Thread by @0xRafi

1/ $AC @NUTSFinance (acoconut.fi).
Here is a low-cap gem that is bringing cross chain liquidity and yield aggregation to $BTC, with a platform already live on Ethereum and BSC, and more blockchains to come.
This is a <$10M MCap, $BADGER ($326M) meets $MTA project...

2/ Just looking at the team and some of the project’s backers, we can see that @NUTSFinance has high ambitions. The team includes former managers/partners/employees of S&P Global, China Growth Capital (VC fund with over $1.2bn AUM), Google and Yahoo, to name a few.

3/ Angel investors include the co-founder of $DODO and the former head of Apac for @Ledger, and in February the project received a $500k strategic investment from @Block_Ark. Considering this was an under $5M MCap project at the time, this is a major vote of confidence.

4/ Add to this the fact that angel investors also included an “undisclosed Bitcoin miner”, and we have a project whose aim is to facilitate yield earning on $BTC across DeFi applications on multiple chains, backed by Bitcoin miners and major VC funds.

Hard not to be bullish.

5/ Now let’s get to the product itself. ACoconut aims to offer a suite of products to facilitate the movement of $BTC across multiple chains and DeFi applications. And the 2 main components of ACoconut’s product suite are the $acBTC and the $BTC+ tokens.

6/ $acBTC is a BTC pegged token composed of an index of BTC tokens and integrating Curve’s StableSwap mechanism, working like a mix between mStable and Curve. $acBTC on Ethereum is currently backed by $renBTC & $WBTC, and other tokens will be added through governance voting.

7/ $acBTC can also be staked in ACoconut’s platform to earn transaction fees from the acSwap swap product (much like Curve LPs earn a share of Curve’s tx fees), $acBTC mint/redeem fees, and interest from acLoan, an upcoming lending product on the ACoconut platform.

8/ But the main point of $acBTC is that it will exist on multiple chains, allowing for easy cross-chain bridging of BTC. Right now, it’s tricky to bridge BTC tokens between chains, as different chains have different BTC pegged tokens (eg $renBTC and $WBTC on Eth vs $BTCB on BSC)

9/ Through $acBTC, users will be able to easily move between chains to seek the best DeFi yields by bridging their $acBTC tokens between for example Ethereum and BSC, even though the underlying BTC pegged tokens in one chain may not exist in the other.

10/ And this brings us to BTC+.
BTC+ is the equivalent of a BTC yield earning vault token, but instead of accruing value within the token (like @iearnfinance yTokens or @CurveFinance crvTokens) BTC+ will have positive rebases to reflect the earned yields, like @AaveAave aTokens

11/ Thanks to this positive rebasing mechanism, $BTC+ will keep its peg to the $BTC price, opening the door to its use in all sorts of DeFi applications in the same manner as any existing $BTC pegged tokens, but with the added benefits of positive rebases.

12/ As an example, one could use BTC+ as a BTC pegged collateral for borrowing other assets, and see its collateral value increase over time through rebases. Or one could provide liquidity for BTC+ pairs on AMM DEXs and earn both BTC+ yields and LP fees at the same time.

13/ So we have the two main pieces of the puzzle:
- $acBTC as a $BTC pegged bridge token carrying $BTC across multiple chains
- $BTC+ as a $BTC pegged yield aggregator token, seeking the best yield across DeFi applications and distributing this yield through positive rebases.

14/ Now we put these two together and here we have our mind-blowing innovative product.

A BTC yield aggregator that automatically moves liquidity across chains to earn the best yield on your BTC!

No wonder the “undisclosed bitcoin miner” is interested...

15/ So how close is ACoconut to achieving all of these goals?

Very close indeed. V1 of the platform has been live on Ethereum since October 2020, including savings vaults (acSavings), acSwap and minting of $acBTC from $renBTC, $WBTC or native $BTC (though a renVM integration).

16/ ACoconut V2 is live on BSC, with minting of the first BTC+ assets, for now based on “single+” strategies (vBTC+ for @VenusProtocol vaults, autoBTC+ for @autofarmnetwork vaults, etc), and bridging of the $AC governance token between Ethereum and BSC.

17/ Next will be the launch of V2 on Ethereum with single+ strategies (next week), the launch of governance (end of April) with voting of new BTC pegged tokens to be added to acBTC, and finally the launch of the “composite” BTC+ token, seeking yield across multiple protocols.

18/ The team has mentioned that once BTC+ goes live as a multi-protocol yield aggregator, they will be able to start announcing a full-on series of partnerships for the integration of BTC+ in existing DeFi protocols (eg. support of BTC+ as collateral for lending protocols).

19/ And once the full suite of $acBTC bridges and single chain $BTC+ yield aggregators is live on both Ethereum and BSC, the next step will be the integration of other blockchains (such as Polkadot, HECO, Fantom, Avalanche…), allowing BTC+ to seek yields across multiple chains.

20/ Now to the $AC token itself. $AC is the governance token for the ACoconut ecosystem that holders can stake to earn a share of protocol revenues, boost liq mining rewards, and to decide through governance on protocol parameters such as supported assets, protocol fees, etc.

21/ Max supply of $AC is 21M tokens, with 15M allocated to community & liquidity incentives and 6M to protocol development (no pre-sale or pre-mine). Current circ supply is 2.0M tokens (excl Uniswap liquidity, team’s multi-sig and vested liq rewards), putting circ mcap at $9.5M.

22/ The $AC token’s V2 Tokenomics was announced today, including new features such as:
-Dynamic emissions model to stimulate TVL growth, where emissions rate increase as minting of single+ and BTC+ tokens increase
-Staking $AC to boost liq mining rewards (like with veCrv tokens)

23/
-Buybacks of $AC supply using protocol revenues, to replenish liquidity mining pool over time
-Part of the supply going to an “acSafe” pool, an insurance pool through which users can purchase protection against a loss of peg by any of the underlying BTC tokens backing $acBTC

24/ So there we have it. A $9.5M mcap project, with a excellent team, big backers, a super active pipeline for the next weeks and months, and bringing actual utility and innovation to a field where the most obvious competitor, @BadgerDAO, is now sitting at a $326M market cap.

25/ A few links to dig further:
- Docs: docs.acoconut.fi
- Presentation of ACoconut’s cross chain yield aggregation: medium.com/nuts-foundatio…
- ACoconut V2 presentation: medium.com/nuts-foundatio…
- V2 tokenomics: medium.com/nuts-foundatio…