There is a new tokenized Bitcoin project in the decentralized finance (defi) ecosystem, which recently received $1.4 million in investment from blockchain investors. The project called Boringdao is a decentralized bridge between Ethereum and alternative blockchains, and plans to launch the company’s bBTC tunnel this month to introduce another tokenized Bitcoin.
On October 8, 2020, the Boringdao project announced that the company has raised $1.45 million from many investors. The Boringdao website stated that the project is a bridge between various blockchains and Ethereum. The startup’s website portal states: “We provide opportunities for non-ERC20 assets to maximize utility and generate revenue.”
In essence, Boringdao wants to tokenize all assets in the world, and the project plans to deploy its bBTC tunnel this month. The token bBTC will be a tokenized Bitcoin (BTC) asset, similar to renBTC, WBTC and other Ethereum-related projects.
The company announced this month that it raised $1.4 million from investors such as Puzzle Ventures, Snapfingers, Hashkey, SNZ, Youbi and others. In addition to the Bitcoin tokenized by bBTC, Boringdao also launched the BOR token, which will be used for coinage and farming purposes. As far as bBTC tokens are concerned, the assets will be mortgaged 200% using the double mortgage model.
The company announced in detail on Thursday: “Boringdao will start in October and start the bBTC tunnel to support the implantation of BTC into bBTC in a dual guarantee mode. Compared with other packaged BTC solutions on the market, it will provide the highest level of assets Security.” The double guarantee mechanism was also described in the company blog published that day.
“Each Bitcoin is backed by more than 200% of assets, including a real Bitcoin (Multi-sig managed by a number of well-known institutions),” Boringdao developer explained. “Approximately equivalent ERC-20 assets are locked in the contract layer (controlled by smart contracts). There is no doubt that 200%>100%, so bBTC should be more secure.”
At the time of publication, a large amount of BTC was locked in a token-based ETH-based protocol. Hold 130,329 BTC or the equivalent of 1.4 billion U.S. dollars in Bitcoin on Ethereum on Friday afternoon.
According to Dune Analytics, the top project with the most bitcoin locks is Bitgo’s WBTC (WBTC) project, with a total of 95,197 tokens in circulation. After WBTC are renBTC (25,598), hBTC (4,810), sBTC (2,437), imBTC (1,730), tBTC (443) and pBTC (120).
What do you think of the latest tokenized Bitcoin project created by Boringdao? Let us know your thoughts on this topic in the comments section below.
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