FRAKT: Solana's new NFTfi
Frakt are a new Solana NFTfi (NFT finance) protocol on Solana. But they're not "new" perse. They've been around for quite a while, but as a collection of NFT projects. This new platform is those projects evolving to become a new type of protocol. It's very interesting and quite impressive what they've been able to accomplish so far.What is Frakt?From https://docs.frakt.xyz/frakt/ FRAKT is the first decentralized NFT liquidity protocol on Solana offering both peer-to-pool a...
Help! I'm a defi n00b!
Defi is a really really interesting space. It's currently mostly financial but it's not just financial. But defi is also very new and we've not seen a lot of standardisation yet so it can be quite overwhelming for new comers. Never fear, there's heap of resources to help you get started and you'll see, despite the outward appearance, defi actually pretty simple when you get down to the core concepts.Where oh where to start?I cannot recommend defi information aggregato...
Free Speech on the Internet continues to be defined by its Moderation
All censorships exist to prevent anyone from challenging current conceptions and existing institutions. All progress is initiated by challenging current conceptions, and executed by supplanting existing institutions. Consequently, the first condition of progress is the removal of censorship.― George Bernard Shaw It wasn’t until the infrastructure of the internet became significantly more #decentralised and accessible that we started to fully grapple with #freespeech on the #internet. Whilst I...
Badger DAO are doing a synthetic $BTC. It's not your Bitcoin, it's a #liquidstaked $ETH backed token, called $eBTC, which tracks the value of Bitcoin.
Linked below are the two updates in the Badger forums about it so far.
Announcement: https://forum.badger.finance/t/introducing-ebtc-a-decentralized-bitcoin-powered-by-ethereum-staking/5952/9
First update: https://forum.badger.finance/t/ebtc-builder-update-1/5975
The thesis, as I read it, is:
current #EVM chain compatible bitcoin products (namely $wBTC) are centralised & permissioned thus essentially like a bank holding your #bitcoin.
bridging to and from #bitcointechnology is hard and risky
liquid staked #ETH is flexible,
FRAKT: Solana's new NFTfi
Frakt are a new Solana NFTfi (NFT finance) protocol on Solana. But they're not "new" perse. They've been around for quite a while, but as a collection of NFT projects. This new platform is those projects evolving to become a new type of protocol. It's very interesting and quite impressive what they've been able to accomplish so far.What is Frakt?From https://docs.frakt.xyz/frakt/ FRAKT is the first decentralized NFT liquidity protocol on Solana offering both peer-to-pool a...
Help! I'm a defi n00b!
Defi is a really really interesting space. It's currently mostly financial but it's not just financial. But defi is also very new and we've not seen a lot of standardisation yet so it can be quite overwhelming for new comers. Never fear, there's heap of resources to help you get started and you'll see, despite the outward appearance, defi actually pretty simple when you get down to the core concepts.Where oh where to start?I cannot recommend defi information aggregato...
Free Speech on the Internet continues to be defined by its Moderation
All censorships exist to prevent anyone from challenging current conceptions and existing institutions. All progress is initiated by challenging current conceptions, and executed by supplanting existing institutions. Consequently, the first condition of progress is the removal of censorship.― George Bernard Shaw It wasn’t until the infrastructure of the internet became significantly more #decentralised and accessible that we started to fully grapple with #freespeech on the #internet. Whilst I...
Badger DAO are doing a synthetic $BTC. It's not your Bitcoin, it's a #liquidstaked $ETH backed token, called $eBTC, which tracks the value of Bitcoin.
Linked below are the two updates in the Badger forums about it so far.
Announcement: https://forum.badger.finance/t/introducing-ebtc-a-decentralized-bitcoin-powered-by-ethereum-staking/5952/9
First update: https://forum.badger.finance/t/ebtc-builder-update-1/5975
The thesis, as I read it, is:
current #EVM chain compatible bitcoin products (namely $wBTC) are centralised & permissioned thus essentially like a bank holding your #bitcoin.
bridging to and from #bitcointechnology is hard and risky
liquid staked #ETH is flexible,
Share Dialog
Share Dialog
people love #stablecoins that track the price of USD, people also love Bitcoin, so why not have a coin that tracks the price of $BTC?
From the forum posts:
Liquity’s LUSD architecture stood out as an exception, excelling in providing censorship-resistant borrowing with a stable floor peg. Designed with a focus on censorship resistance and #decentralization with only ETH as collateral, it was similar to our vision for eBTC. We decided to borrow from Liquity’s design as the foundation for eBTC’s architecture on the grounds of their stable performance, quality of research, and commitment to #immutability.
Luckily the first thing that springs to mind was raised in the comments on the announcement post.
Q: But, one of the problems will be, there will be more bitcoins in the market and the MAX supply of Bitcoin will be more than 21mm?
A: eBTC is a collateralized crypto asset soft pegged to the price of Bitcoin and built on the Ethereum network. It is backed exclusively by Liquid Staked ETH (LSD) and powered by immutable smart contracts with no counterparty reliance. It’s designed to be the most decentralized synthetic BTC in DeFi and offers the ability for anyone in the world to borrow BTC at no cost.
Maybe this is how actual Bitcoin dies. Not through some hack or people losing faith in it, but by it being made technologically obsolete by derivatives.
Two huge assumptions particularly stand out to me about Badger's thesis:
A1. Bitcoin is regarded by people as a similar reserve asset to USD A2. You can reliably algorithmically maintain a token value peg with two volatile assets.
A1. The USD is an inflationary currency which maintains its stability through its integration with the multi trillion dollar US economy and as the reserve currency for much of the global economy. Bitcoin, in contrast, has always paid it's miners almost entirely in block rewards (which are slowly halving themselves into non-existence) because there's so few transactions fees generated on chain.
A2. It's not unusual for BTC to move 10-30% month on month. ETH too.
If you want to use Bitcoin to it's full potential in #defi then you need bridge it to a #smartcontract #blockchain. wBTC might not be the greatest solution but at least it's actual bitcoin backing that asset.
A better solution is a permission-less and decentralised bridge to and from the bitcoin chain.
That's why I'm so optimistic for what Threshold Network are building with $tBTC
And what Stacks are building with $sBTC
If you liked this post, make sure to follow me at my other web3 homes, I’m @andrewsaul. If you’re not yet signed up below are some referral links
BULB
Solcial
people love #stablecoins that track the price of USD, people also love Bitcoin, so why not have a coin that tracks the price of $BTC?
From the forum posts:
Liquity’s LUSD architecture stood out as an exception, excelling in providing censorship-resistant borrowing with a stable floor peg. Designed with a focus on censorship resistance and #decentralization with only ETH as collateral, it was similar to our vision for eBTC. We decided to borrow from Liquity’s design as the foundation for eBTC’s architecture on the grounds of their stable performance, quality of research, and commitment to #immutability.
Luckily the first thing that springs to mind was raised in the comments on the announcement post.
Q: But, one of the problems will be, there will be more bitcoins in the market and the MAX supply of Bitcoin will be more than 21mm?
A: eBTC is a collateralized crypto asset soft pegged to the price of Bitcoin and built on the Ethereum network. It is backed exclusively by Liquid Staked ETH (LSD) and powered by immutable smart contracts with no counterparty reliance. It’s designed to be the most decentralized synthetic BTC in DeFi and offers the ability for anyone in the world to borrow BTC at no cost.
Maybe this is how actual Bitcoin dies. Not through some hack or people losing faith in it, but by it being made technologically obsolete by derivatives.
Two huge assumptions particularly stand out to me about Badger's thesis:
A1. Bitcoin is regarded by people as a similar reserve asset to USD A2. You can reliably algorithmically maintain a token value peg with two volatile assets.
A1. The USD is an inflationary currency which maintains its stability through its integration with the multi trillion dollar US economy and as the reserve currency for much of the global economy. Bitcoin, in contrast, has always paid it's miners almost entirely in block rewards (which are slowly halving themselves into non-existence) because there's so few transactions fees generated on chain.
A2. It's not unusual for BTC to move 10-30% month on month. ETH too.
If you want to use Bitcoin to it's full potential in #defi then you need bridge it to a #smartcontract #blockchain. wBTC might not be the greatest solution but at least it's actual bitcoin backing that asset.
A better solution is a permission-less and decentralised bridge to and from the bitcoin chain.
That's why I'm so optimistic for what Threshold Network are building with $tBTC
And what Stacks are building with $sBTC
If you liked this post, make sure to follow me at my other web3 homes, I’m @andrewsaul. If you’re not yet signed up below are some referral links
BULB
Solcial
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