Since Boringdao was created, we have always stick to two paths. The first is to integrate oBTC into the DeFi ecosystem, polish the product, and finally build a completely decentralized asset channel. The second is to make a best-in-class product with optimal user experience.
In the exchange process, OBTC enjoys a relatively high speed of minting and the additional BOR bonus, making it much better than other Wrapped BTC. But the waiting is quite unbearable, and the minting process is still complicated.
A faster, simpler and more direct exchange channel is always what BoringDAO wants for users. As oBTC gradually accesses with more and more decentralized protocols, Barter, which we designed for a long time to enable rapid swap of oBTC becomes possible.
What is Barter?
The literal meaning of Barter is to exchange things for things without selling them as money.
The Boringdao Barter is simply a function that allows users to convert WBTC or RenbTC to oBTC directly, and when converting, they can also receive BOR rewards similar to those for minting oBTC.
Two Simple Steps to Convert oBTC:
1. Enter the exchange amount, click “Approve”, wait for the wallet to confirm;
2. Click “Barter”, and wait for the wallet to confirm.
Finally, after the Ethereum block confirmations, you can receive oBTC and BOR rewards.
Barter function enables users to exchange their RenBTC and WBTC into OBTC in a better, faster, and less costly way, without missing the oBTC minting reward.
Before the Barter function being introduced, users with WBTC who want to convert to oBTC and get BOR at the same time have to go through a process of converting WBTC to BTC and to oBTC, which takes a long time, a lot of transaction fees, and that is very inconvenient.
Barter does this in two simple steps. Users may wonder, how does this magical optimization work? The principle is not complicated. Based on Curve oBTC Metapool, Barter realizes the atomic exchange between WBTC, RenBTC, and oBTC. And the Barter function is equipped with 1% of the total BOR (i.e. 2000 BOR) as the rewarding pool. These BOR are drawn from the original reward pool for minting, which is 30% of the total BOR volume.
At present, Barter’s exchange reward is basically the same as oBTC’s minting reward. Data show that by converting each WBTC or RENBTC into oBTC through Barter, users can roughly obtain a reward of about 0.1 BOR. Of course, the specific amount of BOR to obtain is closely related to the quotation of BTC and BOR, this is why the Boringdao team also introduced Chainlink as the decentralized oracle of the project. For the calculation of BOR reward, Chainlink provides real-time and accurate quotations, which can ensure that users who exchange for oBTC by Barter can get fair rewards.
Why Convert into oBTC
There are mainly two reasons why you should convert your WBTC or RenBTC into oBTC.
1. Revenue, more revenue
With the integration of oBTC into DeFi ecology, OBTC has gradually become the BTC token with the highest interest yield in the Ethereum network. And with so many ways to generate interest, users can choose according to their risk preference.
Sushiswap + Alpha Liquidity Mining, High Risk and High Return
If you have a high risk tolerance, Sushiswap liquidity pools of oBTC and BOR have been added to the Sushi Onsen project. Only a few excellent projects can be listed to the official Onsen pool where Sushi rewards are offered by the Sushi team.
LP can use oBTC and ETH to provide liquidity in the oBTC/ ETH exchange pool on Sushiswap, so as to gain about 87.54% of Sushi’s liquidity mining reward. Meanwhile, BOR can also be injected into the BOR/ETH liquidity pool to get rewards with an APY of about 75.57%. As the price of Sushi goes up and the total number of rewards stays the same, the yield gets higher.
Of course, Alpha has partnered with Boringdao, and you can also automate farming through Alpha Homora.
Curve + Harvest — Automated Farming with Slightly Lower Yields but Safe Principal
For investors who don’t want to take on that much risk, OBTC also offers other interest-earning options. As mentioned above, oBTC has also integrated with Curve, and Harvest. finance has provided the Staking strategy of Curve liquidity pool. The AMM algorithm adopted by Curve greatly reduces the impermanence loss, mainly thanks to the combination of addition and multiplication through parameter adjustment, which makes the curve of Curve basically a straight line within a reasonable exchange range and makes it difficult for the pool to have large deviation.
Under Harvest’s Staking strategy, users can mine BOR, FARM, and CRV all at the same time while suffering very little impermanence loss. The APY can reach 26.22%. Basically, this can be considered risk-free earning.
Meanwhile, Farmers’ BOR can be used for other purposes, and Boring Farm offers BOR staking mining pool, with no impermanence loss at all and an APY of 102%. Huobi Farm is offering BOR Staking of nearly 1000%+ APY for a 7 day period.
Boring Farm Yields well, and No Impermanence Loss
Certainly, some users may have a lower risk appetite and do not accept impermanence losses at all. Well, oBTC can also make around 27.15% pure staking revenue in the Boring Farm.
At the same time, BOR earned can also be deposited in the pool where Boring Farm provides BOR Staking and Mining, earning an annualised return of 101.48%. Of course, assets in the Boring Farm serves as additional security collaterals for the OBTC channel. There is no loss at all ignoring extremely rare cases, which is much less likely compared with impermanence loss or a loss of principal.
2. Safe, and Safer
In the world of cryptocurrencies, ownership of the private key determines the ownership of assets. As an asset bridge, BoringDAO will inevitably deal with asset precipitation of the original asset chain. The security and private key control of these assets determine whether the cross-chain assets can be converted back to the assets on the original chain intact. This problem is common for all centralized ERC20 BTC Bridges. What happens if a centralized team holding a BTC pool private key lost the key or get it stolen? Even with third-party hosting, the management of the multi-sig private key is still centralized. It seems safe but not at all from the root of the problem.
To solve this problem and make BoringDAO’s asset channel more secure, the ultimate goal of BoringDAO since its creation has been to achieve a permanent and fully decentralized asset bridge. In terms of private key custody, the use of P2SH multi-signature technology does not need to be repeated, and for multi-signature private keys, a number of credible encryption community members will gradually be introduced for decentralized custody. And in the future, as the BoringDAO community grows, the user community will also have a multi-sig private key. This decentralized management model for multi-signatures can effectively avoid risks of the evil done by centralized teams in the face of an immense amount of wealth.
In addition, with complete decentralization, we can also avoid the risk of unknown asset sources or contamination by illegal assets caused by unidentified capital flows. With the tightening of global supervision of cryptocurrencies, especially the launch of Travel Rule, the due diligence procedures of major exchanges and investment institutions for users such as KYC and AML will gradually be improved to the same as traditional finance. One of the most critical issues in due diligence and anti-money laundering processes is the source of funds. The original features of blockchain are transparent and traceable from the asset generation to all transactions, and the source of the asset is very easy to access and explain.
As we all know, the interaction between the user and the chain is easy, but the interaction and synchronization between two different chains are much more difficult. Except for BoringDAO, other centralized asset bridges have not realized good interaction and synchronization chain to chain so far. This means, if you use their asset bridge for BTC cross-chain transformation, your assets will be integrated into an asset pool and then to the address of another chain. The process is not transparent, and in the absence of synchronization, assets cannot be traced. Furthermore, if the centralized asset pool has been injected with illegal assets, such as terrorist -related currencies, assets across the chain are actually contaminated. This will lead to the problem that the source of investors’ assets can not be traced, and assets are likely to be frozen and users may eventually suffer losses.
BoringDAO team is totally aware of the problem from the very beginning, and that’s why we use the OP Return function. If a user needs to mint oBTC, he needs to write his Ethereum address in the OP-Return of BTC. The cross-chain interaction between the two chains can be synchronized and completed transparently. The flow of funds to be fully traceable, avoiding the risk of assets being contaminated or stolen in the exchange pool. Instead of any centralized server, BoringDAO uses the Bitcoin network as the settlement server. This is one major step of Boringdao’s decentralization.
With the launch of Barter, members of the crypto community can easily and quickly convert their WBTC and RenBTC to oBTC and receive BOR rewards at the same time. oBTC will bring investors diversified currency-based investment channels with good returns. And as a Bitcoin asset, oBTC on the Ethereum network is more secure, transparent, and decentralized, which will definitely free investors from tainted assets or the risk of centralization.