From cointelegraph by Josh O'Sullivan

EverValue introduces Bitcoin backing in DeFi with EVA to create new standards of valuation and establish predictable growth in an unpredictable space.

Decentralized finance (DeFi) cracks the door open for opportunities otherwise inaccessible in traditional finance (TradFi). However, for investors looking to put their Bitcoin into use, DeFi landscape presents challenges. Most DeFi projects require investors to deposit BTC on centralized platforms, offering minimal returns and exposing them to operational risks.

In a market often characterized by high volatility and opaque tokenomics, DeFi users find few options that provide utility for their BTC assets. A new approach to DeFi is taking place, combining the stability of Bitcoin backing with the potential of blockchain technology through transparent and secure value mechanisms.

Bitcoin-backed DeFi

EverValue is a DeFi project built on the Arbitrum network. The project integrates Bitcoin and its stability into the DeFi space, offering predictable and secure growth.

EVA token is at the core of EverValue’s system. The token operates with a Bitcoin-backed “Burn Vault” designed to establish and maintain a steady but rising minimum price. BTC can only be withdrawn from the Burn Vault by burning EVA tokens, and this mechanism ensures EVA maintains a value parallel to Bitcoin. Users can store the token in their own wallets with no need for staking or lockups.

EverValue achieves stability through a capped token supply of 21 million tokens — as an effort to embed scarcity into its tokenomics model — and a burn mechanism to further increase scarcity and drive long-term stability.

The Burn Vault operates on a smart contract that aims to increase the token’s price floor daily for stable and predictable valuation. Receiving deposits of wrapped Bitcoin (wBTC), the vault secures a constant minimum value for EVA token. This system currently holds over 110 wBTC and grows by about 0.3 BTC daily from Bitcoin mining operations and token sales, ensuring continuous price floor appreciation and a dependable value base for investors.

Another key feature of the EverValue ecosystem, the whale-proof mechanism, limits the influence of large token holders. The daily increasing price floor safeguards against market volatility while ensuring stable value without the influence of large holders, creating a more balanced environment for all participants. This is achieved thanks to the burn mechanism, which allows BTC withdrawals only by burning EVA tokens in the same proportion. Keeping the proportion of circulating EVA to wBTC backing the same ensures the burn price remains unaffected by the transaction.

To uphold security and trust, EverValue goes through regular audits by third-party auditors, particularly regarding the Burn Vault. EverValue collaborated with Hacken, a renowned cybersecurity firm specializing in blockchain security, for regular, in-depth audits. Regular audits allow tokenholders to monitor the integrity of the project and its mechanisms, instilling confidence in EverValue’s security-first approach.

Burning through the competition

During the presale, EverValue managed to raise over 75 BTC in the first week, more than doubling its initial target of 35 BTC. Since the presale, the project has already burned over 500,000 EVA and plans to continue burning 250,000 tokens each month, enhancing EVA’s scarcity. Continuous token burns, combined with Burn Vault appreciation, offer unique security to investors and strengthen EVA’s BTC backing.

Flor Ayala, the CEO of EverValue, believes Bitcoin should become an integral part of DeFi. “Our project aims to broadly integrate Bitcoin into the DeFi environment. Currently, we utilize synthetic forms like wBTC on the Arbitrum network, but our goal is to demonstrate the necessity of integrating Bitcoin into more complex systems,” she said, continuing:

“We aspire to be at the forefront of this movement, and as technology advances and adoption grows, we are ready to evolve alongside it. We will actively contribute to this evolution, making every effort to be part of the advancement in this field.”

EverValue’s unique solution provides value to both Bitcoin and DeFi users. By allowing Bitcoin users to participate in DeFi, projects like EverValue can expand the use cases of Bitcoin while presenting a reliable and stable choice for DeFi users.