How to participate in the token sale after reading the Bitcoin DeFi protocol BitStable?

On November 27, Bounce Finance announced that BitStable, a decentralized asset protocol, will launch its native token $BSSB on Bounce Launchpad at 12 o’clock on November 29, and users can stake $AUCTION tokens or obtain corresponding $BSSB shares through an auction mechanism.

Within two hours of Bounce Finance’s announcement, $AUCTION saw a more than 15% increase in price. What is BitStable?How do I get BSSB tokens?BlockBeats has compiled it based on the available information.

How do I get BSSB on Bounce Finance?

According to the information, the total supply of $BSSB is 21 million, and the total amount raised is $500,000. 50% of this distribution will be distributed through Bounce Finance, which will be divided into two rounds:

60% of the allocated will be made by staking Auction (by staking AUCTION tokens to receive the corresponding $BSSB allocation);

40% of the allocated will be made through the auction mechanism (1 $BSSB = 0.0000233 ETH).

After the distribution of $BSSB is over, the BSSB protocol will be officially live. At present, users can browse the protocol introduction on the BitStable official website, and other related functions are not yet available.

Users can stake AUCTION in advance. In the Bounce homepage, click on the Launch Token Portal to enter the Staking Acution interface, connect the wallet, and click Stake to staking.

BitStable, a Bitcoin-based cross-chain DeFi protocol

According to BitStable’s official website, BitStable is a decentralized asset protocol based on the Bitcoin network, through which anyone can generate $DAII stablecoins against collateralized assets in the Bitcoin ecosystem anywhere. BitStable has a dual-token system and a cross-chain compatible structure, with its tokens being $DAII and $BSSB.

$DAII is a stablecoin (BRC 20) whose value and stability comes from the robustness of the Bitcoin ecosystem’s assets, including BRC 20, RSK, and the Lightning Network, among others. In addition, BitStable is envisioned to bring the Ethereum community into the Bitcoin ecosystem with its cross-chain $DAII capabilities. The total supply of $DAII is 1 billion.

$BSSB is the governance token of the platform that is used by the community to maintain the system and manage the $DAII, and BitStable also incentivizes holders of $BSSB through dividends and other measures.

The total supply of $BSSB is 21 million, of which, excluding 50% of the public sale on Bounce Finance, the team will hold 5% of $BSSB (6 months locked and 15 months linear vesting), 3.5% of the airdrop quota, 36.5% of the staking rewards, and 5% of LP (locked indefinitely).

DAII Module

The DAII module in the BitStable protocol is a cornerstone feature designed specifically for generating and managing DAII stablecoins on the Bitcoin blockchain. Given Bitcoin’s limitations in terms of smart contract functionality, the DAII module focuses on the simplified minting and burning process using ORDI assets at the initial stage.

Minting & Redemption

Users can mint DAII using assets approved by BSSB Governance as collateral (only ORDI and MUBI were supported in the early days). This process involves locking ORDI in the BitStable protocol on the Bitcoin blockchain.

When users need to redeem collateral or USDT on the Ethereum chain, they need to redeem $DAII on the BitStable platform to bring $DAII back into balance.

Cross-Chain & Mining

In addition, DAII minted on the Bitcoin blockchain can be bridged to Ethereum as an ERC 20 token, and this cross-chain feature enhances DAII’s liquidity and usability in the broader crypto ecosystem. Users who receive $DAII on the Ethereum chain can use stablecoins such as USDT or USDC for one-to-one substitution, and then participate in economic activities across chains to the Bitcoin chain.

BitStable has partnered with MultiBit Bridge for cross-chain transfers between Bitcoin, EVM, and other L1s.

To participate in mining and earn rewards, users need to use a MultiBit bridge to bridge their $DAII back to the Bitcoin blockchain. This process ensures that mining activities are securely anchored to the Bitcoin network. Rewards for mining activities are distributed in BSSB, aligning incentives with the governance and stability of the BitStable ecosystem.

Users can bridge their $DAII back to Ethereum as an ERC 20 token. This regression process is crucial for users who wish to swap DAII for USDT or participate in the Ethereum DeFi protocol. On Ethereum, users can swap their DAII for USDT, completing the cycle of cross-chain interactions and providing a seamless user experience.

Overcollateralization and liquidation

BitStable says it will set a relatively safe and hard-to-liquidate overcollateralization ratio based on the price fluctuations of the collateral, assuming an overcollateralization ratio of 50%, which means that users can only get 50% of the collateral value of $DAII. Although the overcollateralization ratio is set, BitStable still sets the liquidation plan as a safety plan and the setting as a reference health factor.

Staking and Liquidation Formula Calculation (Collateral as an Example)

If ORDI has an overcollateralization ratio of 80%

Maximum number of buildable DAIIs = ordi quantity * ordi price * 20%

Health coefficient = [ 1 - construct DAII value / (ordinal number * price) + 0.2 ]* 100

Staking Ordi requires 80% overcollateralization. For example, let’s say 1 ordi = 100 USDT, that is, staking 1 ordi can get 20 DAII. At this point, the health factor is [ 0.2 + (1-20/100)]* 100 = 100

If the user builds only 10 DAIIs, the health factor is [ 0.2+(1-10/100)]* 100 = 110

When the ORDI price drops to 50 USDT, the health factor is: [ 0.2+(1-20/50)]* 100 = 80

When the ordi price drops to 20 USDT, the health factor is: [ 0.2+(1-20/20)]* 100 = 20 (Forced liquidation required)

DAII 挖矿

$BSSB is the governance token of the platform that stakeholders use to maintain the system and manage $DAII. Holding BSSB can obtain platform income dividends and voting rights, and you can also have a certain acceleration right in the early stage.

Users can stake $DAII in the “Farm” to get $BSSB. It is important to note that Farm only runs on the Bitcoin chain, so when a user’s $DAII is swapped for USDT on the EVM chain, they will also need to use MultiBit to stake $DAII on-chain (ERC 20).

If you want to get higher mining returns, you can also stake $BSSB to get supercharged stake and increase the stake weight of $DAII.

More info

The roadmap for the future is written in BitStable’s whitepaper. BitStable will integrate with Rootstock (RSK) to bring Ethereum-like smart contract functionality to Bitcoin-based DAII. This allows for the development of sophisticated, decentralized financial instruments and automated governance processes that enhance the functionality of the protocol while maintaining the inherent security of the Bitcoin blockchain.

Deployment on RSK will involve setting up a series of interconnected smart contracts. These contracts will manage all aspects of the DAII stablecoin, such as staking, issuance, redemption, and governance. BitStable ensures a high degree of automation, security, and transparency in its operations by adopting a structure similar to MakerDAO.

Later, BitStable plans to integrate Taproot, which will enhance the DAII transaction structure in combination with Taproot’s Schnorr signatures to make it more space-efficient and cost-effective, and leverage Taproot’s Merkelized Alternative Script Tree (MAST) and Pay-to-Taproot (P2 TR) features to provide DAII with more versatile and private transaction options.

At the moment, BitStable’s official Twitter account has not yet appeared, and BlockBeats will continue to monitor the follow-up information.