Why does DeCus kick off a Keeper Auction?

DeCus is a cross-chain custody system dedicated to bringing Bitcoin to the DeFi ecosystem. We offer market a trustworthy and capital efficient infrastructure to empower bitcoin holders to access the prosperous DeFi world.

DeCus is launching with eBTC, an ERC20 token backed 1:1 with real BTC. eBTC uses a system of ‘Custodian Network’ to accomplish the tokenization of bitcoin. All keepers are organized under the overlapping group assignments in a 100% decentralized way given Keepers are permission-less to join or leave the Network at will. Keepers receive a fee for every eBTC minted and redeemed.

To ensure honest behavior and avoid system security risk, Keepers need to provide crypto collaterals, and based on our original algorithm theory, the collateralization rate for Keepers can be much lower, with 30%-50% compared to the average more than 150% of other tokenized bitcoins. As the number of keepers starts to grow, the collateralization rate can go further down given it’s even difficult to collude among a large group of Keepers.

Once be selected as a Keeper, running a node is another responsibility. They need a cloud server to configure private key of Ethereum Network to verify identity and interact with smart contracts, and to initiate and verify Bitcoin multi-sig transactions.

Obviously, Keepers play an extremely vital role in system security and stabilization. Without a certain number of Keepers(preferably over 30–50 Keepers), it’s difficult for the system to operate, let alone accomplish the tokenization of bitcoin securely. So we need an efficient and fair way to initiate a bootstrap process of the Keeper Network.

Under current circumstances, Dutch Auction seems to be the best way because of two features: 1) Permission-less, which means anyone who wants to be a Keeper can participate in the auction without any qualification(as long as you have bitcoin collaterals); 2) Transparency, which means all participants can compete fairly under the set rules, and nobody would have a chance to cheat. 3) Participation discovery, which means the real willingness to become a Keeper can be figured out through the whole process.

First round of Keeper Auction is estimated to launch in mid April. Before that, we will kick off several rounds of auctions on test net to check and optimize user experience. All participants in the testing auctions are naturally the targets of the DecusDAO airdrops. For detailed information, please stay tuned.

DeCus is a cross-chain custody system dedicated to bringing Bitcoin to the DeFi ecosystem.