DeFi (Decentralized Finance) is the hottest topic in the blockchain industry in 2019, attracting many technical research and capital. Value locked in Ethereum’s DeFi ecosystem has reached a total of $616.8 M from $274.6 M at the beginning of the year, with hundreds of thousands of wallet addresses also participating.
This year, we also look at some achievements within the DeFi field:
- Tokenlon DEX launched a three-month transaction volume of $59,696,279, with 25,000 users, and Tokenlon topped DEX rankings a couple of times.
- The transfer volume of stablecoins in the past 30 days was $994,722,238, of which USDT (ERC20) accounted for 16% of the whole network.
- At the same time, the application brings millions of dollars in traffic to DeFi applications such as partners Maker CDP and Compound.
Being deeply involved in Ethereum’s DeFi ecosystem, you will find that BTC has good liquidity on centralized trading platforms and financial services, while DeFi applications on Ethereum lack of quality liquid assets as collateral. Things that cause typical financial applications like Maker CDP and Compound to have a hard time to scale further.
Comparing the market value of DeFi, ETH, and BTC, we find that the combination of the liquidity of BTC being placed in the DeFi ecosystem will have immeasurable potential.
What is imBTC?
Tokenized BTC is able to work with smart contracts, seamlessly integrate into decentralized transactions and financial services, while injecting liquidity into the Ethereum ecosystem.
Imagine that this programmable bitcoin you own will seamlessly interact with smart contracts, whether DeFi, staking, or DEXs. In addition, the token also has a 15s block confirmation time, as well as real-time earnings.
This is like bitcoin, but without the downsides of Bitcoin.
We at Tokenlon named the project’s token imBTC, which is an Ethereum Token issued with an 1:1 anchor to BTC. The holder can transfer, redeem, exchange imBTC as well as receive an income share of the Tokenlon platform fees while holding imBTC.
In order to give you a better understanding of imBTC, we will briefly introduce the following points.
Deposit to receive imBTC
If you want to get imBTC, you simply send BTC. It is that simple.
At the same time, you can also destroy imBTC through the DApp or directly call the smart contract. Just wait a moment and you will receive your BTC.
There is no authentication needed, no lock-up period, everything feels swift and easy.
We hope that the low friction in the process makes imBTC a financial asset that is more accessible for the general public, not just geeks.
Enjoy instant income
The tokens is accruing value which is added to the Token value.
Since storage costs and trading risks can make your blockchain assets volatile, with no interest rate mechanism to offset these costs, holding a token is not incentivized.
We wish that imBTC holders will benefit from the liquidity of imBTC. Therefore, we will distribute the transaction fee from purchasing imBTC on Tokenlon to users who hold imBTC.
When a user purchases imBTC at Tokenlon DEX, the smart contract deducts 0.3% imBTC as a transaction fee, and the commission will accumulate in the smart contract. Any user can initiate a dividend request through the DApp or directly to the imBTC smart contract. At this time, the smart contract will automatically pay dividends according to the imBTC currency ratio, and the wallet address holding imBTC will receive the corresponding interest.
imBTC Dividend Algorithm
Note: exchangeRate defaults to 1.
For example, Tokenlon issues 100 imBTC and Alice holds 10 imBTC. When Tokenlon receives 1 imBTC fee, exchangeRate is 1 * (100 / (100–1)) = 1.0101.
At this point Alice will receive a dividend of 10 * 1.0101–10 = 0.10101 imBTC, and her balance will be 10.10101 imBTC after the dividend.
Tokenlon DEX is based on the 0x smart contract. Its innovative mechanism creates a fast, best-price trading experience. The trading assets are completely controlled by the user, and the Token exchange can be completed quickly without recharging or withdrawing.
Users with imBTC can quickly trade tokens on the Tokenlon DEX, enriching your portfolio and spreading the risk of price fluctuations.
Trusted and transparent
The hosted address of the imBTC will be publicly released. Through the Proof of Reserve on the chain, all imBTC issuance and destruction can be clearly tracked, and the BTC reserve is guaranteed to be 1:1. Anyone can openly audit, fully transparent.
However, we admit that the current imBTC is still not perfect, as is the case with most blockchain financial products. Due to the limitations of blockchain technology, it is impossible to achieve both the ideal decentralization and ease of use.
Therefore, we choose to adhere to the principle of security and transparency, and temporarily use centralized hosting to make imBTC easy to use, so as to better popularize usage. At the same time, Tokenlon is also planning on how to transform centralized hosting into a DAO (decentralized autonomous organization) hosting solution that remains decentralized, yet easy to use.
We believe that with the development of blockchain technology, we can work hard to make decentralization a reality.
imBTC, as a Tokenlon project, is currently online on imToken 2.0.
Open imToken to experience transfer, redemption, redemption, etc. while holding imBTC, while enjoying instant benefits.
The birth of imBTC is not out of thin air, but based on the past experience and precipitation of the blockchain community. We sincerely thank WBTC, tBTC, EOS REX, Uniswap, Aragon, Polkadot and other projects for their continuous inspiration.
We look forward to imBTC coming from the community and giving back to the community, providing better financial application services for each user, and injecting new vitality into the ecology of Ethereum.