DAII Module
The DAII module in the BitStable protocol is a cornerstone feature designed for the generation and management of the DAII stablecoin on the Bitcoin blockchain. Given Bitcoin’s limitations in smart contract functionalities, the DAII module focuses on a streamlined minting and burning process using the ORDI asset in its initial phase.
Generation of DAII using BRC20 $ORDI
Minting DAII: Users can mint DAII by collateralizing the BRC20 $ORDI token. This process involves locking ORDI in BitStable Protocol on the Bitcoin blockchain. The collaterization ratio for ordi is set at 500%.
Bitcoin's Limitations: Due to Bitcoin's inherent limitations (only supporting basic mint and burn functionalities), the DAII module is tailored to operate within these constraints, focusing on a robust and secure minting process.
Generation of DAII using BTC
Users can mint DAII by collateralizing spot bitcoin. Generating DAII, a stablecoin in the bitcoin ecosystem, using Bitcoin (BTC) involves a process of collateralization where BTC is used as a security for minting DAII. This mechanism is pivotal in integrating the traditional cryptocurrency market, specifically Bitcoin, into the burgeoning DeFi space.
Generation of DAII using BTCB
DAII, a stablecoin within the BitStable ecosystem, can be generated using BTCB as collateral. This process involves leveraging BTCB, a token on the BNB Chain (BSC) pegged to Bitcoin, to create a stable digital currency pegged to the US Dollar, DAII (BEP20). DAII built on BNB chain can be bridged to BTC network for the BSSB Farm.
BTCB (Bitcoin BEP20) is a token on the Binance Chain and BNB Chain (BSC) that is pegged 1:1 to Bitcoin (BTC). It was introduced by Binance to enable Bitcoin holders to participate in the decentralized finance (DeFi) ecosystem on BNB. The main advantage of BTCB is that it allows users to hold BTC while engaging in the DeFi space using BNB, without having to sell their BTC and potentially miss out on its price gains. The BTCB is backed by an equivalent amount of BTC locked in a public address, which can be audited through the Proof of Assets webpage provided by Binance.
Liquidation Process
If the collateralization ratio falls below the minimum requirement, the BitStable protocol may initiate a liquidation process. This involves auctioning the BTCB collateral to cover the outstanding DAII debt. More will be announced regarding the BTCB liquidation ratio.
Cross-Chain Functionality
DAII on Ethereum: DAII minted on the Bitcoin blockchain can be bridged to Ethereum as an ERC20 token. This cross-chain functionality enhances the liquidity and usability of DAII in the broader crypto ecosystem.
Swapping for Stablecoins: Once on the Ethereum blockchain, DAII can be swapped 1:1 with stablecoins like USDC or USDT, providing users with flexibility and access to smart contract blockchains' vast DeFi ecosystem. BitStable is partnered with MultiBit Bridge for cross chain transfers between Bitcoin, EVM and other L1s.
Redeem: When users need to get back collateral or USDT on the Ethereum chain, they need to Redeem DAII on the BitStable platform to bring DAII back to balance.
Mining and Rewards
Bridging for Mining: To participate in mining and earn rewards, users need to bridge their DAII back to the Bitcoin blockchain using the MultiBit bridge. This process ensures that the mining activities are securely anchored to the Bitcoin network.
Mining Rewards: Rewards from mining activities are distributed in BSSB, aligning incentives with the governance and stability of the BitStable ecosystem.
Reversion Process
Bridging Back to ERC20: Users can bridge their DAII back to Ethereum as an ERC20 token. This reversion process is crucial for users who wish to swap their DAII for USDT or participate in Ethereum’s DeFi protocols.
Swapping DAII for Stablecoins: On Ethereum, users can swap their DAII for USDT, completing the cycle of cross-chain interaction and offering a seamless user experience.
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