The BRCFi application is favored by capital. How to seize the new trend of the Bitcoin ecosystem?

Written by: Grapefruit, ChainCatcher

With ORDI, SATS, RATS and other BRC20 TokenWith the continuous rise of Bitcoin, the popularity of Bitcoin ecology has also increased. Bitcoin ecological applications and infrastructures around Ordinals and BRC20 have sprung up like mushrooms after rain.

According to data from the encryption platform Rootdata, since December, multiple applications within the Bitcoin ecosystem have announced that they have received financing.

On December 20, ALEX Lab, a one-stop DeFi service platform based on Bitcoin Stack, received a strategic investment from LK Venture, a subsidiary of Linekong Interactive.

On December 18, Bitcoin BRC ecological aggregation tool set Biis announced that it had received strategic investment from crypto investment institution CGV; DID market aggregator GoDID completed a new round of financing led by NGC with a valuation of 30 million. A few days ago, GODID's sub-platform bdid.io focused on the BTC ecosystem and issuedToken BDID.

On December 16, Tap Protocol, a Bitcoin infrastructure project used to build OrdFi applications, completed a $4.2 million financing round led by Sora Ventures; on December 14, bitSmiley, a Bitcoin stablecoin lending protocol, completed a round of financing led by ABCDE and OKX Venture; on December 11, Liquidium, a Bitcoin Ordinals lending solution, completed a $1.25 million Pre-Seed round of financing, with participation from Bitcoin Frontier Fund, Sora Ventures and others.

On December 7, the cross-chain protocol MAP Protocol announced that it had received strategic investment from DWF Labs and Waterdrip Capital, and had achieved BRC20 cross-chain; the Bitcoin staking project Babylon announced the completion of an $18 million Series A financing round, led by Polychain Capital and Hack VC, etc.

In less than 2 weeks, a total of 8 Bitcoin ecosystem-related projects have received financial support from crypto capital, covering cross-chain, lending, staking and other products, and all of them are financial application products built around new assets such as Ordinals and BRC20.

随着资金的涌入，比特币生态的财富效应持续发酵，从 BRC20 铭文的炒作逐渐演化为围绕这些资产构建的基础设施及应用类产品等，如比特币生态的 IDO 平台 Bounce Finance 代币 AUCTION、跨链桥 Multibit 代币 MUBI、稳定币 BitStable 治理代币 BSSB 等近 7 日涨幅都超过了 100%。在资本的大力扶持下及比特币生态应用资产的暴涨推动下已催生出一个新赛道 BRCFi。

BRCFi refers to the DeFi ecosystem driven by BRC20 tokens, and DeFi application products built around BRC20 and Ordinals assets. At present, the BRCFi track has launched multiple cross-chain bridges, stablecoins, IDO platforms, lending and other suite products. So, what are the representative products of BRCFi applications? How is the operation?

Bounce Finance's BRCFi suite: cross-chain bridges, stablecoins, IDO platforms, etc.

Bounce Finance (AUCTION) centralized auction platform takes off with the help of Bitcoin

Bounce Finance (AUCTION) was originally a multi-chain decentralized auction platform that provides services such as token issuance and NFT auctions, and simplifies the process of IDO for new projects. The platform was founded in September 2020 by Jack Lu and Ryan Fang, of which Jack Lu is also a partner at NGC Ventures. Born in the era of the full-scale explosion of DeFi applications, Bounce Finance applications are not outstanding, and as the crypto market has gone bearish, the platform has gradually faded out of the sight of crypto users.

But in November, the Bounce Finance platform quickly became popular because of the issuance of the Bitcoin ecosystem's cross-chain bridge Multibit token MUBI and the stablecoin BitStable token BSSB. After the IDO of the Bounce Finance platform, MUBI and BSSB increased by dozens of times. The wealth effect brought by these IDO assets also made the Bounce Finance asset issuance platform hidden behind the scenes the biggest winner, and was regarded by users as "the birthplace of the next ten-fold coin."

In the past month, three Bitcoin ecosystem project tokens have been successfully issued on the Bounce Finance platform. On November 12, the Bitcoin cross-chain bridge MultiBit asset MUBI was issued, with an IDO unit price of $0.00047 and a current price of $0.39, a cumulative increase of more than 1,000 times; on November 29, the public sale of the Bitcoin-based cross-chain stablecoin protocol Bitstable project token BSSB was launched, with each BSSB IDO costing about $0.27 and a current price of $9.5, a cumulative increase of about 40 times; on December 15, the DID service platform GoDID token BDID in the Bitcoin ecosystem was launched, with a public sale price of $0.0029 and a current price of $0.06, a return of more than 20 times.

Because of the successive IDO projects that have created wealth, Bounce Finance has become an IDO benefit platform in the Bitcoin ecosystem. After successfully issuing the Bitcoin ecosystem asset MUBI, Bounce Finance officially announced a series of actions to enter the Bitcoin ecosystem.

On November 25, Bounce Finance posted on social media that it is preparing to widely cultivate the BTC ecosystem and announced that it will focus on incubating and providing auction support for BTC projects.

On December 1, the company announced the launch ofBinance BTCB builds the Bitcoin DeFi application chain Bounce Bit. Among them, BTCB is composed ofBinanceThe issued wrapped assets are 1:1 anchored to the real BTC assets. Users can obtain BTCB by locking BTC, so that BTC holders can use BTCB to participate in on-chain DeFi activities without giving up their Bitcoin positions, thereby gaining more benefits. The Bounce Bit network will build a series of DeFi applications around BTCB and its native token AUCTION assets.

On December 6, Bounce Finance announced that it would upgrade its brand to Bounce Brand. Its products include Bounce Bit, a Bitcoin-based application chain, Bounce Box, a one-stop portal for exploring Bitcoin DeFi applications, and Bounce Auction, a Bitcoin ecosystem asset auction platform.

On December 19, Bounce Brand stated that IDO will adopt a "kill two birds with one stone" strategy to launch token issuance. Two independent teams will jointly issue a token, and the project identity will be kept confidential. The stablecoin D will be used by AUCTION and BitStable.AII participates and has two auction pools.

With the help of the Bitcoin ecosystem, Bounce Finance has successfully transformed from an auction platform forgotten by users to an IDO leading application that deeply cultivates the Bitcoin ecosystem. Among them, the native token AUCTION has increased by about 108% in the past 7 days and exceeded 40% yesterday. The current price is 40.78 US dollars, with a market value of 260 million US dollars.

Bitcoin cross-chain bridge protocol Multibit

Multibit Bridge (MUBI) is a cross-chain protocol within the Bitcoin ecosystem that supports easy cross-chain transfer of BRC20 and ERC20 assets, allowing cross-chain transfer of assets between EVM networks such as Ethereum and BNB Chain and the Bitcoin network.

MultiBit simplifies the cross-chain token transfer process between Bitcoin BRC20 and EVM networks. The specific cross-chain implementation process is that the user first deposits the cross-chain BRC20 token to the BRC20 address provided by Multibit. After the Multibit protocol is confirmed, the token will be minted and released to the user on the corresponding EVM target chain. When the user wants to cross the BRC20 token back, Multibit will destroy the corresponding number of tokens from the EVM chain and release the corresponding BRC20 token on the Bitcoin chain.

However, Multibit’s goal is not just a cross-chain bridge. In the future, it will also integrate a multi-faceted BRCFi application ecosystem including OAMM transactions, yield aggregators, and stablecoin issuance.

Among them, OAMM trading refers to the decentralized trading protocol of the automated market maker (OAMM) launched by Multibit based on Ordinals assets. The trading platform is designed specifically for trading Ordinals (ORDI) tokens, and all funding pools are paired with ORDI tokens for price discovery; the yield aggregator refers to optimizing the yield of ORDI tokens in the BRCFi application; stablecoins are also minted with ORDI as collateral, etc.

The Multibit platform was first launched in May, but it was not in the spotlight before November. What made it a success was the launch of the MUBI token. On November 12, MUBI completed the IDO auction on Bounce Finance, with an opening increase of 11,40%.

The wealth effect brought by IDO quickly made Multibit a star project in the Bitcoin ecosystem. The MUBI token has increased by about 131% in the past 7 days and is currently quoted at about US$0.3. The total issuance volume is 1 billion, the circulation volume is 950 million, and the circulation market value is US$290 million.

Bitcoin Ecosystem Stablecoin BitStable

BitStable (BSSB&DAII）是比特币生态内的稳定币协议，该应用采用了 BSSB&DAII 双代币系统，前者 BSSB 是治理代币，后者 DAII 是稳定币。

Currently, platform users can use assets approved by "BSSB Governance" as collateral to generate DAII, and currently only ORDI, MUBI and BTCB assets are supported as collateral. In addition, BitStable has cross-chained some DAII to Ethereum, supporting DAII holders to exchange with USDT.

As of December 19, the BitStable platform has minted 30.75 million DAII, of which 30.54 million are in ERC20 format and only 210,000 are in BRC20 format.

BitStable's first appearance was the issuance of the BSSB token on the IDO platform Bounce Finance. The price has risen by about 176% in the past seven days and is currently quoted at US$7.5. The total issuance of BSSB is 21 million, with a market value of US$180 million.

However, it should be noted that the BitStable protocol has been controversial since its launch. First, the official website could not be opened during the BSSB token public sale, and users even suspected that it was a Rug. The official said that it encountered a coordinated attack and DDOS attack carefully planned by miners and high-tech developers, resulting in uneven token distribution and unauthorizedwalletBut got most ofXiaobai NavigationAvailable supply, the team destroyed 75% tokens auctioned. The BitStable X social media account was only online for two days during the auction, and the first content was published on November 27.

In addition, some users said that the three projects of Bounce Finance, Multibit and BitStable are from the same team, aiming to create a Bitcoin ecosystem that integrates IDO, cross-chain and stablecoins. This speculation is not fabricated out of thin air, but has a basis. The IDOs of Multibit and BitStable are both executed on the Bounce Finance platform, and the future IDO projects of the Bounce Finance platform can use BitStable's stablecoin DAII as a participation ticket, and BitStable supports MUBI assets as collateral to cast DAII, etc. The three are inextricably linked.

DID Market Aggregator GoDID Launches Bitcoin Ecosystem DID Management Tool Bdid.io

Like Multibit and BitStable, the DID aggregation tool GoDID also issued the token BDID on Bounce Finance, and on December 18 announced the completion of a new round of financing led by NGC Ventures with a valuation of 30 million.

However, it is interesting that Jack Lu, the founder of Bounce Finance, is also a partner of NGC Ventures. Some users lamented that all the products launched on the Bounce Finance platform are related to NGC Ventures, and NGC Ventures may be the real operator of a series of Bitcoin ecological projects such as Multibit.

GoDID is a market aggregator for decentralized identities (DIDs). Its core functions are bulk search, query, registration, transaction, and management of DIDs. It currently provides services for ENS, Space ID, and Bitcoin Ordinals DIDs.

On December 15, Bdid.io, a sub-platform of GODID, issued the token BDID on Bounce Finance. Bdid.io was incubated by GODID. The platform can support the registration, transaction and management of mainstream DIDs with various suffixes created by the Ordinals protocol. For example, .sats, .bitmap, .BTC, .unisat, .bitter, etc.

Among them, the total issuance of BDID is 500 million, and the IDO price on the Bounce Finance platform is about US$0.00297. The current quotation is US$0.04, and the return on investment is about 20 times.

Representative lending products: BitSmiley, Liquidium, Liquidium

Stablecoin lending protocol BitSmiley

BitSmiley is a stablecoin lending protocol for the Bitcoin ecosystem.DAO+Compound", which mainly consists of decentralized over-collateralized stablecoin protocols, lending protocols, and derivatives protocols. On December 14, bitSmiley announced the completion of a round of financing led by ABCDE and OKX Venture.

Among them, bitUSD is a stablecoin generated by BTC as an over-collateralized asset and soft-pegged to the US dollar. The collateral mechanism is similar to MakerDAO Similar, except that the issuance of bitUSD is based on BTC as collateral assets. Any BTC holder can deposit bitcoin into the "bitSmiley Treasury" smartcontractTo generate bitUSD, every bitUSD in circulation is backed by excess collateral.

In the bitSmiley protocol, bitUSD can be used to settle debts, such as paying stability fees or loan interest. Users deposit a specific amount of BTC into the bitSmiley Treasury to generate bitUSD. In order to retrieve the deposited BTC, users need to repay the generated bitUSD and pay a certain stability minting fee.

With the stablecoin bitUSD as the core, BitSmiley launched bitLending, a peer-to-peer lending protocol based on BRC20.

At present, bitSmiley’s products have not yet been launched online, and its official Twitter account was only officially launched on December 4.

NFT and BRC20 lending protocol Liquidium

Liquidium is a P2P lending protocol built on the Ordinals protocol, which supports users to borrow and lend Bitcoin using ordinal inscriptions and BRC20 as collateral. On December 11, it announced the completion of a $1.25 million Pre-Seed round of financing, with Sora Ventures and others participating.

Currently, the Liquidium platform only supports Ordinals NFT as collateral for lending. The BRC20 lending product has not yet been officially opened to the public and is in the whitelist application stage.

The Liquidium platform does not use a liquidation mechanism based on the LTV value of the loan collateral. The loan status depends on the repayment within the set period. If it is not repaid by the due date, the loan is in default and the collateral belongs to the lender.

BRC20 Ecosystem Stablecoin Lending Agreement Uplink Finance

Uplink Finance（UPFI）是专为 ORDI、SATS 等 BRC-20 资产投资者设计的稳定币借贷协议，宣称是 BRC-20 生态系统中的 MakerDAO，BRC20 资产持有者无需出售即可释放所持资产的流动性价值。

On the Uplink Finance platform, users deposit BRC-20 assets such as BTC, ORDI, SATS, etc. as collateral to over-collateralize and borrow the platform's stablecoin UPSD.

On December 12, Uplink Finance announced that SATS and ORDI will become the first collateral for the minting of the platform's stablecoins, and will airdrop the platform's governance token UPFI to users holding its assets.

At present, the mortgage lending page of the Uplink Finance platform has not been officially launched.

Ordinals Ecosystem Infrastructure Tools: TurtSat, a donation platform, and Tap Protocol for building OrdFi applications

TurtSat: Gitcoin within the Bitcoin ecosystem

TurtSat (TURT) is composed ofCommunityThe Ordinals donation platform led by , whose mission is to become the Gitcoin of the Ordinals world. The platform features a donation protocol, aiming to enable more open source developers andCommunityAnyone can participate in the development of the Ordinals ecosystem and enjoy the benefits. Anyone can build and donate to the Ordinals ecosystem protocol through Turtsat.

In short, project owners can obtain funds through TurtSat, and users can earn income by supporting donation projects. Currently, the TurtSat platform supports the issuance of tokens for multiple Bitcoin ecosystem projects in the form of Lanchpad, which is similar to Bounce Finance.

As of December 20, the TurtSat platform has issued BRC 20 asset protocol Chamcha token CHAX, BRC 20 cross-chain bridge Multibit token MUBI, Ordinals aggregation platform NXHUB token NHUB and Ordinals lending platform Dova Protocol token DOVA, Bitcoin ecosystem game platform Rabbit token RAIT, Bitcoin ecosystem metaverse game Svarga token SVGR, etc. These projects are infrastructure construction platforms related to BRC 20 and Ordinals in the Bitcoin ecosystem. Yesterday, the TurtSat platform will also launch the Bitcoin staking platform Zooopia token ZOOA.

On December 7, TurtSat announced the launch of a staking fund pool for its native token TURT, supporting TURT holders to participate in projects that issue tokens on the platform to gain more benefits. In addition, TurtSat will also issue a new asset, EGGS, which needs to be obtained by staking TURT tokens. EGGS can be exchanged for the whitelist of Launch projects. In the future, EGGS will be used in more scenarios such as project online voting, direct exchange of cooperative token packages, etc.

Among them, the maximum issuance volume of TurtSat's native token TURT is 1 billion, with a temporary offer price of $0.078 and a market value of $78.73 million. The issuance volume of EGGS has not been disclosed.

Tap Protocol, a platform for building OrdFi

Tap Protocol is a platform for building OrdFi applications launched by Ordinals indexing protocol Trac. On December 16, it announced the completion of a $4.2 million financing led by Sora Ventures.

Trac is an infrastructure project of the Ordinals ecosystem, which aims to provide a decentralized system to track and access Ordinals-related protocols, such as BRC20, sats domain names, etc., and provides a standardized interface for how to create, manage and trade digital assets on the Ordinals platform.

The Tap Protocol is a platform for building OrdFi applications. It will provide a series of tools to help developers build DeFi products based on Ordinals, even without the complex Bitcoin Layer2 network, such as providing inscription segmentation and enabling DeFi applications on inscriptions.

In the future, Tap Protocol will launch Ordinals fragmentation products, exchange pools, lending and staking products.

The article comes from the Internet:The BRCFi application is favored by capital. How to seize the new trend of the Bitcoin ecosystem?

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