BrCFi applications are in full swing. What tools can help us seize the cusp?

As BRC20 tokens such as ORDI, SATS, and RATS continue to rise, the popularity of the Bitcoin ecosystem has also increased, and Bitcoin ecosystem applications and infrastructure around the Ordinals inscription and BRC20 have sprung up.

According to data from the crypto platform Rootdata, since entering December, several apps within the Bitcoin ecosystem have announced that they have received financing.

On December 20, ALEX Lab, a one-stop DeFi service platform based on the Bitcoin Stack, received strategic investment from LK Venture under Blue Port Interactive to make a strategic investment.

On December 18, Bitcoin’s BRC ecosystem aggregation toolset Biis announced that it has received a strategic investment from the crypto investment agency CGV; DID market aggregator GodID completed a new round of financing led by NGC with a valuation of 30 million, while a few days ago, GODID’s sub-platform bdid.io focused on the BTC ecosystem to issue the token BDID.

On December 16, Tap Protocol, a Bitcoin infrastructure project to build an OrdFi application, closed $4.2 million in financing, led by Sora Ventures; on December 14, Bitcoin stablecoin loan agreement BitSmiley completed a round of financing led by ABCDE and OKX Venture; and on December 11, Bitcoin Ordinals lending solution Liquidium closed 1.25 million USD Pre-Seed round, Bitcoin Frontier Fund, Sora Ventures and others participated.

On December 7, MAP Protocol, a cross-chain protocol, announced that it has received strategic investment from DWF Labs and Waterdrip Capital to achieve BRC20 cross-chain; the Bitcoin staking project Babylon announced the completion of $18 million Series A funding, led by Polychain Capital and Hack VC.

In less than 2 weeks, 8 projects related to the Bitcoin ecosystem have successively received financial support from crypto capital, covering products such as cross-chain, lending, and pledging, and they are all financial application products built around new assets such as Ordinals and BRC20.

With the influx of capital, the wealth effect of the Bitcoin ecosystem continues to ferment, gradually evolving from the hype around the BRC20 inscription to infrastructure and application products built around these assets, such as the Bitcoin ecosystem’s IDO platform Bounce Finance token AUCTION, the cross-chain bridge Multibit token MUBI, and the stablecoin BitStable governance token BSSB, which have all risen by more than 100% in the past 7 days. With strong support from capital and driven by the sharp rise in Bitcoin ecosystem application assets, BRcFi has spawned a new circuit.

BRcFi refers to the DeFi ecosystem driven by the BRC20 token, which is a DeFi application product built around BRC20 and Ordinals assets. Currently, the BRCFi circuit has launched several suite products such as cross-chain bridges, stablecoins, IDO platforms, and loans. So, what are representative products for BRcFi applications? How is the operation going?

Bounce Finance’s BRcFi suite for “trading”: cross-chain bridges, stablecoins, IDO platforms, and more

Bounce Finance (AUCTION) centralized auction platform takes off with Bitcoin

Bounce Finance (AUCTION) was originally a multi-chain decentralized auction platform that provided services such as token issuance and NFT auctions, and simplified the IDO process for new projects. The platform was created in September 2020 by Jack Lu and Ryan Fang, where Jack Lu is also a partner at NGC Ventures. Born in an age where DeFi applications were in full swing, the Bounce Finance app was not outstanding, and as the crypto market grew, the platform gradually faded out of the radar of crypto users.

However, in November, the Bounce Finance platform quickly became popular because it issued the Bitcoin ecosystem’s cross-chain bridge MUBI, and the stablecoin BitStable token BSSB. MUBI and BSSB increased tens of times after the IDO on the Bounce Finance platform. The wealth effect brought by these IDO assets also made the hidden Bounce Finance asset distribution platform the biggest winner, and users regarded it as the “birthplace of the next ten times the coin.”

In the past 1 month, 3 Bitcoin ecosystem project tokens have been successfully issued on the Bounce Finance platform. On November 12, the Bitcoin cross-chain bridge MultiBit asset MUBI was released. The IDO unit price is 0.00047 US dollars, and the cumulative increase is more than 1000 times; the public sale of the Bitstable project token BSSB, a Bitcoin-based cross-chain stablecoin protocol, began on November 29. Each BSSB IDO costs about 0.27 US dollars, and is currently quoted at 9.5 US dollars, with a cumulative increase of about 40 times; Bitcoin was launched on December 15 The ecological DID service platform GodID token BDID has a public sale price of $0.0029 and is currently priced at $0.06, with a return of more than 20 times.

Bounce Finance has become an IDO benefit platform within the Bitcoin ecosystem because of stories of the rise and wealth creation of IDO projects one after another. After successfully issuing MUBI, the Bitcoin ecosystem asset, Bounce Finance officially announced a series of actions to enter the Bitcoin ecosystem.

On November 25, Bounce Finance posted on social media that it is preparing to broadly cultivate the BTC ecosystem and announced that it will focus on incubating BTC projects and providing auction support.

On December 1, it was announced that Bounce Bit, a Bitcoin DeFi application chain built on Binance BTCB, will be launched. Among them, BTCB is a packaging asset issued by Binance that anchors BTC’s real assets 1:1. Users can obtain and BTCB by locking in BTC, so that BTC holders can use BTCB to participate in on-chain DeFi activities without abandoning their Bitcoin positions, thereby obtaining more revenue. The Bounce Bit network will build a range of DeFi applications around BTCB and the native AUCTION asset.

On December 6, Bounce Finance announced the brand upgrade to Bounce Brand. Its products include Bounce Bit, a Bitcoin-based application chain, Bounce Box, a one-stop portal for exploring Bitcoin DeFi applications, and Bounce Auction, a Bitcoin ecosystem asset auction platform.

On December 19, Bounce Brand stated that IDO will launch a token offering using the “one stone, two birds” strategy. Two independent teams will jointly issue a token. The project identity is kept private, using AUCTION and BitStable’s stablecoin DAII to participate, and there are two auction pools.

Taking advantage of this boom in the Bitcoin ecosystem, Bounce Finance successfully transformed from an auction platform forgotten by users to a leading IDO application that deeply cultivates the Bitcoin ecosystem. Among them, the native token AUCTION has increased by about 108% in the past 7 days and more than 40% yesterday. The current price is 40.78 US dollars, and the market value is 260 million US dollars.

Bitcoin cross-chain bridge protocol Multibit

Multibit Bridge (MUBI) is a cross-chain protocol within the Bitcoin ecosystem. It supports BRC20 and ERC20 assets to be easily cross-chain, and allows assets such as Ethereum and BNB Chain to be transferred across chains between EVM networks and Bitcoin networks.

MultiBit streamlines the process of transferring tokens across the Bitcoin BRC20 and EVM networks. The specific cross-chain implementation process is that the user first deposits the cross-chain BRC20 tokens to the BRC20 address provided by Multibit, and after the Multibit protocol is confirmed, the tokens will be minted and released to the user on the corresponding EVM target chain. When users want to roll back BRC20 tokens, Multibit will destroy the corresponding amount of tokens from the EVM chain and release the corresponding BRC20 tokens on the Bitcoin chain.

However, Multibit aims not only to be a cross-chain bridge; in the future, it will also integrate a multi-faceted BRcFi application ecosystem such as OAMM transactions, revenue aggregators, and stablecoin issuance.

Among them, OAMM trading refers to an automated market maker (OAMM)) decentralized trading protocol launched by Multibit based on Ordinals assets. The trading platform is designed to trade Ordinals (ORDI) tokens, and all fund pools use ORDI token pairs for price discovery; revenue aggregators are used to optimize the earnings situation of ORDI tokens in BRCFi applications; stablecoins are also minted using ORDI as collateral, etc.

The Multibit platform was first launched in May, but it didn’t get noticed until November. What brought it out of the market was the launch of the MUBI token. On November 12, MUBI completed the IDO auction on Bounce Finance, which opened with a 1140% increase.

The wealth effect brought about by IDO quickly made Multibit a star project in the Bitcoin ecosystem. The MUBI token has increased by about 131% in the past 7 days, and is currently priced at about 0.3 US dollars, with a total circulation of 1 billion dollars, a circulation volume of 950 million units, and a market value of 290 million US dollars in circulation.

Bitcoin ecosystem stablecoin bitStable

bitStable (BSSB & DAII) is a stablecoin protocol within the Bitcoin ecosystem. The application uses the BSSB & DAII dual token system. The former BSSB is a governance token, and the latter DAII is a stablecoin.

Currently, platform users can use “BSSB Governance” approved assets as collateral to generate DAII. Currently, only ORDI, MUBI, and BTCB assets are supported as collateral. In addition, bitStable has cross-chain DAII to Ethereum, enabling DAII holders to exchange USDT.

As of December 19, the BitStable platform had minted 30.75 million DAII, of which 30.54 million were in ERC20 format and only 210,000 in BRC20.

BitStable first appeared when issuing the BSSB token on the IDO platform Bounce Finance, which has risen by 176% in the past 7 days and is currently priced at 7.5 US dollars. The total number of BSSB issues is 21 million, and the market value is 180 million US dollars.

However, it should be noted that the BitStable protocol has continued to be disputed since its launch. First, during the BSSB token sale, the official website was unable to open, and users even suspected that it was Rug. Officials stated that it had experienced coordinated attacks and DDOS attacks carefully planned by miners and high-tech developers, causing unequal token distribution, and unauthorized wallets to obtain most of the usable supply, and the team destroyed 75% of the auctioned tokens. However, the BitStable X social media account was only online for two days at the time of the auction, and the first post was posted on November 27th.

Furthermore, some users said that the three projects Bounce Finance, Multibit, and BitStable come from a team to build a Bitcoin ecosystem integrating IDO, cross-chain, and stablecoins. This speculation is not fabricated out of thin air; both the IDOs of Multibit and BitStable are executed on the Bounce Finance platform, and future IDO projects on the Bounce Finance platform can use bitStable’s stablecoin DAII as a ticket to participate, and bitStable also supports MUBI assets etc. as collateral to mint DAII, etc., and the three are inextricably linked.

DID Market Aggregator GodID Launches Bitcoin Ecosystem DID Management Tool bDID.io

Like Multibit and BitStable, the DID aggregation tool GodID also issued the BDID token on Bounce Finance, and announced on December 18 that it had completed a new round of financing led by NGC Ventures with a valuation of 30 million.

Interestingly, Jack Lu, founder of Bounce Finance, is also a partner at NGC Ventures. Some users lament that the products launched on the Bounce Finance platform are all related to NGC Ventures, and NGC Ventures is probably the real trader of a series of Bitcoin ecosystem projects such as Multibit.

GodID is a decentralized identity DID market aggregator. Its core functions are batch search, query, registration, transaction and management of DIDs, and currently provides services for ENS, Space ID, and Bitcoin Ordinals DID.

On December 15, GODID’s sub-platform bDID.io issued the token BDID on Bounce Finance. bDID.io was incubated by GODID, and the platform can support mainstream DID registration, transactions, and management of various suffixes created by the Ordinals Protocol. E.g. .sats, .bitmap, .btc, .unisat, .bitter etc.

Of these, the total amount of BDID issued is 500 million, and the IDO price on the Bounce Finance platform is about $0.00297. The current price is $0.04, and the return on investment is about 20 times.

Lending representative products: BitSmiley, Liquidium, Liquidium

stablecoin lending protocol BitSmiley

BitSmiley is a stablecoin loan agreement “MakerDao+Compound” in the Bitcoin ecosystem. This product mainly consists of decentralized overcollateralized stablecoin agreements, loan agreements, and derivatives agreements. On December 14, BitSmiley announced the completion of a funding round led by ABCDE and OKX Venture.

Among them, bitUSD is a stablecoin generated by BTC as an overcollateralized asset and softly linked to the US dollar. The collateral mechanism is similar to MakerDAO, except that bitUSD is issued with BTC as collateral. Any BTC holder generates bitUSD by depositing bitcoins into the “BitSmiley Treasury” smart contract, and every bitUSD in circulation is supported by overcollateral.

In the BitSmiley protocol, bitUSD can be used to settle debts, such as paying stabilization fees or interest on loans. Users deposit a specific amount of BTC into BitSmiley Treasury to generate bitUSD. In order to get back the deposited BTC, users need to repay the bitUSD generated and pay a certain stable minting fee.

With the stablecoin bitUSD at its core, BitSmiley launched BitLending, a peer-to-peer lending protocol based on BRC20.

Currently, BitSmiley’s products have not been launched, and the official Twitter account was only officially registered on December 4.

NFT and BRC20 lending protocol Liquidium

Liquidium is a P2P lending protocol built on the Ordinals protocol that allows users to borrow and lend bitcoins using ordinal inscriptions and BRC20 as collateral. On December 11, it was announced that the $1.25 million Pre-Seed round was completed, and Sora Ventures and others participated.

Currently, the Liquidium platform only supports Ordinals ordinal inscription NFTs as collateral for borrowing. The BRC20 lending product has not yet been officially opened to the public and is in the whitelist application stage.

The Liquidium platform does not use a settlement mechanism based on the value LTV of the loan collateral. The loan status depends on repayment within a set period. If not repaid at maturity, the loan is in default, and the collateral is owned by the lender.

BRC20 Ecological Stablecoin Lending Protocol Uplink Finance

Uplink Finance (UPFI) is a stablecoin lending protocol specially designed for BRC-20 asset investors such as ORDI and SATS. It claims to be MakerDAO in the BRC-20 ecosystem, and BRC20 asset holders can release the liquid value of their assets without selling.

On the Uplink Finance platform, users deposit BRC-20 assets such as BTC, ORDI, and SATS as collateral to over-collateralize the platform’s stablecoin UPSD.

On December 12, Uplink Finance announced that SATS and ORDI will be the first collateral for the platform’s stablecoin minting, while holding the user’s airdrop platform governance token UPFI on their assets.

Currently, the Uplink Finance platform mortgage lending page is not officially launched.

Ordinals ecosystem infrastructure tools: donation platform TurtSat and Tap Protocol to build the OrdFi app

TurtSat: Gitcoin within the Bitcoin ecosystem

TurtSat (TURT) is a community-led Ordinals donation platform whose mission is to become the Gitcoin of the Ordinals world. The platform features a donation agreement, which aims to enable more open source developers and communities to participate in the development of the Ordinals ecosystem and enjoy the benefits. Anyone can build and donate to the Ordinals ecosystem agreement through Turtsat.

Simply put, project parties can get funding through TurtSAT, and users can earn money by supporting donation projects. Currently, the TurtSat platform supports token issuance for multiple Bitcoin ecosystem projects in the form of Lanchpad, with functions similar to Bounce Finance.

As of December 20, the TurtSAT platform has issued BRC 20 Asset Protocol Chamcha Token CHAX, BRC 20 Cross-Chain Bridge Multibit Token MUBI, Ordinals Aggregation Platform NXHUB Token NHUB, and Ordinals Lending Platform Dova Protocol Token DOVA, Bitcoin Ecosystem Gaming Platform Rabbit Token RAIT, Bitcoin Ecosystem Metaverse Gaming Svarga token SVGR, etc., these projects are all infrastructure construction platforms related to BRC 20 and Ordinals within the Bitcoin ecosystem. Yesterday, the TurtSat platform will also launch the Bitcoin staking platform Zooopia token ZOOA.

On December 7, TurtSAT announced the launch of a staking pool for its native token TURT to support TURT holders to participate in projects to issue tokens on the platform to obtain more revenue. Additionally, TurtSat will also issue a new asset, EGGS, which will need to be obtained by staking TURT tokens. EGGS can be redeemed for the Launch project’s whitelist. In the future, EGGS will be used in more scenarios such as voting on project launches and direct redemption of cooperative token packages.

Among them, TurtSat’s native token TURT has a maximum circulation of 1 billion, a provisional price of 0.078 US dollars, and a market capitalization of 78.73 million US dollars. As for the amount of EGGS released, it was not disclosed.

Tap Protocol, the platform used to build OrdFi

Tap Protocol, a platform for building OrdFi applications launched by Ordinals indexing protocol Trac, announced the completion of a $4.2 million funding led by Sora Ventures on December 16.

Trac is an infrastructure project in the Ordinals ecosystem that aims to provide a decentralized system to track and access ordinals-related protocols, such as BRC20, sats domain names, etc., and provides a standardized interface for how to create, manage, and trade digital assets on the Ordinals platform.

Tap Protocol, on the other hand, is a platform for building OrdFi applications. It will provide a range of tools to help developers build DeFi products based on Ordinals without even the need for complicated Bitcoin Layer 2 networks, such as providing segmentation of inscriptions and enabling DeFi applications on inscriptions.

In the future, Tap Protocol will launch products such as Ordinals fragmented products, exchange pools, loans, and staking.

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