In November 2020, BoringDAO officially launched along with our “tunnel” mechanism allowing for Bitcoin to safely run on the world’s soundest smart contract network, Ethereum. Users who put their Bitcoin in this tunnel, first have it wrapped with BoringDAO’s triple security layer (Multi-sig + Over 100% Reserve + Insurance), then are given oBTC, our version of BTC on Ethereum. With oBTC, users can then use their Bitcoin to earn considerable APYs on dozens of DeFi protocols such as Curve, Sushi and Boring Farm.
Then, in February 2021, BoringDAO introduced V2, and that asset bridge — or rather “tunnel” — became a network of highways. Alongside Bitcoin, cross-chain support was given to Litecoin and Dogecoin, and we launched on Binance Smart Chain, Polygon, and Loopring. Alongside of all of this, a new governance module was launched, making BoringDAO community governance more efficient.
As of May 12, 2021, as an asset bridge, BoringDAO’s multi-chain TVL has exceeded $100M. The cumulative minting amount of oBTC has exceeded 5,000; the cumulative minting amount of oLTC has exceeded 50,000, and the amount of oDoge has exceeded 2.5M, generating 1 million dollars in revenue for the BoringDAO ecosystem. At the same time, BOR holders are actively participating in community governance and the community has put forward 7 community proposals, with 6 approved and 1 rejected.
Now, we are pleased to announce that BoringDAO is about to start its V3 upgrade that will make our platform even more robust.
🌀BoringDAO V3 consists largely of 4 new products and 1 new feature:
1. Shadow Bitcoin
-A Fully non-custodial BTC-pegged asset.
-Users’ BTC are locked in their own wallets and a “shadow asset” is issued on the Ethereum network.
-Users can borrow oBTC using Shadow Bitcoin.
-Fully decentralized and secure.
- Allows tokens (ERC-20, BEP-20 & etc.) to teleport freely among different blockchains.
- Uses native, rather than wrapped tokens.
- Allows for cross-chain stablecoin swaps, ex. DAI (ERC-20) ⇄ BUSD (BEP-20).
3. Multi-Chain Support
-BoringDAO will support more blockchains, including: Avalanche, Oasis, NEAR, Harmony, Solana, Polygon, Polkadot, OKExChain, HECO, xDAI and more.
-BoringDAO will also wrap more assets, including: Filecoin, DOT, Sol and more.
-Ethereum will be the hub of BoringDAO, and all chains will be relayed by Ethereum.
-Transfer NFTs from Ethereum to other blockchains.
- Send NFTs from other blockchains to Ethereum, allowing them to be sold on platforms such as Opensea.
-Allows fast transfer of funds among different Layer 2 solutions
-Implements the solution proposed by Vitalik to enjoy the best compatibility in the form of market makers.
Imagine a brand new BTC-anchored currency — hosted completely by yourself, without any third party involvement. In other words, it is no longer an anchored asset, but has become what we term, a “shadow asset.”
Users can use the script developed by BoringDAO to lock UTXO in their own wallets and simultaneously issue an equivalent amount of shadowBTC, an ERC-20 token on Ethereum. Nobody can move the underlying Bitcoins without the user’s signature, so it is a completely non-custodial Bitcoin-anchored currency. This will be the first implementation of shadow assets in the crypto space and all of this will be done using the highest levels of security and decentralization.
Users will be able to use shadowBTC as collateral on the BoringDAO platform to borrow oBTC with a proportion of 50% for available use. For example, users staking 1000 shadowBTC can borrow 500 oBTC.
During the redemption process users must burn an equivalent amount of shadowBTC on Ethereum to unlock the UTXO on the Bitcoin blockchain. Keys of the UTXO lock are jointly kept by users and multi-sig parties of BoringDAO oBTC. Each person keeps a few keys to ensure the highest fault-tolerance and that no one can unilaterally transfer these BTC away.
Economic model: When minting shadowBTC, a fee is charged and there are also fees to be paid when returning shadowBTC and unlocking the script. Fees will be used to reward BOR holders after covering the cost of signatures.
Currently, BOR can transfer freely between Ethereum and Binance Smart Chain. In V3, a new BoringDAO bridge, called “oPortal”, will allow more ERC-20 Tokens to transfer among the blockchains supported by BoringDAO freely and quickly.
These blockchains include Avalanche, Oasis, Harmony, NEAR, and more. With oPortal, we are opening the door — or portal — for game changing DeFi possibilities, such as a “multi-chain Curve”. This would allow you to exchange Ethereum DAI to BSC BUSD with the best liquidity in the entire blockchain universe. For more details, please check here.
Economic model: Use of the oPortal is permissionless but incurs a fee. This fee is paid out to operators who run the bridge as well as to Pledge Provider (PP) token holders as rewards.
3. Multi-Chain Support
Until now, BoringDAO has supported asset bridging onto the Ethereum and Binance Smart Chains, but V3 will introduce many more, including Polkadot, Avalanche and Oasis. With this, our assets — currently BOR, oBTC, oLTC and oDoge — will be free to transfer from ETH to wide variety of other chains.
Economic model: BOR moved cross-chain will incur a fee that will be distributed partially to node operators, partially to be burnt. For oTokens, part of the fees will be distributed to the node operators and part will be distributed to the Pledge Provider (PP) token holders as rewards.
4. NFT Bridge
BoringDAO will develop an NFT Bridge allowing these assets to be freely transferred across different blockchains. During the transfer, the bridge will ensure that your NFT ID remains the same on both chains. At the same time, there will be a dedicated front-end page to allow you to monitor multi-chain NFTs.
Economic model: Fees will be charged and put into reward pools for BOR holders.
5. L2 Bridge
As mentioned in Vitalik’s proposal, BoringDAO will try to develop funding bridges among different Layer2 solutions, such as Optimistic Rollups, ZK-Rollups, and so on.
Initially this will support mainstream assets such as ETH and DAI, but more were be added soon after. Based on this kind of bridge, a one-second span between two Rollups can be achieved without worrying about the challenge period.
Economic model: L2 Bridge will eliminate the challenge period of L2 and save more time, thus fees will also be charged. These fees will be used to repurchase and burn BOR.
Audit and Bug Bounty
Although our DAO is named “Boring”, the very opposite is the case, especially with V3 and its many new features. As part of the launch of V3, we will conduct a full and in-depth third-party audit. Meanwhile, the bug bounty previously proposed with Immunefi remains valid with grants totaling hundreds of thousands of dollars.
At present, ShadowBTC, oPortal and the NFT bridge have all been implemented on testnet, and are expected to be ready for release by late May or early June.
In addition, although multi-chain support depends greatly on external factors — namely the status of those chains themselves — BoringDAO aims to support more than 10 new chains within the next quarter. As for L2 Bridge developments, we hope to have it running on testnet in Q3 2021, and official launch on main net in Q4.
At BoringDAO, we continue to lay down the necessary tunnel, bridge, highway, and portal, infrastructure for a multi-chain DeFi future. With V3 you are about to witness new DeFi possibilities that you never thought were possible.