Specifically, BTC is actually a general reference, not just #BTC, but a collection of #Bitcoin, including BTC, $MSTR, $COIN, and various BTC spot ETFs, but considering that it is closer to the original BTC, so the three “BTC” objects that can represent BTC are prioritized, namely BTC MSTR and $IBIT.

The STO part is a very important part. This STO is only in formality. If it does not become bigger, there is no need to apply for an STO license. Conceptually, a fund or an offshore company is the main body of the entire project. This main body After the capital injection, purchase the three assets of BTC MSTR and IBIT. The STO part is to issue the encapsulated assets into coins.

It should be noted that if the currency itself is equal to BTC MSTR and IBIT, it is 100% illegal. It will definitely be sued by the SEC, so what I do is use the total assets of the fund or offshore company as the anchor asset, and issue Tokens for the total value of the three assets. If there are 1 million US dollars in BTC and 1 million US dollars in MSTR in the fund, and 1 million US dollars of IBIT, then what I can do is to issue 1 million ST (Stable) Token worth 1 US dollar, BTC is stBTC, MSTR is stMSTR, IBIT is stIBIT.

If the BTC added to the purchase rises by 10%, then the value of stBTC will rise from US$1 to US$1.1, and the same will happen if it falls. Therefore, this stage of currency issuance will most likely occur after STO compliance in the later period, so that partners can directly use USDT or USDC to purchase st assets, which is equivalent to purchasing MSTR or IBIT. Purchasing stBTC is of little significance. All assets are audited by Web2's auditing company and announced once a month to ensure one-to-one correspondence between assets and funds. Users with large amounts of funds can directly deliver MSTR or IBIT. In fact, this system is almost the same in structure as Grayscale's GBTC and ETHE.

The RWA part is very simple. It is to package BTC MSTR and IBIT into a synthetic asset. The assets themselves include virtual and real-world compliant assets, and these assets can be traded on Web2 or Web3. And shareholders can request to see all documents and accounts, and balances will be calculated daily.

RWAFi integrates three assets into one ETF. This ETF can be traded in the OTC market. If the volume is large enough, it can also be traded on exchanges such as Nasdaq. It can even be traded on the chain. The ETF directly reflects It is the value fluctuation of three "BTC" and has Web2 assets as certification. This ETF can support Staking and ReStaking, and the ETF can be opened to individual DeFi projects as pledge targets.

DeFi itself is actually the basis of STO and RWA. Even RWAFi is based on the premise of DeFi, so small-scale investors can trade directly through Dex on the chain, and the liquidity is provided by BTCFi based on asset shares. Ensure that each Token corresponds to one of the three underlying objects, so that the user holding St Token is equivalent to holding any one of the three underlying objects.

For high-net-worth users, you can become an LP of BTCFi by providing BTC MSTR and IBIT and enjoy LP dividends. The main profits come from handling fees, custody fees and transaction fees, as well as part of the spread income. This part It won’t be expanded.

In fact, there is another system in this set on PayFi. A friend guessed it correctly last time. Although PayFi is not the core gameplay, it will make BTCFi more directly applicable in life. This is also the reason why I want to put this project on solana. I am willing to support SOL in RWA design and PayFi applications.

Underlying these logics is the actual application. This set of applications is the quoted tweet content, which provides liquidity to BTC MSTR and IBIT, allowing friends to easily allocate funds in virtual assets and real assets without the need to sell. To put it bluntly, you don’t need to sell BTC to get 60% + interest or 70% + interest-free funds from the bank or BTCFi.

Thereby achieving increased liquidity. The important point is that this process is reversible, that is, after you exchange BTC for MSTR or IBIT of equal value, you can exchange MSTR or IBIT for BTC of equal value again, so your BTC will not be lost.