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0xngmi

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11 Nov, 12 tweets, 4 min read

If you listen to CT it's easy to end up thinking that bitcoin is boomer tech and bitcoin defi is a meme.

However, this is just not true, bitcoin has an active set of people building on it, and a thriving ecosystem.

Here's a thread on it 👇

@hodlhodl

@hodlhodl is doing overcollateralized lending directly on top of bitcoin (very similar to compound/aave, but loans are peer-to-peer instead of pool-based), allowing anyone to borrow usd with bitcoin collateral. They also have a p2p bitcoin on/off-ramp market

@bisq_network

@bisq_network is a decentralized market for p2p bitcoin/fiat trades. They have a token-based DAO that receives cashflows from the trading and handles governance over the system.

@LNMarkets

@LNMarkets is a derivatives DEX built on top of lightning that has BTCUSD futures and options

@wasabiwallet

There are multiple decentralized trustless mixing solutions for bitcoin, such as @wasabiwallet and @SamouraiWallet. These can be used to anonimized your bitcoin (similar to tornado cash but much more p2p)

There's some people working on Discreet Log Contracts markets for bitcoin. These can be built directly on top of bitcoin and can be used to create prediction markets and options.

RGB is a protocol that is building smart contracts on top of the lightning network. Their contracts are limited because everything needs to be enforceable on L1 and the bitcoin virtual machine is very basic, but it has cool stuff like private smart contracts

@SovrynBTC

RSK is a bitcoin sidechain that is an ethereum fork merge-mined with bitcoin, which has all the typical DeFi stuff: dexes, money markets...

Some of the protocols on there are @SovrynBTC and @moneyonchainok

Liquid is another bitcoin sidechain, which has anonymous transactions and smart contracts through a language called simplicity. The chain validators are mostly big exchanges.

Overall, bitcoin defi is much more focused on censorship-resistance and the narrative that bitcoin is money (hence the focus on payments, mixing and decentralized on-ramps), so the products there are quite different than what we have in ethereum

but the narrative that bitcoin is a boomer coin, it sees no tech progress or that bitcoin defi doesn't exist is just plain wrong.

It's always important to do your own research and establish your own opinions instead of blindly following the current prevailing narrative on CT.

@DefiLlama

Btw if you are working on any of these platforms please contact me, I'd love to get you listed on @DefiLlama. I've tried to list these multiple times but there's usually some problem like APIs that include only partial data

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More from @0xngmi

0xngmi

@0xngmi

12 Nov

Something usually overlooked for stablecoins like UST, alUSD, MIM or FRAX is that what matters the most for their success is people wanting to hold the stable.

If nobody is willing to hold them, that puts a cap on their growth and impairs long term viability.

A thread 👇

Let's take a look at alUSD, if someone wants to use alchemix they'll mint 100 alUSD, but they can't use that anywhere, so they'll swap it for USDT, which they can use freely.

This swap lowers the price of alUSD, slightly depegging it.

What keeps alUSD in peg is that someone that minted alUSD before will buy it back and burn it to repay their position at a discount. But this makes the system shrink by 100$, which combined with the 100$ growth, cancel themselves out: system can't grow

Read 11 tweets

0xngmi

@0xngmi

11 Nov

Celer has built an L2 rollup for farming that aggregates users movements and executes them together, saving on fees.

It works like a bus, if 3 people want to move their farming from AAVE to curve, celer aggregates that into a single tx (avoiding 2 txs) 👇

The way it works is that once you have deposited money on the rollup, you can decide in which protocol you want to farm with your money, then you can move your assets between these only paying rollup fees (much lower since only calldata needs to be sent to L1)

Then, every 6 hours, all the user changes are aggregated together and funds are moved from protocol to protocol in L1 (eg: if a person chooses to move 30$ from aave to curve and another wants to move 20$ from curve to aave, 10$ will be moved from aave to curve in 1 tx)

Read 6 tweets

0xngmi

@0xngmi

10 Nov

Idea: untraceable optimistic p2p gambling on bitcoin

a common issue for bitcoin gambling sites is that offramps like coinbase will blacklist all addresses that deposit/withdraw from these sites

my system solves this by making txs that look like regular transfers 👇

Bob and alice want to gamble on a coinflip, so they both pick a random number and send the hashed value to the other. Using these hashes both can generate an address with a taproot script that has two branches: one that uses a 2-of-2 multisig and one that verifies the coinflip

Then both alice and bob send their coins to that address and reveal their numbers. They can tell who's the winner so they can:
- cooperate and sign a multisig tx that sends money to the winner
- not cooperate, forcing a verification of the coinflip

Read 10 tweets

0xngmi

@0xngmi

26 Oct

I wonder if it may be easier to reach anti-nft artists by accepting their arguments instead of laughing them off or going against them, especially since a lot of these are actually true

- When you create NFTs that get sold you are increasing the fees paid to miners, which leads to an increase of energy spent today (if efficient market) or in the future (if max capacity is reached)

- Most NFTs are used for speculation, by creating NFTs you are enabling that

Read 10 tweets

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