Boring DAO V3's 4 major features revealed, the decentralized BTC cross-chain era is coming

BoringDAO is a third-generation universal cross-chain protocol and a decentralized asset bridge that connects all blockchains. Through BoringDAO, users can not only realize the safe cross-chain of assets such as BTC, LTC, Doge to Ethereum or BSC, but also realize the multi-to-many "overpass" type cross-chain between public chains. It is the basic middleware for the main applications of the future Web3.0 ecosystem, including cross-chain DeFi, and truly realizes the liquidity of various on-chain assets and realizes multi-chain interoperability.

During the live broadcast, BoringDAO Core Enki explained in detail the new features of version V3, as well as his plans and ideas for BoringDAO to open up the liquidity of various on-chain assets and achieve multi-chain interoperability.

Other guests participating in the conference included Vinvent, the founding member of the Boredom Community, Steve Guo, CTO of Loopring Protocol, Awen, Lead AG of Sushiswap Asia, Lead of NEAR Growth, Daidai, Cofounder of DODO, Cao Yin, Managing Director of Digital Renaissance Fund, Ding Yuan, Founding Partner of Nothing Research, Xiao Xiao, Investment Manager of HashKey Capital, Fan Xuxin, Investment Manager of Fundamental Labs, Pingfeng, Founder of DeFi, etc. They discussed Web3.0, Layer2, and DeFi technology and investment-related issues through two roundtables.

If you think that decentralized cross-chain assets are a trend, then this conference will definitely inspire you to understand the future. We have sorted out the highlights as follows. You can also watch the live broadcast replay directly: https://www.chainnode.com/live/52db5c68

Boring DAO Core Enki: Four major functions of V3, which may rewrite Bitcoin DeFi

Since its official launch in November 2020, BoringDAO has generated millions of US dollars in revenue, with a TVL of more than 100 million US dollars. The cumulative minting volume of oBTC has exceeded 5,000, the cumulative minting volume of oLTC has exceeded 50,000, and the cumulative minting volume of oDOGE has exceeded 2.5 million.

Next, Boring DAO will upgrade from V2 to V3, which mainly includes 4 products and 1 feature. Today we will reveal them one by one.

The first one is Shadow Bitcoin, which is our most important product. There is no similar solution in the industry. It is a completely non-custodial asset anchoring solution. In the past, when minting assets across chains, everyone was worried about the security of native assets. Shadow Bitcoin solves this problem. Taking Bitcoin as an example, it allows users to host their own Bitcoin in their own Bitcoin wallets and issue shadow assets on smart contract chains, such as the Ethereum network. During the redemption process, users must destroy an equal amount of corresponding shadow Bitcoin on Ethereum to unlock the native Bitcoin in the wallet.

It is actually a scheme to mint shadow assets by locking the permission to move native assets, which makes it impossible for anyone to move native assets without your signature permission. It is a completely decentralized, secure and convenient solution.

Currently, asset cross-chain solutions are basically mortgages. The casting process of Boring DAO shadow assets has completely changed the solutions that have been used in the industry for a long time. We initially estimate that this function will be available to everyone in early June.

The second product is oPortal, a multi-chain asset bridge, which we call Anywhere Gate. This is a product that upgrades the level of cross-chain technology to multi-chain asset bridge technology.

Currently, cross-chain transactions between Ethereum and BSC are possible. V3 will allow more ERC20 tokens to quickly and freely shuttle between chains supported by Boring DAO. Based on this, we can build a multi-chain Curve where users can exchange assets with the best liquidity in the entire blockchain world, such as exchanging DAI on Ethereum for BUSD on the BSC chain.

In the V3 phase, we will support more chains, which will cause Boring DAO to generate more cross-chain fees, and our economic model will be healthier.

The third product is NFT Bridge, a cross-chain solution for NFT. It allows your NFT to be freely transferred between different blockchains. When you sell and transfer on platforms such as Opensea, it will ensure that your NFT ID is the same on both chains. It can greatly increase the liquidity of NFT.

The fourth product is Layer2 Bridge, which connects L2 and eliminates isolated islands. It is actually set up to achieve cross-chain between two Roll UPs in seconds. It will be implemented in the form of a market maker to obtain the best compatibility. It will first support mainstream assets such as ETH and DAI, and will support more in the future.

Each of the products I mentioned above has the feature of making Boring DAO’s cash flow healthier.

Currently, shadow assets, multi-chain asset bridges, and NFT Bridge have entered the testing phase, and we can expect them to be launched on the mainnet in May and June.

In addition, multi-chain support is also being promoted. In the next quarter, Boring DAO will gradually support more than 10 public chains.

Layer2 Bridge is expected to be tested in the third quarter of 2021 and launched on the mainnet in the fourth quarter.

In addition to Enki’s sharing, we have selected some highlights from the two roundtable forums as follows:

Question: Do you agree that we are about to usher in a multi-chain future? In such a world, what do you think the positioning of asset bridge projects such as Boring DAO should be?

Steve Guo, CTO of Loopring Protocol:

I think this will happen for at least two years. And there will definitely be public chains for specific application scenarios. In fact, we have already seen it, such as Flow for NFT. I think it is impossible for one chain to solve all problems.

I think it is a huge demand to introduce BTC into the Ethereum ecosystem on a large scale. At present, at least hundreds of thousands of BTC have been introduced to Ethereum. In addition, if Boring DAO can make funds transfer seamlessly, cheaply and quickly between multiple chains or even multiple Layer 2s, it can accomplish this mission well, and its potential is great enough.

NEAR Growth Lead Awen:

Let's change the topic. For Android and Apple systems, as underlying technologies, everyone really doesn't want to miss anything and wants to do everything well.

(Public chain project parties) will indeed make trade-offs in the development process. Such trade-offs are made through gradual exploration in the race. Which point to give up and when to give up, I think it is difficult to decide in the current chaotic market environment.

I think an asset bridge like Boring DAO is valuable no matter what the market conditions are. When you bring coins such as BTC and LTC to different public chains, it can generate more economic value.

Even if there are only two major markets (public chains) in the future, like Android and Apple, if there is an asset bridge to connect the assets between these two systems, I think it is very valuable. Connecting assets is valuable in any case.

DODO Cofounder:

Different chains have different application scenarios, which can be logically explained, but in fact, from the development level, everyone will make their own technology stack more flexible and universal to support a variety of scenarios. From a market perspective, real applications grow on their own, rather than being conceived and then promoted, and then having a particularly large response. Some things that are truly accepted by users are often not thought of by designers.

For example, the iteration of public chains, it started with ICO, then turned into a bubble, finance grew on its own, and then everyone gave it a word: DeFi. Ethereum encountered a performance bottleneck, and other public chains continued to reposition themselves. In fact, the positioning of Ethereum has also been changing, from the world computer to the financial settlement layer, and now it is telling the story of BTC value storage. Things are constantly evolving, and everyone should first think about survival.

I think it's hard to predict, you have to keep an open mind and look at each chain.

Sushiswap Asia Lead AG:

Let me talk about the issue of multi-chain deployment. After a project has deployed multiple chains, a big problem is development. Now many public chains do not have enough assets, ecosystems, developers, and users. If you wait for these public chains and side chains to grow on their own, it will take a long time. If there is a cross-chain bridge like Boring DAO, some mainstream and popular assets can be directly transferred to various chains, which will accelerate the maturity of the ecosystem on each chain. The development of BSC is the reverse development of Binance.

Vinvent, a founding member of the Boredom Commune community:

Boring DAO's V3, its multi-chain asset bridge, actually aims to make assets flow between chains without moving, so that everyone can prosper and develop, and give users more choices. They can go to the place with better DAPPs and better mining opportunities. I believe this is the vision of BoringDAO.

Question: What innovative ways are there in the industry to bring Bitcoin into DeFi? Are there any projects with core advantages that deserve our attention?

Xiao Xiao, Investment Manager of HashKey Capital:

First, it must be the point of decentralization. At present, the most widely used cross-chain BTC is wBTC, accounting for 70%-80%. However, this centralized model will definitely have great risks in the long run, and DeFi advocates a decentralized gameplay.

Second, the interactivity of cross-chain assets. I mean the ability to call assets on another chain directly through smart contracts on one chain, for example, using oBTC on Ethereum to directly swap to CAKE tokens on BSC.

Both of these points are reflected in BoringDAO V3.

Question: Is decentralization important in the cross-chain asset race? What do you think?

Nothing Research Founding Partner Ding Yuan:

There are only hundreds of thousands of bitcoins in the DeFi world, and the number is stagnant. Why? Because no one wants to move their BTC. The direct reason is that all the cross-chain solutions are not good enough and not safe enough, which makes the holders who actually hold bitcoins feel uneasy.

Secondly, the cross-chain efficiency is too low, because the cross-chain methods are all physical cross-chain, which essentially means transferring your Bitcoin to another address and then generating mapping coins on the corresponding chain. The Bitcoin mainnet needs time to confirm, and it also depends on the performance of the incoming chain. Once one chain is congested, the cross-chain efficiency will be relatively low.

Then there is friction, which includes on-chain transfers, especially multi-chain transfers, etc. In addition, friction occurs once you change the scene and then change a chain.

Boring DAO V3 version of Shadow BTC may be a better solution, which is different from all other solutions. Its cost in terms of physical friction may be close to 0, and the efficiency of multi-chain is relatively high. Moreover, its decentralized model can certainly solve the problem of distrust among coin holders.

Question: Predict the development direction of the Bitcoin def field this year.

Fundamental Labs Investment Manager Fan Xuxin:

Is asset decentralization important? This may depend on the stage. In the early days, there was a strong demand for transferring Bitcoin to Ethereum, which made centralized methods such as wBTC a better choice at the time. However, this industry is designed to eliminate centralization, and centralization always has a single point of failure risk. I think the current stage may really be the stage where decentralized solutions can gain an advantage and gradually replace centralized solutions.

I think the trend of BTC migrating to DeFi protocols will not stop, and may even accelerate. If the Boring DAO solution works and the actual test results are good, it will open another prelude. There will be more and more decentralized BTC.

Cao Yin, Managing Director of Digital Renaissance Fund:

Now many large institutions have begun to hold BTC, and it has also become a standard for the world's top high-net-worth individuals. This trend will become more and more obvious.

How do you get individuals and institutions to take out the BTC in their hands and send it to the DeFi protocol for arbitrage, and provide financial services such as lending.

It is important to provide these people with a convenient one-stop DeFi service. For example, UPS can promise its users a 10% annualized return, but it can obtain a risk-free return of 5 points over 10% through capital operations in the DeFi field.

Therefore, in order to unlock the potential of Bitcoin now, we need to tap the Bitcoin potential of some high-net-worth individuals and users of UPS and Morgan.