Opportunities and Risks, Exploring the New “BRCFi” Narrative

BRCFi is becoming a high-profile story in this bull cycle, and most people may not have heard of the name before.

Many of the coins in this story could have a 100x return.

What is BRCFi?

As created by Multibridge, BRCFi is a DeFi ecosystem powered by the BRC20 token. This is a pretty interesting naming.

As Multibridge states in their documentation, their goal is to drive BRC20 into the mainstream by building the entire DeFi ecosystem around it.

Summer of BRC20

This summer, we had the first wave of BRC20 tokens, and there were a lot of “meme coins” emerging. Minting these tokens is so simple that avid investors minted them like crazy, causing the Bitcoin network to become clogged in just a few days.

During the summer of BRC20, tokens such as ORDI and SATS were launched one after another. The buzz around BRC20 lasted for a few weeks, and then suddenly people stopped talking about them. Meanwhile, some Ethereum developers have also found ways to inscribe on Ethereum and other EVM chains.

EVM inscription

A young Indian builder @mrphygital smelled this huge opportunity and created a marketplace called Evmink for minting and trading EVM inscriptions. Evmink has become the most popular place for minting and trading inscriptions of Polygon, Avalanche, and BNB Chain.

BRC20 Winter

Ordinals once again raised eyebrows when Elon Musk pointed out that most NFTs are not on-chain. Ordinals gained a new narrative, people started buying Ordinals again, and money started flowing into the BRC20 token.

Some of the oldest BRC20 tokens, notably ORDI, have attracted a lot of attention. Eventually, it was successfully listed on Binance and within a month of listing, its market capitalization grew from $100 million to $1 billion. Other CEXs are also now showing significant interest in listing BRC20 tokens.

Crucial moment

We all know that BRC20 tokens cannot survive in the name of a meme alone, they need utility and support from the entire ecosystem. The Bitcoin community has some great developers, but adoption is still primarily on the Ethereum chain, so BRC20 needs a bridge.

Multibridge

Multibridge builds this bridge, enabling cross-chain transactions between BRC20 and ERC20 tokens. It enables you to easily transfer BRC20 between the two major chains.

Multibridge is making waves across the entire DeFi ecosystem surrounding BRC20. Now we have projects like Bitstable that are building a decentralized CDP protocol similar to MakerDAO. They issued DAII, an over-collateralized stablecoin for the BRC20 token.

Multibridge has recorded over $279 million in bridge transaction volume in less than a month, making it the third most used third-party bridge over the past 30 days. The price of Multibridge’s native token MUBI has also increased 28x from its IDO price.

Bitstable

Bitstable is also going crazy on volume and price action. In less than two weeks, Bitstable’s total value locked (TVL) has exceeded $10 million, while BSSB’s price has increased 64x from its IDO price.

Now you must be thinking two questions: apart from these two projects, what other potential projects are there, and where is the IDO of the BRCFi project.

I will reveal some promising BRCFi projects:

· Cross-chain bridge: @OrdiZK, @OrdBridge

· Money Market: @dova_protocol

· Aggregator: @NxHub_io

· Launch platforms: @Turtsat, @bounce_finance

BRCFi IDOs

Everyone knows Bounce, right? It was a fairly popular Ethereum-based IDO launch platform during past bull cycles. So now, they have transformed into a launch platform for BRCFi tokens.

To participate in future transactions, you will need to stake AUCTION, DAII, or other required tokens.

Risks involved

Currently, BRCFi is in a very high risk category. Most of the teams building BRCFi projects are anonymous, so many of these projects may suffer from “RUG PULL”. Moreover, most projects do not undergo security audits, so there is also a risk of being hacked.

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