On February 14th, Huobi Global announced the official launch of Bitcoin's DeFi project HBTC, which aims to increase the asset ceiling of the decentralized financial market by injecting the most liquid Bitcoin assets into the DeFi world.
According to the relevant person in charge of the Huobi public chain, most DeFi applications are currently active on the Ethereum public chain, and in the crypto world, Bitcoin assets are the absolute king. Therefore, HBTC will serve as a bridge, making it convenient for users Seamlessly use Bitcoin to participate in the operation of the DeFi market on Ethereum.
In addition, he added that Huobi plans to graft Bitcoin assets to other public chains with a good technical foundation and an active community in the future.
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It is reported that HBTC strictly adheres to 1: 1 guaranteed assets, that is, for every HBTC issued, its asset address will be guaranteed by 1BTC, ensuring that users can use HBTC and BTC to exchange 1: 1 at any time. At present, HBTC projects take the lead Joined Huobi Global, Huobi Korea, Huobi Cloud, and reached a consensus on cooperation with well-known DeFi projects MakerDAO-Oasis, dForce and DDEX. The project party also plans to support more DeFi projects.
According to the Ethereum blockchain data, the current number of assets in the HBTC contract address is 500.17 HBTC, which is worth about 5.12 million US dollars.
Features and principles of Bitcoin anchoring coins such as HBTC
In fact, similar to HBTC's Bitcoin anchor currency, there are already many in the cryptocurrency market, such as:
- In 2018, the decentralized trading platform Kyber Network and the cryptocurrency custody company launched the Bitcoin anchored asset WBTC on the Ethereum public chain;
- Exchange Binance also issued its own Bitcoin anchor coin BTCB on Binance Chain ;
- Wallet merchant imToken has also issued a Bitcoin anchor asset, imBTC ;
So what are their characteristics and benefits?
First, we start with the design of HBTC. HBTC projects support multiple user agents to provide users with redemption services, and then users can perform asset redemption and redemption operations at corresponding user agents based on their preferences.
The steps are shown below:
(Picture from HBTC white paper)
When the user agent needs to exchange HBTC back to TTC, he only needs to transfer the HBTC assets to the system's HBTC address, and the HBTC's depository system will immediately find the HBTC transfer, and automatically complete the destruction and transfer of these HBTC. To the equivalent amount of the bitcoin asset to the bitcoin address corresponding to the user agent.
(Picture from HBTC white paper)
Although such schemes require users to trust the custodian, they can reduce the transaction confirmation time of Bitcoin from 1 hour (6 confirmations) to less than 5 minutes, and can also greatly reduce transaction fees, which requires timeliness. Large or small transactions are more advantageous.
The Prospects and Challenges of Bitcoin Anchor Coin
After roughly understanding the principles and characteristics of HBTC, we may ask, what is its future?
According to statistics from dapptotal, the total value of the current lock-in of the DeFi ecosystem is about 1.68 billion US dollars, of which the Ethereum asset class accounts for the vast majority, and the three Bitcoin-related DeFi projects of Lightning Network, WBTC and imBTC are locked assets The total accounted for only about 20 million US dollars. It can be seen that in the DeFi world, BTC's participation is still very small.
With the obvious ceiling of Ethereum assets, the introduction of more Bitcoin anchor coins can effectively push the DeFi market to a new height.
According to HBTC, through the standard ERC20 smart contract, users can use HBTC to participate in the trading strategy / derivatives / insurance / prediction market on the chain, as well as participate in a variety of decentralized and centralized financial services. -Zhonghuahua, Zhonghuahua-Dezhonghuahua BTC market provides faster liquidity and lower renewal fees.
It is foreseeable that there will be more exchanges launching their own Bitcoin anchor coins in the future, and this will also trigger more competition and discussion. For example, launching anchor coins on different chains will also Facing different levels of security issues, this is also something that users and project parties need to consider and resolve.