, Biis, a Bitcoin BRC ecosystem aggregation toolset, announced that it had received strategic investment from crypto investment institution CGV; GoDID, a DID market aggregator, completed a new round of financing led by NGC with a valuation of 30 million. A few days ago, GODID's sub-platform bdid.io focused on the BTC ecosystem and issued the token BDID.

On December 16, Tap Protocol, a Bitcoin infrastructure project used to build OrdFi applications, completed a $4.2 million financing round led by Sora Ventures; on December 14, bitSmiley, a Bitcoin stablecoin lending protocol, completed a round of financing led by ABCDE and OKX Venture; on December 11, Liquidium, a Bitcoin Ordinals lending solution, completed a $1.25 million Pre-Seed round of financing, with participation from Bitcoin Frontier Fund, Sora Ventures and others.

On December 7, the cross-chain protocol MAP Protocol announced that it had received strategic investment from DWF Labs and Waterdrip Capital, and had achieved BRC 20 cross-chain; the Bitcoin staking project Babylon announced the completion of an $18 million Series A financing round, led by Polychain Capital and Hack VC, etc.

In less than two weeks, a total of eight Bitcoin ecosystem-related projects received funding support from crypto capital, covering cross-chain, lending, staking and other products, and all of them were financial application products built around new assets such as Ordinals and BRC 20.

With the influx of funds, the wealth effect of the Bitcoin ecosystem continues to ferment, gradually evolving from the hype of the BRC 20 inscription to the infrastructure and application products built around these assets, such as the Bitcoin ecosystem's IDO platform Bounce Finance token AUCTION, the cross-chain bridge Multibit token MUBI, and the stablecoin BitStable governance token BSSB, which have all risen by more than 100% in the past 7 days. With the strong support of capital and the surge in Bitcoin ecosystem application assets, a new track, BRCFi, has been born.

BRCFi refers to the DeFi ecosystem driven by BRC 20 tokens, and DeFi application products built around BRC 20 and Ordinals assets. At present, the BRCFi track has launched multiple cross-chain bridges, stablecoins, IDO platforms, lending and other suite products. So, what are the representative products of BRCFi applications? How is the operation?

Bounce Finance's BRCFi suite: cross-chain bridges, stablecoins, IDO platforms, etc.

Bounce Finance (AUCTION) centralized auction platform takes off with the help of Bitcoin

Bounce Finance (AUCTION) was originally a multi-chain decentralized auction platform that provides services such as token issuance and NFT auctions, and simplifies the process of IDO for new projects. The platform was founded in September 2020 by Jack Lu and Ryan Fang, of which Jack Lu is also a partner at NGC Ventures. Born in the era of the full-scale explosion of DeFi applications, Bounce Finance applications are not outstanding, and as the crypto market has gone bearish, the platform has gradually faded out of the sight of crypto users.

But in November, the Bounce Finance platform quickly became popular for issuing the Bitcoin ecosystem's cross-chain bridge Multibit token MUBI and the stablecoin BitStable token BSSB. After the IDO of the Bounce Finance platform, MUBI and BSSB increased by dozens of times. The wealth effect brought by these IDO assets also made the Bounce Finance asset issuance platform hidden behind the scenes the biggest winner, and was regarded by users as "the birthplace of the next ten-fold coin."

In the past month, Bounce Finance has successfully issued three Bitcoin ecosystem project tokens. On November 12, the Bitcoin cross-chain bridge MultiBit asset MUBI was issued, with an IDO unit price of $0.00047 and a current price of $0.39, a cumulative increase of more than 1,000 times; on November 29, the public sale of the Bitcoin-based cross-chain stablecoin protocol Bitstable project token BSSB was launched, with each BSSB IDO costing about $0.27 and a current price of $9.5, a cumulative increase of about 40 times; on December 15, the DID service platform GoDID token BDID in the Bitcoin ecosystem was launched, with a public sale price of $0.0029 and a current price of $0.06, a return of more than 20 times.

Because of the successive IDO projects that have created wealth, Bounce Finance has become an IDO benefit platform in the Bitcoin ecosystem. After successfully issuing the Bitcoin ecosystem asset MUBI, Bounce Finance officially announced a series of actions to enter the Bitcoin ecosystem.

On November 25, Bounce Finance posted on social media that it is preparing to widely cultivate the BTC ecosystem and announced that it will focus on incubating and providing auction support for BTC projects.

On December 1, Bounce Bit, a Bitcoin DeFi application chain based on Binance BTCB, was announced. BTCB is a packaged asset issued by Binance that is 1:1 anchored to the real BTC asset. Users can obtain and hold BTCB by locking BTC, allowing BTC holders to use BTCB to participate in on-chain DeFi activities without giving up their Bitcoin positions, thereby gaining more benefits. The Bounce Bit network will build a series of DeFi applications around BTCB and its native token AUCTION assets.

On December 6, Bounce Finance announced that it would upgrade its brand to Bounce Brand. Its products include Bounce Bit, a Bitcoin-based application chain, Bounce Box, a one-stop portal for exploring Bitcoin DeFi applications, and Bounce Auction, a Bitcoin ecosystem asset auction platform.

On December 19, Bounce Brand stated that IDO will adopt a "kill two birds with one stone" strategy to launch token issuance. Two independent teams will jointly issue a token. The project identity will be kept confidential. AUCTION and BitStable's stablecoin DAII will be used for participation, and there will be two auction pools.

With the help of the Bitcoin ecosystem, Bounce Finance has successfully transformed from an auction platform forgotten by users to an IDO leading application that deeply cultivates the Bitcoin ecosystem. Among them, the native token AUCTION has increased by about 108% in the past 7 days and more than 40% yesterday. The current price is 40.78 US dollars, with a market value of 260 million US dollars.

Bitcoin cross-chain bridge protocol Multibit

Multibit Bridge (MUBI) is a cross-chain protocol within the Bitcoin ecosystem that supports easy cross-chain transfer of BRC 20 and ERC 20 assets, allowing cross-chain transfer of assets between EVM networks such as Ethereum and BNB Chain and the Bitcoin network.

MultiBit simplifies the cross-chain token transfer process between Bitcoin BRC 20 and EVM networks. The specific cross-chain implementation process is that the user first deposits the cross-chain BRC 20 token to the BRC 20 address provided by Multibit. After the Multibit protocol is confirmed, the token will be minted and released to the user on the corresponding EVM target chain. When the user wants to cross the BRC 20 token back, Multibit will destroy the corresponding number of tokens from the EVM chain and release the corresponding BRC 20 token on the Bitcoin chain.

However, Multibit’s goal is not just a cross-chain bridge. In the future, it will also integrate a multi-faceted BRCFi application ecosystem including OAMM transactions, yield aggregators, and stablecoin issuance.

Among them, OAMM trading refers to the decentralized trading protocol of the automated market maker (OAMM) launched by Multibit based on Ordinals assets. The trading platform is designed specifically for trading Ordinals (ORDI) tokens, and all funding pools are paired with ORDI tokens for price discovery; the yield aggregator refers to optimizing the yield of ORDI tokens in the BRCFi application; stablecoins are also minted with ORDI as collateral, etc.

The Multibit platform was first launched in May, but it received little attention before November. What made it a success was the launch of the MUBI token. On November 12, MUBI completed the IDO auction on Bounce Finance, with an opening increase of 1140%.

The wealth effect brought by IDO quickly made Multibit a star project in the Bitcoin ecosystem. The MUBI token has risen by about 131% in the past 7 days and is currently priced at about US$0.3. The total issuance volume is 1 billion, the circulation volume is 950 million, and the circulation market value is US$290 million.

Bitcoin Ecosystem Stablecoin BitStable

BitStable (BSSBDAII) is a stablecoin protocol within the Bitcoin ecosystem. The application adopts the BSSBDAII dual token system, where the former BSSB is a governance token and the latter DAII is a stablecoin.

Currently, platform users can use assets approved by "BSSB Governance" as collateral to generate DAII, and only ORDI, MUBI and BTCB assets are supported as collateral. In addition, BitStable has cross-chained some DAII to Ethereum, supporting DAII holders to exchange with USDT.

As of December 19, the BitStable platform has minted 30.75 million DAII, of which 30.54 million are in ERC 20 format and only 210,000 are in BRC 20 format.

BitStable first appeared on the IDO platform Bounce Finance by issuing the BSSB token, which has risen by about 176% in the past seven days and is currently priced at US$7.5. The total number of BSSB issued is 21 million, with a market value of US$180 million.

However, it should be noted that the BitStable protocol has been controversial since its launch. First, the official website could not be opened during the BSSB token public sale, and users even suspected that it was a Rug. The official said that it encountered a coordinated attack and DDOS attack carefully planned by miners and high-tech developers, resulting in uneven distribution of tokens and unauthorized wallets obtaining most of the available supply. The team destroyed 75% of the auctioned tokens. The BitStable X social media account was only online for two days during the auction, and the first content was published on November 27.

In addition, some users said that the three projects of Bounce Finance, Multibit and BitStable are from the same team, aiming to create a Bitcoin ecosystem that integrates IDO, cross-chain and stablecoins. This speculation is not fabricated out of thin air, but has a basis. The IDOs of Multibit and BitStable are both executed on the Bounce Finance platform, and the future IDO projects of the Bounce Finance platform can use BitStable's stablecoin DAII as a participation ticket, and BitStable supports MUBI assets as collateral to cast DAII, etc. The three are inextricably linked.

DID Market Aggregator GoDID Launches Bitcoin Ecosystem DID Management Tool Bdid.io

Like Multibit and BitStable, the DID aggregation tool GoDID also issued the token BDID on Bounce Finance, and on December 18 announced that it had completed a new round of financing led by NGC Ventures with a valuation of 30 million.

However, it is interesting that Jack Lu, the founder of Bounce Finance, is also a partner of NGC Ventures. Some users lamented that all the products launched on the Bounce Finance platform are related to NGC Ventures, and NGC Ventures may be the real operator of a series of Bitcoin ecological projects such as Multibit.

GoDID is a market aggregator for decentralized identities (DIDs). Its core functions are bulk search, query, registration, transaction, and management of DIDs. It currently provides services for ENS, Space ID, and Bitcoin Ordinals DIDs.

On December 15, Bdid.io, a sub-platform of GODID, issued the token BDID on Bounce Finance. Bdid.io was incubated by GODID. The platform can support the registration, transaction and management of mainstream DIDs with various suffixes created by the Ordinals protocol, such as .sats, .bitmap, .btc, .unisat, .bitter, etc.

Among them, the total issuance of BDID is 500 million. The IDO price on the Bounce Finance platform is about US$0.00297. The current quotation is US$0.04, and the return on investment is about 20 times.

Representative lending products: BitSmiley, Liquidium, Liquidium

Stablecoin lending protocol BitSmiley

BitSmiley is a stablecoin lending protocol "MakerDAO+Compound" in the Bitcoin ecosystem. The product mainly consists of a decentralized over-collateralized stablecoin protocol, a lending protocol, and a derivatives protocol. On December 14, bitSmiley announced the completion of a round of financing led by ABCDE and OKX Venture.

Among them, bitUSD is a stablecoin generated by BTC as an excess collateral asset and softly pegged to the US dollar. The collateral mechanism is similar to MakerDAO, except that the issuance of bitUSD is based on BTC as a collateral asset. Any BTC holder generates bitUSD by depositing Bitcoin into the "bitSmiley Treasury" smart contract. Every bitUSD in circulation is backed by excess collateral.

In the bitSmiley protocol, bitUSD can be used to settle debts, such as paying stability fees or loan interest. Users deposit a specific amount of BTC into the bitSmiley Treasury to generate bitUSD. In order to retrieve the deposited BTC, users need to repay the generated bitUSD and pay a certain stability minting fee.

With the stablecoin bitUSD as the core, BitSmiley launched bitLending, a peer-to-peer lending protocol based on BRC 20.

At present, bitSmiley’s products have not yet been launched online, and its official Twitter account was only officially established on December 4.

NFT and BRC 20 lending protocol Liquidium

Liquidium is a P2P lending protocol built on the Ordinals protocol, which supports users to borrow and lend Bitcoin using ordinal inscriptions and BRC 20 as collateral. On December 11, it announced the completion of a $1.25 million Pre-Seed round of financing, with participation from Sora Ventures and others.

Currently, the Liquidium platform only supports Ordinals NFT as collateral for lending. The BRC 20 lending product has not yet been officially opened to the public and is in the whitelist application stage.

The Liquidium platform does not use a liquidation mechanism based on the LTV of the loan collateral value. The loan status depends on the repayment within the set period. If it is not repaid by the due date, the loan is in default and the collateral belongs to the lender.

BRC 20 Ecosystem Stablecoin Lending Protocol Uplink Finance

Uplink Finance (UPFI) is a stablecoin lending protocol designed for investors of BRC-20 assets such as ORDI and SATS. It claims to be the MakerDAO in the BRC-20 ecosystem. BRC 20 asset holders can release the liquidity value of their assets without selling them.

On the Uplink Finance platform, users deposit BRC-20 assets such as BTC, ORDI, SATS, etc. as collateral to over-collateralize and borrow the platform's stablecoin UPSD.

On December 12, Uplink Finance announced that SATS and ORDI will become the first collateral for the minting of the platform's stablecoins, and will airdrop the platform's governance token UPFI to users holding its assets.

At present, the mortgage lending page of the Uplink Finance platform has not been officially launched.

Ordinals Ecosystem Infrastructure Tools: TurtSat, a donation platform, and Tap Protocol for building OrdFi applications

TurtSat: Gitcoin in the Bitcoin Ecosystem

TurtSat (TURT) is a community-led donation platform for Ordinals, whose mission is to become the Gitcoin of the Ordinals world. The platform features a donation protocol, which aims to enable more open source developers and communities to participate in the development of the Ordinals ecosystem and enjoy the benefits. Anyone can build and donate to the Ordinals ecosystem protocol through Turtsat.

In short, project owners can obtain funds through TurtSat, and users can earn income by supporting donation projects. Currently, the TurtSat platform supports the issuance of tokens for multiple Bitcoin ecosystem projects in the form of Lanchpad, which is similar to Bounce Finance in function.

As of December 20, the TurtSat platform has issued BRC 20 asset protocol Chamcha token CHAX, BRC 20 cross-chain bridge Multibit token MUBI, Ordinals aggregation platform NXHUB token NHUB and Ordinals lending platform Dova Protocol token DOVA, Bitcoin ecosystem game platform Rabbit token RAIT, Bitcoin ecosystem metaverse game Svarga token SVGR, etc. These projects are infrastructure construction platforms related to BRC 20 and Ordinals in the Bitcoin ecosystem. Yesterday, the TurtSat platform will also launch the Bitcoin staking platform Zooopia token ZOOA.

On December 7, TurtSat announced the launch of a staking fund pool for its native token TURT, supporting TURT holders to participate in projects that issue tokens on the platform to gain more benefits. In addition, TurtSat will also issue a new asset, EGGS, which needs to be obtained by staking TURT tokens. EGGS can be exchanged for the whitelist of Launch projects. In the future, EGGS will be used in more scenarios such as project online voting, direct exchange of cooperative token packages, etc.

Among them, the maximum issuance volume of TurtSat's native token TURT is 1 billion, with a temporary quotation of US$0.078 and a market value of US$78.73 million. The issuance volume of EGGS has not been disclosed.

Tap Protocol, the platform for building OrdFi

Tap Protocol is a platform for building OrdFi applications launched by Ordinals indexing protocol Trac. On December 16, it announced the completion of a $4.2 million financing round led by Sora Ventures.

Trac is an infrastructure project of the Ordinals ecosystem, which aims to provide a decentralized system to track and access Ordinals-related protocols, such as BRC 20, sats domain names, etc., and provides a standardized interface for how to create, manage and trade digital assets on the Ordinals platform.

Tap Protocol is a platform for building OrdFi applications. It will provide a series of tools to help developers build DeFi products based on Ordinals, even without the complex Bitcoin Layer 2 network, such as providing inscription segmentation and enabling DeFi applications on inscriptions.

In the future, Tap Protocol will launch Ordinals fragmentation products, exchange pools, lending and staking products.