BoringDAO — — The pivot of the DeFi World🌎!
Hey, all BTC Holders, and LTC/BCH/DASH/ZEC/EOS Holders. As you may have known, WBTC and RENBTC have solidified their position mainstays in DeFi. There is no doubt that the Ethereum DeFi has become so popular ever. But surprisingly, no yield farming program has targeted tokenised assets. There is a metric ton of non-ERC20 assets just laying around doing nothing on their chains. It is an untapped resource of TVL! Taking YFI as a typical example, they are providing ETH product, Vault, with APY≈80%. Nevertheless, the APY of holding BTC is ≈0%, and there is NO YFI on BTC. Don’t you feel bored with them?
With only 0.3% of all bitcoin on Ethereum and DeFi booming, the opportunity for decentralised bridges between two chains is hard to ignore. All of these non-ERC20 assets are eager to be plated on the Ethereum DeFi network. Upon that, we will launch BoringDAO as the next step forward; it is an EVOLUTION! We have introduced Real-DAO features that we believe boost the structure of the protocol, as well as provide further benefits to the users participated.
Of course, one of the common questions that people would enquire is: “How does cross-chain work in BoringDAO ?”.
- User Alice transfers x amount of BTC assets to the specified custody multi-signature address and provides an ETH address.
- After confirming the asset’s 🧾receipt in the form of BFT, the custodian will mint and issue the equivalent x amount of bBTC (Boring BTC-an ERC-20 asset) on the Ethereum blockchain.
- The custodian transfers bBTC to the Ethereum address provided by user Alice and charges the minting commission at 0.2%.
The minting process is shown:
- If the user Bob wants to redeem bBTC as BTC asset at some point, he should transfer x amount of bBTC asset to the designated custody multi-signature address and provide a BTC address.
- After confirming the asset’s receipt in BFT, the custodian will destroy x amount of bBTC on the Ethereum blockchain.
- The custodian will then initiate a multi-signature withdrawal request. After obtaining the multi-signature approval, transfer BTC to the BTC address provided by user Bob, and charge a redemption commission at 0.2%, which should only be paid by b token(BOR).
The redemption process is shown:
Wait! Until now, some people would trigger by this:” The mechanism is similar to WBTC!?”
Yes and NO! We both build bridges between non-ERC20 and Ethereum assets. However, with BoringDAO, we enhance the security, decentralisation, efficiency, openness; and more importantly, unlike WBTC, we appreciate Real-DAO as our core value!
In the past, the industry was exploring the security of assets under custody in several aspects.
- Reputation dimension — For example, HBTC of Huobi and BTC of Binance (BEP-2) take advantage of the reputation of a single node. Huobi and Binance are trusted by people, so they are made custodians.
- Technology dimension — e.g., Liquid, WBTC. It consists of many individuals; assets are managed through multi-signature. Multi-signature, that is, multiple signatures, is a cryptographic technology. It stipulates from the dimension of cryptographic technology that when assets need to be transferred, the transfer may be carried out with several people’s consent in the system.
- Pledge dimension — e.g. MakerDAO  and Synthetix . Behind each Dai, pledge exceeding 100% is set as a guarantee. People trusting Dai; actually, trust the over-pledged assets behind it.
BoringDAO, as a hub, comprehends the three. It adopts the triple dimensions of credit + technology + pledge (1+1+1>>3) to ensure asset security to the greatest extent possible. First of all, The asset custodians in Boring are composed of a series of node parties with a high community reputation and BOR pledge amount. They are responsible for helping users complete the blockchain-powered multi-signature custody of other blockchain assets and ensuring the security of the underlying assets minted. Meanwhile, these nodes jointly manage wallets through multi-signature. Moreover, both the custodians and the tunnel operators have pledged or even over-pledged a certain amount of assets. In the event of a Black Swan incident, they can still compensate the holders proportionally through clearing.
NO ONE CAN DO EVIL😈.
BoringDAO Miracle Exchange Tunnels
Nevertheless, what if I don’t want to pledge? No, problem! Someone would do it for you!
Tunnels are ‘dug’ by the community. The thicker the ‘walls’ (pledge amount) of the tunnel, the higher TVL!
Each tunnel has “operators”, and their existence is to help better users complete the swapping in the tunnel.
Explanation on participating in tunnel operation (pledge): Users participating in tunnel pledge will become operators of the tunnel. For example, once the proposal is passed, the proposer will become the tunnel’s initial “operator” because he has deposited BOR as a pledge for the tunnel at the proposal stage.
The earnings, 70% of the tunnel commission charges, that you’ll receive from pledging will be proportional to the amount of BOR you have pledged versus the total amount of BOR pledged 📈.
💸 Reward Distribution
The minting commission m of the tunnel will be shared by three roles, namely:
· Core development team — 15%
· Asset custodians — 15%
· Tunnel operators — 70%
🤑BoringDAO — — You deserve it!
💡Moreover, don’t miss out BoringDAO’s attractive incentive model!
· ⛏Minting is Mining! ‘Minting harder to mine BOR’
· 👨🌾Boring Farm! ‘The one everyone Loves’
In the follow-up articles, we will continue to talk about minting mining and Boring Farm. Please keep your attention on us.
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