Bitcoin DAO
Revolutionizing DeFi with the Premier Decentralized Cross-Chain Stability Platform
Bitcoin DAO represents a pivotal advancement in blockchain technology, establishing itself as the architect of the inaugural fully decentralized cross-chain stablecoin, underpinned by the Ethereum blockchain's smart contract infrastructure. Our platform is adept at the seamless integration of BTC or BRC20 assets, into the Ethereum ecosystem, thereby heralding an unprecedented phase in decentralized finance (DeFi). The innovation of engineering a stablecoin via cross-chain technology is a testament to our dedication to transforming the paradigms of liquidity and asset management within the DeFi realm. Bitcoin DAO transcends the mere facilitation of asset interoperability across blockchains; it aspires to redefine the benchmarks for stability and decentralization within the digital currency landscape.
What is “Mining” with Bitcoin DAO?
Robust Stability
Our stablecoin, SDAI,which means Satoshi DAI, is anchored in the Ethereum ecosystem, drawing its explosive value and steadiness initially from BTC and ORDI (BRC20). This backing will expand to incorporate additional assets, ensuring a solid foundation for SDAI.
SDAI functions as a reliable stabilizer in the unpredictable cryptocurrency landscape, positioning it as a prime choice for trading and long-term investments.
Market Anchor
Interoperability and Reach
The cross-chain functionality of SDAI is not just beneficial for Ethereum enthusiasts but also paves the way for wider blockchain integration, promoting a more unified and versatile digital asset environment.
SDAI Mining in Bitcoin DAO: A Cross-Chain Approach
Bitcoin DAO introduces a unique SDAI mining process, focusing on leveraging BTC and ORDI as the primary collateral assets. This innovative approach is central to our objective of enhancing cross-chain interactions and broadening participation in the blockchain domain.
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At Bitcoin DAO, users initiate SDAI mining by staking wrapped BTC(wBTC) or wrappedORDI (wORDI). This forms the core of our collateral system, enabling the generation of SDAI.
Staking with wBTC or wORDI
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Our platform features a bridge mechanism that allows the conversion of BTC/ORDI to the ERC20-compatible wBTC/wORDI. This conversion is essential for integrating BTC/ORDI into the Ethereum blockchain ecosystem.
Conversion from BTC/ORDI to wBTC/wORDI
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Initially, Bitcoin DAO will exclusively accept wBTC and wORDI as collateral for SDAI mining. This focused approach ensures stability and efficiency in the early stages of our platform. However, plans are in place to expand the range of accepted collateral in the future, enhancing the platform's flexibility and appeal.
Commitment to wBTC/wORDI Collateral
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A significant portion of SDAI will be allocated for cross-chain transactions, particularly to Ethereum. Such integration facilitates seamless transition and activity across the Ethereum and Bitcoin DAO platforms, effectively widening the utility and reach of SDAI in the digital currency market.
Cross-Chain Integration and Exchange
Our streamlined process not only simplifies the acquisition of SDAI but also ensures a robust and efficient framework for cross-chain asset integration, setting the stage for a more diverse and comprehensive DeFi ecosystem.
Detailed Overcollateralization and Liquidation Mechanics in Bitcoin DAO
Bitcoin DAO employs a comprehensive system of overcollateralization and liquidation to maintain financial stability and protect against market fluctuations to BTC and Brc20 assets. This system is outlined in detail below:
Overcollateralization Rate
Our platform sets a specific overcollateralization rate to safeguard against the volatility of collateral assets. For example, with an overcollateralization rate of 50%, this implies that users are eligible to receive SDAI equivalent to only 50% of the value of their staked wBTC/wORDI.
- Formula: Eligible SDAI=Value of wBTC/wORDI×Overcollateralization Rate
- Example: If you stake wORDI worth 100 USDT at a 50% overcollateralization rate, you can mint 100×0.50=50 SDAI.
Health Factor
The Health Factor is a crucial metric that determines the safety margin of a user's staked assets and is used to assess the risk of liquidation.
- Calculation: Health Factor=(1−Value of minted SDAIValue of wORDI staked+Safety Margin)×100
- Safety Margin: This is a constant percentage added to the formula to provide an additional buffer against market volatility.
wORDI to SDAI Conversion with Health Factor
The conversion of wORDI to SDAI takes into account the overcollateralization ratio and the resultant Health Factor.
- Overcollateralization Example: Assuming an 80% overcollateralization ratio, the maximum SDAI obtainable is 20% of the wORDI’s value.
- SDAI Generation Formula: Max SDAI=wORDI Quantity×wORDI Price×20%
- Health Factor Calculation: Given 1 wORDI = 100 USDT, for minting 20 SDAI, the Health Factor is calculated as [1−(20/100)+0.2]×100=100.
- If only 10 SDAI is built, the Health Factor changes to [1−(10/100)+0.2]×100=110.
Liquidation Trigger
Liquidation occurs when the Health Factor falls below a predetermined threshold due to a decrease in the value of wORDI.
- Example: If the price of wORDI drops and the Health Factor reaches a critical low point (e.g., 20), it triggers the liquidation process to mitigate risk.
This meticulous approach to overcollateralization and liquidation ensures that Bitcoin DAO's system remains robust and responsive to market dynamics, safeguarding both the platform and its users.
DAO Governed Factors in Bitcoin DAO
While the outlined system of overcollateralization and liquidation in Bitcoin DAO provides a robust framework for financial stability, several key elements within this system are subject to the governance and decision-making of the DAO community. These factors include:
By involving the DAO in these key decisions, Bitcoin DAO ensures that its financial mechanisms are not only resilient but also reflective of the community's insights and preferences. This collaborative approach enables the platform to adapt to the ever-evolving landscape of the cryptocurrency market, aligning with the ethos of decentralized governance and community-driven innovation.
Overcollateralization Rate
The specific rate of overcollateralization is a crucial parameter that can be decided by the DAO. This rate directly impacts how much SDAI users can receive against their wBTC/wORDI collateral. DAO governance allows for dynamic adjustment of this rate in response to market conditions and risk assessments.
Health Factor Safety Margin
The safety margin within the Health Factor calculation is another critical aspect governed by the DAO. The DAO can modify this margin to provide a buffer against market volatility, thereby influencing the overall risk profile of the system.
Liquidation Trigger Threshold
The Health Factor level at which liquidation is triggered is a vital parameter that the DAO has the authority to set. This threshold is essential for balancing the system's stability with the need to protect users' assets in a rapidly changing market.
Additional DAO-Governed Factor: Swap Fees and Revenue Sharing
Swap fees for converting between wBTC/wORDI and BTC/ORDI are determined by the DAO, with revenue sharing among DAO token holders, ensuring fair profit distribution.
Redemption Process in Bitcoin DAO
Users can redeem their collateral or convert holdings to wBTC/wORDI via a streamlined process on the Bitcoin DAO platform, crucial for maintaining SDAI balance and liquidity.
SDAI Redemption: Users who wish to reclaim their collateral need to initiate a redemption process on the Bitcoin DAO platform. This involves the return of SDAI to the platform, which then unlocks the equivalent value of the wBTC/wOrdi.
Reclaiming Collateral:In the case of reclaiming collateral, the equivalent amount of wBTC/wORDI (or other supported collateral in the future) is released back to the user's wallet, effectively 'unwinding' the original staking transaction.
Balance and Liquidity: The redemption process is integral to maintaining the balance and liquidity of SDAI on the Bitcoin DAO platform. It ensures that users have the flexibility to manage their investments and positions effectively, in line with their financial strategies and market movements.
SDAI Farming and BTO Acquisition in Bitcoin DAO
Bitcoin DAO innovates with SDAI farming, linking it to its governance token, BTO, crucial for system management and decision-making. Here's a concise overview:
As the governance token, BTO enables holders to influence platform decisions and earn a share of the income. Early BTO holders might receive added benefits, boosting their platform engagement and rewards.
BTO's Role
- Stake SDAI: Users can participate in SDAI farming by staking their SDAI tokens in the 'Farm' section of the platform. This process is straightforward and operates exclusively on the Ethereum blockchain.
-Acquire BTO: Through this staking, users earn BTO tokens. The accumulation of BTO not only represents a share in the governance of Bitcoin DAO but also entitles users to a portion of the platform's income dividends.
Earning BTO through SDAI Farming
Boosting Mining Income
- Stake BTO: For users interested in maximizing their returns, there's an option to stake BTO tokens back into the platform.
- Enhanced Rewards: This action boosts their equity in the system and increases the weight of their SDAI stake, leading to potentially higher mining incomes.
Allocation of BTO Tokens:
Pre-Sale: 30% of the total supply is allocated for pre-sale, providing early investors with the opportunity to participate in the Bitcoin DAO ecosystem.
Team and Development: 5% is reserved for the team and ongoing development. This portion is locked for 12 months, followed by linear vesting over 24 months, to align the team’s interests with the long-term success of the platform.
Marketing: 5% is dedicated to marketing efforts, crucial for raising awareness and adoption of Bitcoin DAO.
Liquidity Provision (LP):20% is allocated for providing liquidity, which is vital for ensuring a healthy and efficient market for BTO transactions.
Staking Rewards:A significant portion, 40% is set aside for staking rewards, incentivizing users to stake their SDAI and engage with the platform.
Tokenomics of BTO in Bitcoin DAO
The BTO token, central to the Bitcoin DAO ecosystem, has a well-defined tokenomics structure designed to balance the distribution of tokens for various purposes, ensuring the long-term sustainability and growth of the platform. Below is an overview of the tokenomics for BTO:
Total Supply:
1,000,000,000
