Huobi Research Institute | BTCFi and CoreX: Leading the Future of Bitcoin Decentralized Finance
Preface
2024 is the year when Bitcoin will burst into energy. At the beginning of the year, SEC approved the listing of Bitcoin ETF, and then Hong Kong also approved the listing of ETF. Good news keeps coming, and with the completion of halving last month, Bitcoin is undoubtedly moving towards a more ambitious goal. At the same time, on the Bitcoin application side, we have seen the ecological innovation brought by Ordinals. With the increase in its popularity and the resulting network congestion, the topic of Bitcoin expansion has once again been taken seriously. After several months of development, the current market shows a trend of Bitcoin Layer2 and side chains blooming, and BTCFi is considered to be a major track with huge room for future development.
We noticed the Core project in the early stage of BTCFi development because it proposed innovative solutions as a public chain to solve the Layer 1 networkSafety, speed, and decentralization issues, the Satoshi Plus mechanism perfectly releases the Bitcoin networkSafetyThe consensus is supported by the Bitcoin network, and it has efficient transaction processing speed and sufficient decentralization (for details about the Core chain, please read:https://docs.coredao.org/core-white-paper-v1.0.7).
We believe that the Core chain is the best soil for the development of BTCFi. As one of the earliest ecological partners supporting the Core chain, Huobi HTX has strategically invested in the decentralizedexchange：CoreX, and regard CoreX as the future CoreDAOThe core ecosystem portal and liquidity gathering place provides a brand new trading experience. This report details CoreX’s product design ideas, functional features and competitiveness. Huobi HTX believes that CoreX will become CoreDAOOne of the most competitive Dex, and as a booster of the ecosystem, it has become CoreDAOThe center of user mobility.
Why we are optimisticBTCFi
Bitcoin DeFi (BTCFi for short) means decentralizingXiaobai NavigationBitcoin has long been the most popular financial institution with the strongest consensus andSafetySexualBlockchainThe network, because it does not have the execution intelligencecontractBitcoin cannot function like Ethereum or otherBlockchainPublic chains, equipped with decentralized applications, are often used as "HODLing" targets. For Bitcoin holders, on-chain lending, decentralized transactions, andcontractExperiences such as transactions have always been relatively blank.
Ordinals and Runes at the beginning of the year explored new application scenarios for the BTC ecosystem, which also showed the market's great interest in the general functions of the Bitcoin network, but we believe that Bitcoin's potential in the Defi field is still to be explored. At present, the TVL in BTCFi is close to $1.2Billion, accounting for only 0.09% of the total market value of Bitcoin. In contrast, mainstream public chains with smart contract carrying capabilities, such as Ethereum, have an ecological TVL of 14% of its market value, Solana 6%, and Ton is about 3%. Their ecological TVL has a large increase relative to their market value. Even if calculated at 1%, BTCFi still has 10 times of growth space.
Figure 1: Ratio of ecosystem TVL to ecosystem market value and comparison of ecosystem market value
We believe that BTCFi not only unlocks the huge value in the Bitcoin market cap, but also provides new income-generating opportunities for BTC holders. Through BTCFi, holders can go beyond just "HODLing" and make full use of their BTC through staking, lending, market making, etc. As BTCFi protocols continue to develop, they are expected to compete with or even surpass other existing public chain ecosystems, thereby promoting the formation of a more diversified and robust DeFi ecosystem.
CoreDAOThe rise of
There are currently many solutions in the market on how to expand the functionality of Bitcoin. Among them, Core, as a Layer 1 public chain supported by the Bitcoin network and compatible with EVM, has proposed an innovative idea.
Core由一种名为Satoshi Plus的共识机制保证安全，该共识从三种路径保证Core链的安全性，分别为DPOW，DPOS和非托管比特币质押，首先DPOW结合了比特币POW的安全性，矿工可以在为比特币网络提供算力时，同时将其算力委托给Core中的节点，为Core链提供共识安全。目前，已有46%的比特币节点委托在Core链中，提供259EH/s的算力支持。另一方面，Core的安全也由委托在网络中的Core Token和比特币提供，目前已有接近125Million Core和3000个比特币被委托在Core网络中。这种POW+DPOS的混合共识模式，既保证了网络的安全，也释放了网络快速执行交易的能力。
The design of non-custodial staking is another milestone innovation of Core. Since there is no need to establish trust with centralized custody, Bitcoin holders can safely enjoy the benefits of not losing control of Bitcoin while participating in the consensus of the Core chain and receiving staking rewards. This greatly reduces the threshold for Bitcoin holders to participate in staking and increases the security of Core. Bitcoin holders do not need to bridge Bitcoin across chains or encapsulate it into a packaged asset like WBTC. This completely non-custodial mechanism has the opportunity to attract a large number of Bitcoin holders to participate in the establishment of the Core network consensus.
Regarding the future development direction of CoreDAO, we believe that Defi will be the key track for the development of the Core ecosystem. Bitcoin users will be able to participate in lending, contract trading and other agreements while maintaining their Bitcoin holdings. Innovations include opening positions with Bitcoin as collateral, directly using Bitcoin for liquidity rewards or pledge liquidation, etc. At the same time, based on the pledge income, the gameplay of liquidity pledge will inevitably be derived.
what isCoreX
CoreX will serve as the flagship DEX in the CoreDAO ecosystem, providing users with an excellent trading environment through its simple and intelligent design and rich tool suite. CoreX uses Uni V3's infrastructure to solve key challenges such as insufficient liquidity and transaction slippage, and integrates advanced artificial intelligence technology to create a vibrant social trading center.
CoreXHow to create a new trading experience
CoreX through itsOptimized user experience, social features and artificial intelligence technologyBringing a brand new trading experience to users. CoreX is committed to lowering the entry threshold for new users, allowing them to easily enter the Defi field.
CoreX significantly improves the traditional DEX experience by providing a user-friendly trading environment. The platform includes advanced real-time charting tools that not only allow traders to track their chosenTokenThe price fluctuations of the market are also integrated with technical indicators and drawing tools for deeper analysis. These features are particularly useful and easy to use for traders who want to share their insights on social media. In addition to these comprehensive charting features, detailed information on each transaction is also displayed directly on the trading interface, including realized profits or losses, making important information easy to understand and obtain. Looking ahead, CoreX will launch customization options that will allow traders to customize their trading environment to suit their specific needs using an intuitive drag-and-drop interface.
CoreX also takes social trading to a new level. It provides global chat rooms and currency-based chat rooms, allowing traders to communicate with othercryptocurrencyTraders exchange ideas and share trading opportunities. For loyal users, CoreX also provides 1-on-1 encrypted messaging and the privilege of creating private chat rooms. In addition, CoreX has integrated social elements into its operations, including providing high returns through staking programs and hosting exclusive online and offline events to recognize and reward NFT holders. In the near future, CoreX will hold a 10 million 10 million NFT event.TokenThe large-scale airdrop social event has attracted a lot of attention.
In addition, CoreX provides users with an intelligent trading assistant that uses machine learning algorithms to recommend trading opportunities to users based on personal user preferences, technical analysis, and social media sentiment. CoreX also provides a one-click copy trading function, allowing users to easily follow the strategies of outstanding traders. In addition, it also cooperates with algorithmic trading companies to provide users with accurate price predictions to help them stand out in the highly competitive trading environment.
HTX VenturesStrategic InvestmentCoreX
Crypto traders are constantly looking for platforms that can bring sustained returns and high-quality trading experience. CoreX puts user experience first and provides a high-quality and intelligent experience through social and artificial intelligence technologies, which gives us every reason to look at it. We believe that the emergence of CoreX will push the development of CoreDAO's Defi to a new height. In the future, HTX Ventures will continue to pay attention to the CoreDAO ecosystem and promote the development of the ecosystem through our resources and advantages.
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About HTX Ventures:
HTX Ventures is the global investment arm of Huobi HTX, integrating investment, incubation and research to identify the best and most promising teams in the world.BlockchainAs a pioneer in the industry for ten years, HTX Ventures promotes the development of cutting-edge technologies and emerging business models in the industry, providing full support for cooperative projects, including financing, resources and strategic consulting, to establish long-termBlockchainEcology.
目前，HTX Ventures已支持跨越多个区块链赛道的300 多个项目，其中部分优质项目已上线火币HTX交易。同时，HTX Ventures 是最活跃的基金中基金（FOF）投资者之一，携手Dragonfly、Bankless Ventures、Gitcoin, Figment、Animoca等全球顶尖区块链基金共同建设区块链生态。
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