A Yield-Generating Stablecoin: BXTB’s Vision to Transform Yield Farming
It is up to new projects to find innovative approaches to reinvigorate the DeFi niche, and BXTB is bringing innovation to DeFi.
The Covid pandemic, social unrest, and economic turmoil experienced by countries around the world have resulted in a loss of trust in fiat currencies and traditional finance.
This combination of factors has caused an increase in the popularity of blockchain technology and cryptocurrencies as people look for alternative saving and investment methods.
There is a specific niche that has taken the cryptocurrency world by storm over the last months: Decentralized Finance (DeFi).
This niche aims to create an alternative, decentralized, and digital financial ecosystem that doesn’t rely on the same pillars of traditional, and increasingly obsolete, traditional financial systems.
BXTB is Creating Yield Farming V2.0
BXTB is a dual blockchain and dual token platform developed and supported by the BXTB Foundation.
The goal of the platform is to create a high-throughput, high-liquidity, and yield-generating stablecoin that is suitable for enterprise use-cases.
By using the BXTB DeFi protocol, investors will be able to mine BXTB by using a Proof-of-capacity consensus algorithm, staking it by attaching USDT to receive both yBXTB and CHIPS as rewards, and earn yield by holding yBXTB.
New Ways to Use Blockchain
The protocol uses the CHIP token, a stablecoin that is intended for enterprise use cases and to be used by industries that require transactional tokens.
This includes growing sectors like Esports, gaming, and gambling, which have gained massive attention as different countries declared lockdowns that increased the demand for online entertainment.
CHIPS allows these industries to make use of digital assets without the need of owning collateral or having reserves of their own, as the stablecoin overcollateralizes over time.
The Problem With Current Stablecoins
At present, stablecoin projects are often focused on maintaining their pegs through various
collateralization mechanisms or through custodian services like fiat ‘vaults’.
Because of the need to have strong finality and readily-available access to pricing oracles, they are limited to popular blockchains such as Ethereum.
This limitation has resulted in these blockchains getting oversaturated, increased transaction times and gas prices, unverified transactions, etc.
The result is a loss of trust by users in DeFi solutions due to the potential disruptions in investments, lost opportunities, and losses generated by the current bottleneck.
With BXTB, transactions will be cheaper and faster than transferring stablecoins on Ethereum, opening up a huge range of possibilities for enterprise clients that are concerned with high fees and slow transactions.
But BXTB is not just a DeFi protocol designed to work around the flaws of the Ethereum network as an alternative blockchain, it also allows its users to generate yield in such a way that makes the name “Yield-chain” a perfect way to describe it.
BXTB, CHIP, and YBXYB: The Three Heads of the Protocol
The BXTB DeFi protocol has 3 different tokens: BXTB, CHIP, and YBXYB. Each token plays a specific function and offers users with different investment opportunities and benefits.
The BXTB token is used both as a governance token when not staked, as BXTB will transition to a DAO structure in the near future, as well as a means to mint the CHIP stablecoin by staking it and depositing other stablecoins as collateral.
Staking in such a way activates BXTB to form the third token, YBXTB. This new token entitles holders to revenue generated by transaction fees on the BXTB side chain, providing it with the traits of a yield-generating stablecoin
CHIP inherits the stability of the stablecoins deposited as collateral, while also benefiting from drastically improved speed and lower transaction fees thanks to the BXTB sidechain. As such, CHIP users can transfer stablecoins near instantly for almost no fees.
This process can also be reverted as CHIP tokens can be redeemed for other stablecoins like Tether and DAI at any time.
The stablecoin is also designed to overcome the limitations of Ethereum-based solutions and address the need for high-throughput and strong operational support for enterprise use cases while incentivizing participation through the distribution of CHIP transaction fees to YBXTB holders.
The interaction between these three tokens results in the first yield-generating mechanism with value generated outside of the blockchain ecosystem: a non-circular value creation cycle.
Proof-of-Capacity: A Unique and More Efficient Consensus Algorithm
BXTB’s unique Proof-of-Capacity (POC) consensus algorithm makes mining BXTB accessible to anybody, even those using low-power devices.
While Ethereum is still using a Proof-of-Work (POW) consensus protocol, BXTB’s allows users to mine BXTB by using available hard drive space to validate transactions, saving power, and removing limitations that prevent normal users from mining.
When compared to Proof-of-Stake (PoS), which is the consensus mechanism that will be implemented with Ethereum 2.0, PoC has proven to prevent the issues caused by cryptocurrency hoarding.
This approach provides more efficiency to the whole network while also facilitating the mining to users, allowing them to take an active role in the maintenance and running of the ecosystem when combined with decentralized governance.
Successful Ideas Becoming Reality
While BXTB is a fairly new project, it has already gone through different milestones and development phases that have helped it gain popularity as a project with huge potential.
The project’s testnet was successfully launched back in October 2019, with the mainnet following 4 months later in Feb 2020. The launch of the mainnet allowed users to start mining and contribute to the security of the network ever since.
In April of 2020, the BXTB token was listed for the first time on Biki, a Singaporean Centralized Exchange with over 1.5 million users worldwide.
BXTB partnered with GameWorks Technologies (GWT) in May of 2020, which provided the protocol with regtech measures designed to support the highest degrees of tax compliance, anti-fraud, and anti-money laundering policies.
Strategic Alliances
GWT is an Estonian operator with an Interactive Gaming License issued by the Cagayan Economic Zone Authority (CEZA) through North Cagayan Gaming and Amusement Corporation (NCGAC).
More recently, the company has been expanding its horizons and partnerships with the addition of the decentralized betting platform Justbet.
The collaboration with the Istambul-based company allowed the network to perform a token swap and integrate the BXTB strategy together with JustBet and GWX in a three-way partnership.
BXTB is now planning to roll out its Ethereum core contracts in October of 2020 to enable Phase 1 minting of CHIP and YBXTB tokens. This will form the foundation of its roadmap moving forward.
Minted CHIPs will also be ready for use with its new blockchain-based Pachinko games, which are ready for launch.
Building Community and Strong Partnerships
BXTB is aware of the importance of strong partnerships required by crypto projects to succeed and provide a better experience to their users. This is why the project is collaborating with other companies in addition to the partnerships with GWT and JustBet.
Some of the most important partnerships are probably those with the NEM foundation, Nvelop, and Blue Rock, each of them providing different benefits for the success of the protocol.
The company has the support of Nigel Hughes, the principal consultant for the NEM Foundation and CTO of GameWorksm, who is bringing his experience to the development of the BXTB ecosystem.
On the development and investment & development front, BXTB has partnered with Nvelop, a United Arab States-based investment and development firm focused on building the future of finance through blockchain.
Blue Block, is a reputable blockchain consultancy based in Hong Kong which is also working hand-in-hand with the BXTB foundation to revolutionize the DeFi niche and open the doors of cryptocurrency to users and enterprises around the globe.
BXTB has some great ideas, and with its talented team, they are sure to bring positive changes to the DeFi space.
The post A Yield-Generating Stablecoin: BXTB’s Vision to Transform Yield Farming appeared first on Blockonomi.
OhNoCryptocurrency via https://www.ohnocrypto.com/ @Nicholas Say, @Khareem Sudlow
