Shell Finance is the first trustless Lending Protocol built on the Bitcoin network.
Mempool Sniping: The Challenges for Ordinals and Shell Finance's Response
In the Bitcoin network, transactions broadcasted to the mempool are not immediately confirmed. Most transactions remain "unconfirmed” until a new block is mined, which can take a few minutes to over an hour (depending on the current average gas fee). Due to varying block times, "unconfirmed" transactions are easily replaced by other users using a higher fee rate (RBF = Replace-By-Fee), leading to the original transaction being discarded. This phenomenon is commonly known as "mempool sniping."...
Mempool Sniping: The Challenges for Ordinals and Shell Finance's Response
In the Bitcoin network, transactions broadcasted to the mempool are not immediately confirmed. Most transactions remain "unconfirmed” until a new block is mined, which can take a few minutes to over an hour (depending on the current average gas fee). Due to varying block times, "unconfirmed" transactions are easily replaced by other users using a higher fee rate (RBF = Replace-By-Fee), leading to the original transaction being discarded. This phenomenon is commonly known as "mempool sniping."...
DLC use cases: Shell Finance & DLC.Link
What is DLC?Discreet Log Contracts (DLCs), an MIT invention that became possible with Taproot’s introduction of Schnorr signatures. DLCs were originally proposed by Tadge Dryja, the co-creator of the Lightning Network, as a way to enable smart contracts to conditionally move Bitcoin. This innovative approach allows for creating financial contracts that depend on external events, which is crucial for implementing complex DeFi functionalities directly on the Bitcoin blockchain.DLC in Shell Fina...
DLC use cases: Shell Finance & DLC.Link
What is DLC?Discreet Log Contracts (DLCs), an MIT invention that became possible with Taproot’s introduction of Schnorr signatures. DLCs were originally proposed by Tadge Dryja, the co-creator of the Lightning Network, as a way to enable smart contracts to conditionally move Bitcoin. This innovative approach allows for creating financial contracts that depend on external events, which is crucial for implementing complex DeFi functionalities directly on the Bitcoin blockchain.DLC in Shell Fina...
Peer-to-Pool: the Paradigm Shift of Lending Protocols in the Bitcoin Network
From Peer-to-Peer to Peer-to-PoolFinancial asset transactions require at least two parties with opposite directions and matching needs. The core of financial services is to enhance the efficiency of matching these parties while reducing the frictional costs of participation. P2P trading has been widely applied in spot markets, loans, and futures. ETHLend, the precursor to the largest lending protocol, AAVE, raised over $16 million through an ICO in 2017. Their goal was to achieve decentralize...
Peer-to-Pool: the Paradigm Shift of Lending Protocols in the Bitcoin Network
From Peer-to-Peer to Peer-to-PoolFinancial asset transactions require at least two parties with opposite directions and matching needs. The core of financial services is to enhance the efficiency of matching these parties while reducing the frictional costs of participation. P2P trading has been widely applied in spot markets, loans, and futures. ETHLend, the precursor to the largest lending protocol, AAVE, raised over $16 million through an ICO in 2017. Their goal was to achieve decentralize...
Shell Finance: Leveraging DLC for Advanced Lending Mechanisms
Discreet Log Contracts (DLC) are an advanced smart contract technology on Bitcoin Layer 1 that enables Bitcoin to interact with off-chain data securely and efficiently. This innovative approach allows for creating financial contracts that depend on external events, which is crucial for implementing complex DeFi functionalities directly on the Bitcoin blockchain. DLCs enable Bitcoin to utilize off-chain data by using adaptor signatures. These signatures ensure that the contract outcomes are ve...
Shell Finance: Leveraging DLC for Advanced Lending Mechanisms
Discreet Log Contracts (DLC) are an advanced smart contract technology on Bitcoin Layer 1 that enables Bitcoin to interact with off-chain data securely and efficiently. This innovative approach allows for creating financial contracts that depend on external events, which is crucial for implementing complex DeFi functionalities directly on the Bitcoin blockchain. DLCs enable Bitcoin to utilize off-chain data by using adaptor signatures. These signatures ensure that the contract outcomes are ve...
Shell Finance: Why Are We Building a Lending Protocol on Bitcoin?
The Ten-Billion-Dollar Market: BiFi = DeFi + NFTFiIn blockchain networks, the core of each layer of applications is built to capture the liquidity value from the layer above it. Ethereum, as a public blockchain platform with smart contract capabilities, established the ERC-20 token standard since its inception in 2015:Builders are not satisfied with simple asset trading. To capture the liquidity value of both the native token $ETH and the proliferation of ERC-20 tokens, a plethora of excellen...
Shell Finance: Why Are We Building a Lending Protocol on Bitcoin?
The Ten-Billion-Dollar Market: BiFi = DeFi + NFTFiIn blockchain networks, the core of each layer of applications is built to capture the liquidity value from the layer above it. Ethereum, as a public blockchain platform with smart contract capabilities, established the ERC-20 token standard since its inception in 2015:Builders are not satisfied with simple asset trading. To capture the liquidity value of both the native token $ETH and the proliferation of ERC-20 tokens, a plethora of excellen...
