Understand the Bitcoin DeFi protocol BitStable in one article, how to participate in the token sale?

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Within two hours of Bounce Finance’s announcement, the price of $AUCTION increased by more than 15%.

On November 27, Bounce Finance announced that the decentralized asset protocol BitStable will launch the native token $BSSB on the Bounce Launchpad at 12:00 on November 29. Users can obtain the corresponding $ by pledging $AUCTION tokens or through the auction mechanism. BSSB share.

Understand the Bitcoin DeFi protocol BitStable in one article, how to participate in the token sale?

Within two hours of Bounce Finance’s announcement, the price of $AUCTION increased by more than 15%. What is BitStable? How to obtain BSSB tokens? BlockBeats sorted out the available information.

How to get BSSB on Bounce Finance?

According to the information, the total supply of $BSSB is 21 million coins, and the total amount raised is US$500,000. 50% of it will be distributed through Bounce Finance, and this distribution will be divided into two rounds:

60% of the allocation will be carried out through staking Auction (obtaining the corresponding $BSSB allocation by staking AUCTION tokens);

40% of the allocation will be through the auction mechanism (1 $BSSB = 0.0000233 ETH).

After the distribution of $BSSB ends, the BSSB protocol will be officially launched. Currently, users canBitStable official websiteBrowse protocol introduction, other related functions have not yet been opened.

Understand the Bitcoin DeFi protocol BitStable in one article, how to participate in the token sale?

Users can pledge AUCTION in advance. existBounce Home Page, click Launch Token Portal to enterPledge Acution interface, after connecting to the wallet, click Stake to stake.

Understand the Bitcoin DeFi protocol BitStable in one article, how to participate in the token sale?

BitStable, a cross-chain DeFi protocol based on Bitcoin

According to the official website of BitStable, BitStable is a decentralized asset protocol based on the Bitcoin network. Anyone can generate $DAII stablecoins for the mortgage assets of the Bitcoin ecosystem through this platform anywhere. BitStable has a dual-token system and a cross-chain compatible structure, and its tokens are $DAII and $BSSB.

$DAII is a stablecoin (BRC 20) whose value and stability comes from the robustness of the Bitcoin ecosystem assets, including BRC 20, RSK, and the Lightning Network, among others. In addition, in BitStables vision, $DAII can also bring the Ethereum community into the Bitcoin ecosystem with its cross-chain capabilities. The total supply of $DAII is 1 billion.

$BSSB is the platform’s governance token and is used by the community to maintain the system and manage $DAII. BitStable will also incentivize $BSSB holders through dividends and other measures.

The total supply of $BSSB is 21 million, of which, in addition to 50% being publicly sold on Bounce Finance, the team will hold 5% of $BSSB (6 months locked and 15 months linear unlocking), airdrop quota It will account for 3.5%, staking rewards will account for 36.5%, and LP will account for 5% (locked indefinitely).

DAII module

The DAII module in the BitStable protocol is a cornerstone feature designed for generating and managing DAII stablecoins on the Bitcoin blockchain. Given the limitations of Bitcoin in terms of smart contract functionality, the DAII module focuses on a simplified minting and burning process using ORDI assets in the initial stages.

minting and redeeming

Users can use assets approved by BSSB Governance as collateral to mint DAII (only ORDI and MUBI were supported in the early stage). This process involves locking ORDI into the BitStable protocol on the Bitcoin blockchain.

Understand the Bitcoin DeFi protocol BitStable in one article, how to participate in the token sale?

When users need to redeem collateral or USDT on the Ethereum chain, they need to redeem $DAII on the BitStable platform to restore $DAII to balance.

Understand the Bitcoin DeFi protocol BitStable in one article, how to participate in the token sale?

Cross-chain and mining

Additionally, DAII minted on the Bitcoin blockchain can be bridged to Ethereum as an ERC 20 token, and this cross-chain functionality enhances DAII’s liquidity and usability within the broader crypto ecosystem. Users who obtain $DAII on the Ethereum chain can use stablecoins such as USDT or USDC for one-to-one replacement, and then cross-chain to the Bitcoin chain to participate in economic activities.

BitStable has partnered with MultiBit Bridge for cross-chain transfers between Bitcoin, EVM, and other L1s.

To participate in mining and receive rewards, users need to use the MultiBit bridge to bridge their $DAII back to the Bitcoin blockchain. This process ensures that mining activities are securely anchored to the Bitcoin network. Rewards for mining activities are distributed in BSSB, aligning incentives with the governance and stability of the BitStable ecosystem.

Users can bridge their $DAII back to Ethereum as an ERC 20 token. This return process is crucial for users who wish to exchange DAII for USDT or participate in the Ethereum DeFi protocol. On Ethereum, users can exchange their DAII for USDT, completing the cycle of cross-chain interaction and providing a seamless user experience.

Overcollateralization and liquidation

BitStable stated that it will set an over-collateralization rate that is relatively safe and difficult to liquidate based on the price fluctuations of the collateral; assuming the over-collateralization rate is 50%, this means that users can only obtain $DAII of 50% of the collateral value. Although the overcollateralization rate is set, BitStable will still set the liquidation plan as a safety plan and will set the health factor as a reference.

Pledge and liquidation formula calculation (taking collateral as an example)

If ordi’s overcollateralization ratio is 80%

Maximum buildable DAII quantity = ordi quantity * ordi price * 20%

Health coefficient = [1-Build DAII value/(ordinal number * price) + 0.2]* 100

Staking ordi requires 80% overcollateralization. For example: Assume 1 ordi = 100 USDT, that is, staking 1 ordi can get 20 DAII. At this time, the health factor is [0.2+(1-20/100)]* 100 = 100

If the user only builds 10 DAII, the health factor at this time is [0.2+(1-10/100)]* 100 = 110

When the ordi price drops to 50 USDT, the health factor is: [0.2+(1-20/50)]* 100 = 80

When the ordi price drops to 20 USDT, the health factor is: [0.2+(1-20/20)]* 100 = 20 (forced liquidation is required)

DAII mining

$BSSB is the platform’s governance token and is used by stakeholders to maintain the system and manage $DAII. Holding BSSB can obtain platform income dividends and voting rights, and you can also have certain acceleration rights in the early stage.

Users can stake $DAII in Farm to obtain $BSSB. It should be noted that Farm only runs on the Bitcoin chain, so when the users $DAII is exchanged for USDT on the EVM chain, MultiBit still needs to be used to pledge $DAII (ERC 20) on the chain.

If you want to obtain higher mining income, you can also pledge $BSSB to obtain boosted equity and increase the equity weight of $DAII.

More information

The future roadmap is written in BitStables white paper. BitStable will integrate with Rootstock (RSK) to bring Ethereum-like smart contract functionality to Bitcoin-based DAII. This allows for the development of complex, decentralized financial instruments and automated governance processes that enhance the functionality of the protocol while maintaining the inherent security of the Bitcoin blockchain.

Deployment on RSK will involve building a series of interconnected smart contracts. These contracts will manage various aspects of the DAII stablecoin, such as staking, issuance, redemption and governance. BitStable will ensure a high degree of automation, security and transparency in its operations by adopting a structure similar to MakerDAO.

After that, BitStable plans to integrate Taproot and will combine Taproots Schnorr signature to enhance the DAII transaction structure to make it more space efficient and cost-effective; and utilize Taproots Merkelized Alternative Script Tree (MAST) and Pay-to-Taproot ( P 2 TR) function to provide DAII with more versatile and private transaction options.

Currently, BitStable’s official Twitter account has not yet appeared, and BlockBeats will continue to pay attention to follow-up information.

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