Bitcoin DeFi

DeFi on Bitcoin

Price Feeds: Accurate and timely price feeds for assets like equities, fixed income, REITs, ETFs, derivative chains, structured products, commodities, interbank interest rates, LIBOR, benchmark rates, Federal funding rates, Government loan rates, lending product rates, repo market securities, overnight lending, money markets, and others, can support Institutional-Grade DeFi applications such as decentralized exchanges (DEXs) and lending platforms.

Stablecoins: Oracles can provide real-time price data to help maintain the peg of Bitcoin-backed stablecoins.

New Innovation Enablement: Hybrid TWAP/VWAP Oracles, Mult-source VWAPS, Adaptive TWAP/VWAP, AI-Powered TWAP/VWAP Optimization to empower the next-generation of institutional and retail traders with better price discovery tools (currently only conceptual)

Yield Farming

Yield Farming is a new financial primitive within the DeFi ecosystem that is used to bootstrap liquidity and facilitate the fair distribution of a protocol’s governance tokens. In most yield farming applications, users who provide liquidity to a protocol are granted a reward in the form of its native governance token, serving as a growth subsidy.

Leveraged Yield Farming

Users can increase their yield and capital efficiency by using leveraged yield farming protocols that lend depositors capital through protocol-controlled undercollateralized loans. With these positions, borrowers can maximize the value of their assets through various yield farming strategies while lenders earn a passive income from borrowers who want to amplify their farming positions. This results in an application-specific money market specially focused around the activity of yield farming.

Self-Paying Loans

As a new DeFi-enabled financial primitive, self-paying loans enable users to deposit assets as collateral and borrow/mint synthetic assets to provide working capital. The deposited collateral is routed to a yield-generating protocol, where the yield is used to automatically pay down the debt over time, creating a highly capital-efficient borrowing position.

Decentralized Exchanges (DEX)

DEXs are on-chain trading venues that allow users to trade cryptocurrencies without taking custody of those assets or giving out personal information to a centralized institution. As DEXs grow in popularity, the desire for traditional trading strategies and advanced features currently available on traditional centralized exchanges grows in importance.

Automated Market Makers (AMM)

AMMs are an increasingly popular category of decentralized exchanges. Instead of traditional order books, AMMs are on-chain liquidity pools that facilitate asset swaps based on a predetermined price formula. By pooling capital, liquidity providers are able to earn passive yield and traders gain access to on-demand liquidity.

Cryptocurrency Payment Gateways

Cryptocurrency is becoming increasingly popular. Oracle networks bridges the gap by allowing payments on any other distributed ledger, such as Ethereum triggered from the Bitcoin blockchain. Additionally, Price Feeds can be used to provide exchange rates at the time of transfer or point of sale, ensuring users get fair market rates in a tamper-proof manner.

Multi Chain Transfers

An oracle and indexing network can enable the secure transfer of arbitrary data, tokens, and instructions between public blockchains. As the financial system increasingly moves assets onchain, cross-chain transfers can help securely transfer tokenized assets cross-chain, increasing access to the financial system for developing countries, enabling the creation of innovative new financial instruments, and enhancing liquidity for global markets.

DeFi on Bitcoin

• Price Feeds: Accurate and timely price feeds for assets like equities, fixed income, REITs, ETFs, derivative chains, structured products, commodities, interbank interest rates, LIBOR, benchmark rates, Federal funding rates, Government loan rates, lending product rates, repo market securities, overnight lending, money markets, and others, can support Institutional-Grade DeFi applications such as decentralized exchanges (DEXs) and lending platforms.

• Stablecoins: Oracles can provide real-time price data to help maintain the peg of Bitcoin-backed stablecoins.