BadgerDAO, a decentralized autonomous organization focused on bringing Bitcoin into DeFi, has released a "purple paper" for its eBTC Protocol. This protocol allows users to borrow synthetic Bitcoin without any upfront fees or interest by using Lido's liquid staking ether derivative token, stETH, as collateral. The protocol generates revenue by taking a percentage of accrued staking yield from the total system collateral, and employs a liquidation mechanism to ensure solvency. eBTC aims to be a trustless synthetic version of Bitcoin in DeFi, with a minimized governance mechanism and reliable oracle infrastructure for price feeds.
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