Bitcoin anchor currency big PK: Ethereum, EOS, Polkadot melee is in full swing

Bitcoin is the cornerstone of the encrypted world. Since the Bitcoin network does not support complex operations, there are very few applications based on the Bitcoin network, which limits the wider use of Bitcoin in the encrypted world.

Due to the characteristics of slow transfers and high fees, Bitcoin can only lie in wallets or be active in exchanges most of the time. In the wider encrypted world, it is difficult to see Bitcoin.

Bitcoin is the king of the encrypted world, but for any asset, liquidity is crucial. Slow speed and high fees make the use value of Bitcoin in the encrypted world close to zero. There is no doubt that wider use can Increase the value of Bitcoin.

Mapping Bitcoin to other faster public chains such as Ethereum, not only the transfer speed is fast and the handling fee is low, but it can also increase the usage of Bitcoin in the encrypted world and increase the value of Bitcoin. This sounds good.

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The Bitcoin network is recognized as the most secure network. Transferring assets from a high-security network to a low-security network is a major obstacle in itself. This does not only refer to the transfer to Ethereum, but also to other networks.

Most mainstream applications do not support ERC20 Bitcoin, and the scope of use is narrow. Even if users want to use ERC20 Bitcoin with faster speed and lower cost, mainstream applications do not support it. How to use it?

There is also the issue of motivation. Bitcoin users have no motivation to use ERC20 Bitcoin. If they want to use DeFi to earn income, they can also lend money on centralized platforms. If they want to increase leverage, centralized exchanges can also achieve it.

Centralized platforms have centralization risks, but DeFi also has code risks, because open source platforms are more likely to be attacked, and there is a high probability that no one will lose money, so security is a major obstacle. (Brother Qu’s Note: If it can withstand the long-term test and has a sound insurance mechanism, the anxiety about security may be greatly alleviated.)

If the above problems cannot be solved, it will be a difficult journey to map Bitcoin to other public chains.

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DeFi is an exciting field, but now the amount of funds carried by DeFi is limited, and there are not many things that can be done. The liquidity of many DeFi products is still not good, and the cost of capital cannot be further reduced.

The foundation of DeFi is collateral. The most valuable and stable asset in the encrypted world is naturally Bitcoin, which is the highest quality collateral.

Using Bitcoin as collateral for lending will make DeFi more stable.

The market value of Bitcoin is huge. If a part of Bitcoin can be accessed, it will provide DeFi with better liquidity and a better user experience. At the same time, for decentralized exchanges, the introduction of mainstream assets will provide users with a better trading experience.

But it is obviously a wrong idea to only think about mapping Bitcoin to its own public chain. Going back to the question raised in the first part, what motivation do users have to map Bitcoin to other public chains?

The mapping of Bitcoin to other public chains requires not only complete infrastructure, for example, all major exchanges support ERC20 Bitcoin, but also the motivation of Bitcoin users.

The most reliable way is to create demand. If the demand is large enough, the profit will be high enough. Only then will there be Bitcoin users who are willing to map Bitcoin to meet the demand and earn profits.

The second is the arbitrage space. The existence of arbitrage space can also give users incentives.

One of the main features of DeFi is the low interest rate. For example, on LENDF.ME, the annualized interest rate for borrowing USDT is more than 6 points, but the lending rate on the centralized platform is above 10 points, and there is room for arbitrage here. (This is just an example, not a recommendation)

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The Ethereum network is relatively active in introducing Bitcoin, and has achieved good results.

The bitcoins on Ethereum are WBTC, imBTC, HBTC according to the timeline. There is also a TBTC that has received widespread attention and has not yet been launched.

1、WBTC

WBTC was born in January 2019 and issued by WBTC DAO. DAO members include Kyber, Compound, DDEX and other well-known DeFi projects.

Supporters of WBTC include many well-known protocols, exchanges, and wallets. It is not an exaggeration to say that it is a direct descendant of Ethereum.

The minting process of WBTC requires the acceptor and the custodian to jointly send a coin minting request to complete. The acceptor may be a member of DAO or not. The custodian currently only has one BitGo, and the official website has announced a custody address.

Users can obtain WBTC through many acceptors and decentralized exchanges, and can use it in many DeFi applications, with rich acquisition channels and usage scenarios.

According to the Ethereum blockchain data, the circulation of WBTC is 888 pieces, the total market value is about 7.63 million US dollars, and the number of currency holding addresses is 1776.

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Image source: Compound official website

2、imBTC

The issuer of imBTC is Tokenlon, a decentralized exchange under the well-known wallet imToken of Tokenlon, and the issuance method is 1:1 anchor issuance.

imBTC is different from WBTC in that the issuance, acceptance, and custody are all independently completed by Tokenlon, and it is a Bitcoin-anchored currency controlled by a separate entity.

Users can subscribe to imBTC in the imBTC DAPP in the imToken wallet, or purchase imBTC in Tokenlon.

Users who hold imBTC can enjoy the revenue share of Tokenlon Exchange. The revenue share is halved year by year. In the first year, 100% of the revenue is distributed to imBTC users, 50% in the second year, 25% in the third year, and so on. . The current annualized rate of return on holdings is 1.23%.

The use scenarios are currently relatively limited. In addition to trading in Tokenlon, you can also manage money or borrow money on LENDF.ME. Ethereum blockchain data shows that the amount of imBTC on LENDF.ME accounts for 43.7% of the total imBTC.

According to the Ethereum blockchain data, the total number of imBTC issued is 584, the total market value is about 5.02 million US dollars, and the number of currency holding addresses is 1092.

3、HBTC

HBTC is a 1:1 anchored bitcoin recently issued by Huobi. Similar to imBTC, the issuance, acceptance, and custody are all completed by Huobi, and it is also a bitcoin-anchored currency controlled by a separate entity.

The acquisition of HBTC is relatively simple. When withdrawing coins on Huobi, you can choose the BTC of the Bitcoin main network or the HBTC of the Ethereum main network. It is very convenient for users with a Huobi account to obtain it.

The usage scenario is also relatively simple. The amount of HBTC on its partner LENDF.ME accounts for 53% of the total HBTC. Users can deposit money or mortgage loans on LENDF.ME. Because the release time is short, the single usage scenario is understandable.

The HBTC white paper stated that the issuance of HBTC is intended to connect the centralized market and the DeFi market, reduce the cost for users to enter the DeFi world, and provide users with more efficient digital asset services.

Huobi is an exchange, and the HBTC charged into Huobi will be included in the special HBTC address after a certain period of time, and the number of currency-holding addresses will decrease. Therefore, the net increase in the number of currency-holding addresses of Huobi HBTC must be transferred from Huobi It will only happen when HBTC is transferred to other wallets, and transferring HBTC from the wallet address to LENDF.ME will also reduce the number of currency holding addresses.

The Huobi public chain focuses on finance, and DeFi has unlimited potential. Huobi will naturally not miss it. Whether it is building its own financial ecosystem or participating in the DeFi ecosystem of Ethereum, Huobi issues HBTC with its credit endorsement for Huobi. Words are all beneficial and harmless, and it also has its unique value in cultivating users' habits of using other public chain bitcoins.

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1、EBTC

EOS is a well-known public chain. Although its DeFi development is lacklustre, it is also very important for exchanges to introduce mainstream assets such as Bitcoin.

Based on EOS, Bitpie issued 1:1 EBTC anchored to Bitcoin. Like imBTC and HBTC, it is also an anchored Bitcoin controlled by a single entity of Bitpie.

The development of DeFi on EOS is relatively weak, so in theory, the biggest usage scenario of EBTC is trading, and some spinach DAPPs support EBTC betting, but spinach DAPPs are not as good as before, and the usage scenario of this area has also shrunk.

Bitpie has a built-in trading function. From the browser, you can see that most of the EBTC are in Bitpie's own address. The decentralized exchange Newdex on EOS also launched EBTC trading pairs, but the trading volume is bleak.

EOS blockchain data shows that the total circulation of EBTC is 415 pieces, the total market value is about 3.57 million US dollars, and the number of currency holding addresses is 8433.

2、BTC

WhaleEx, another decentralized exchange on EOS, also issued Bitcoin-anchored coins through gateways. Asset custody is completed with Bitpie through multi-signature. The name displayed on Whale Exchange is " BTC". (In order to distinguish easily, District Brother added a quotation mark)

The EBTC issued by Bitpie has been listed on the Whale Exchange before, and it has been converted into a new "BTC". Users who hold EBTC need to manually convert it to "BTC" on the Whale Exchange before they can trade Bitcoin.

EOS blockchain data shows that the total circulation of "BTC" is 165 pieces, the total market value is about 1.42 million US dollars, and the number of currency holding addresses is 49.

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ChainX

ChainX is a well-known project in the Polkadot ecosystem, focusing on cross-chain direction. The main network was launched in May 2019.

The vision of ChainX is to break down the asset barriers between chains and realize the public chain ecology of multi-currency integration. Immediately after the launch of the mainnet, the BTC cross-chain recharge activity was launched, which attracted extensive participation and attention.

ChainX uses currency mining to distribute tokens. The recharged BTC assets can be converted into computing power, and the computing power can be used to obtain the ChainX token PCX. Due to the high initial return rate, there are many participants.

The recharge mining was announced to stop a week after it started, and it was reopened in July, during which lock mining was developed. Users only need to transfer their bitcoins to a bitcoin address under their control, and bind this address with their own ChainX address to realize lock mining. The purpose of lock mining is to expand the influence of ChainX in the Bitcoin world and expand the consensus.

During the development process, the weight of Bitcoin exchange computing power has been gradually reduced, and more weight has been added to ChainX's native token PCX. At present, the computing power weight of recharge mining is twice the weight of lock mining.

Recharge mining will generate corresponding X-BTC, which can be transferred and traded, and can be traded directly in the ChainX client, and can be transferred to DeFi and applications on the Polkadot ecosystem in the future. X-BTC is managed by multi-signature trustees, and the trustees are 15 nodes with the best comprehensive strength to jointly custody Bitcoin assets.

Lock-up mining will generate corresponding L-BTC, which can only be mined but not transferred or traded. After the user transfers the BTC in the lock-up address, the corresponding L-BTC will be destroyed.

According to the official website data, the current total number of X-BTC is 99, the number of cross-chain recharge addresses is 498, and the number of corresponding currency holding addresses should also be 498, with a total market value of about 850,000 US dollars.

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Binance issued the Binance Chain-based Bitcoin BTCB in 2019, which is also an anchored Bitcoin controlled by a single entity of Binance, and the custody address is publicly available.

Binance Chain focuses on asset transactions, and the issuance of anchored bitcoins is to serve its decentralized exchange.

The way to obtain BTCB is also simple. When withdrawing coins in Binance, you can choose the BTC of the Bitcoin main network or the BTCB of the Binance Chain main network. It is very convenient for users with Binance accounts to obtain.

Summarize

In addition to the above, there are still many teams gearing up to attack Bitcoin, such as TBTC on Ethereum, which has not yet launched but has received widespread attention.

Kava, the first DeFi project on Cosmos, wants to become the second Maker and build a stable currency based on Cosmos. Kava’s official website prominently lists the assets of the four main chains of BTC, ATOM, XRP, and BNB. It is obvious that the collateral will include BTC, which can also be confirmed from the founder’s interview.

Bitcoin is the cornerstone of the encrypted world, and the popularity of anchoring Bitcoin will allow Bitcoin to have a wider range of application scenarios.

Whether it is DeFi or ordinary applications, they will gain huge growth and create more value.

Disclaimer: This article is the author's independent point of view, and does not represent the position of the Blockchain Institute (public account), nor does it constitute any investment opinion or suggestion. The picture comes from the Internet.

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Disclaimer: This article is the author's independent point of view, and does not represent the position of the Blockchain Institute (public account), nor does it constitute any investment opinion or suggestion. The picture comes from the Internet.