We joined an AMA with tehMoonwalkeR to discuss the mechanisms, innovations and upcoming plans for DeCus and eBTC on 9th April. In this AMA Recap we will try to summarize some of the most interesting points for you.
Blaze | tehMoonwalkeR: Welcome Blake and Sunny. Stoked to have you top gents in here today. Looking forward to what you have to share with us. Please introduce yourselves, tell us about your backgrounds, your roles in DeCus and more about the team helping you build out this vision?
Blake@DeCus.io: We are part of the international marketing team of DeCus, which is made up with a group of scholars that have come up with a way to bring BTC cross-chain into the ETH space so that BTC holders can utilize the wonderful world of DeFi.
Before I talk about exactly what we do. let me share our roster of members. It’s pretty impressive. As you can see, many of our core members are PHDs from top universities and all publicly available.
Sunny0928@DeCus.io: We’ve been in the DeFi space for some time and the DeCus team is made up of many renowned scholars in Computer science, statistics, and cryptography.
Blaze | tehMoonwalkeR: So for those who don’t know, what is DeCus and what does it do?
Blake@DeCus.io: If people are familiar with renBTC or tBTC, also WBTC and HBTC, we do similar. We do cross-chain custody of BTC and create our eBTC, But, our solution uses much lower collateralization rate, and it’s fully decentralized.
For example, if you look at renBTC or tBTC, you’re talking about 150% collateralization rates, but with our eBTC, we get down to only 30–50% collateralization rate and eventually down to maybe 20%. That’s a huge game changer.
Plus, our tech is fully decentralized, so no KYC issues, or tax issues. Let me show a chart of how it works step by step.
So, someone who has BTC and they wanna get in on those juice DeFi returns can use our platform, send a BTC deposit request, then they basically can get eBTC on the other end. Then they can work on the Ethereum network where all those juicy APYs are.
Blaze | tehMoonwalkeR: Sounds great. I assume you will have to get projects to sign up to enable usage of eBTC on their platforms. Who have you got onboard currently and who is in the pipeline?
Blake@DeCus.io: Actually, we already have a solid network of BTC miners in China that are supporting this project and their network is serious. We are also looking at plugging into Curve, Compound, AAVA, etc. Plus, we have already done our seed round of funding and have many serious players backing us, including FBG Capital, SevenX Ventures, Conflux, Parallel Ventures, Conflux, dForce, DODO, Puzzle Ventures, YBB Foundation, MR.BLOCK, 7Star.Capital, Mask.io, IMO Ventures, Kernel Ventures and Hotbit.
Blaze | tehMoonwalkeR: So where are you with the project atm, is it ready to roll out?
Blake@DeCus.io: Well, we already finished our first round of testing with the keepers that went really well, and we will be doing another test in mid-April. I should also mention one thing that is very important. We are not just focusing on eBTC and Ethereum which is just the first stage. The technology and the algorithm we have will enable our system expand to other chains, like BSC, HECO, Conflux, etc.
Sunny0928@DeCus.io: And Our core code is being audited by an industry-leading company. Once completed, the audit report will be published on our website: https://decus.io/ . Don’t forget to join our telegram group as well. https://t.me/decus_official
Blaze | tehMoonwalkeR: Let’s talk about the token. Why do we need it? What can I do with it and what makes it valuable?
Sunny0928@DeCus.io: The DCS token will mainly be for governance of the platform. The total supply of DCS is 1 billion, of which 45% will be given as incentives for mint mining, liquidity mining etc.
DCS will also be airdropped to the early contributors of our system, i.e., the participants of our test, the holders of current tokenized bitcoins, and those who participate in the governance of DeFi protocols which have established collaboration with DeCus.
Blake@DeCus.io: Right, they are the backbone of the platform. The keepers, the miners and the liquidity……We are all in this thing together.
Sunny0928@DeCus.io: Liquidity mining is also in plan. The details of DCS use case are still being worked out. But, definitely we want the community to run the show at DeCus.
We want to make sure that Keepers, users and liquidity providers can all benefit from our system.
Blaze | tehMoonwalkeR: With any business, it is about making those sweet benjamins. So how does DeCus derive its revenue to sustain itself?
Sunny0928@DeCus.io: Before we talking about how to make money，there is one important thing to be clear is that the vast majority of the revenue generated by the system will be distributed to Keepers, liquidity providers and DCS token holders.
Currently, there are two main parts of revenue: Firstly, service fees. The system will charge fees in a stepwise manner for every eBTC minted and redeemed. But, at the beginning of our platform, mint fee will be exempted to attract more users. Fees for redemption is set in the range of 0.1% to 0.2%. Secondly, financial income. Keepers deposit BTC in our system, we can carry out risk-free arbitrage based on the team’s previous quantitative experience, and obtain financial management dividends proportionally.
DeCus is trying to optimize our revenue model to make the system stronger and sustainable.
Live Questions
Q1: Many projects rug pulled and exit scam recently. Why should investors trust your project not to do the same?
Blake@DeCus.io: I think this is a good question. How do people know we are here for the long term? Well, as I mentioned earlier, we already conducted our seed round from major investors and they already kicked the tires and invested. Plus, we have a huge network of BTC miners backing the project and already committed. And our core team is comprised of top scholars from top universities.
I think when people look at the core team, the solid backing by our investors in the seed round, and the math behind the project. Plus the fact that we have already finished our first keeper round earlier this month…..all signals point to MOON.
Q2: What types of rewards other than rebases, holders can expect in near future ? I can see rewards like governance , yield farming etc in white paper. Please explain more about it.
Sunny0928@DeCus.io: If you choose to become the Keeper in our system, you will receive mostly 3 parts of benefits: 1) Share of system revenue, which is generated from the fees of eBTC(or other pegged value crypto assets) minting and redemption. 2) Collateral interests, namely the deposit interests of Keeper collaterals. eBTC is the first tokenized bitcoin that gives such interests to the custody party of underlying assets. 3) Farming yields, which will be generated by integrating crypto collaterals into yield farming protocols such as Curve, Compound and AAVE etc. Whether authorize the system to farm is determined by Keeper itself.
Blake@DeCus.io: Yes, if people out there are interested in becoming Keepers. Please join our group to find out more info as the next round of testing will be coming very soon. Keepers stand to earn a lot.
Sunny0928@DeCus.io: And as mentioned, liquidity mining is in plan. We are discussing the liquidity mining model without impermanent loss and double-token mining as well.
Q3: Could you give me 2 or 3 key points to convince me and other angel investors invest in project for the long-term?
Blake@DeCus.io: I think we can look to other similar projects like renBTC, tBTC, WBTC, HBTC and we can see how well they have performed in the market, but eBTC from DeCus outperforms them all with more decentralization and lower collateralization rates.
So, for sure, if THOSE projects are doing well, just imagine how much of an advantage eBTC will have.
Sunny0928@DeCus.io: 3 main points: Market demand, Leading algorithmic model and excellent team.
What is DeCus?
DeCus is a high capital efficiency cross-chain custody system based on innovative algorithms. We offer market a trustworthy infrastructure to make token flow across different blockchains and a safe way to leverage the utilization rate of crypto assets.
What is eBTC?
eBTC is an ERC20 token backed 1:1 with real BTC. As the first usecase of DeCus, eBTC provides a better solution for tokenized bitcoin with improved efficiency and decreased risk in a truly decentralized way.
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