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Bitcoin opens a new bull market, cross-chain BTC will become an important breaking point for DeFi?



At the beginning of 2019, Dr. Xiao Feng, known as the industry trend forecaster, said in a speech: "After 2019, we will no longer discuss the technical obstacles of the blockchain." Sure enough, new advances in cross-chain technology are breaking the original "performance" bottleneck of the blockchain. At the moment, DeFi, the most valuable application and the most valuable field of the blockchain, has also encountered a "ceiling", and the progress of cross-chain technology may just be the "timely rain" for its breakthrough...

If you pay attention to financial technology, then you will know that the progress of DeFi this year is amazing. The explosion of various innovative financial applications has met many needs and created more needs, attracting countless capitals and outstanding talents. , but as the DeFi cake began to grow bigger and bigger, the growth of both admission funds and active-zce users began to slow down or even retreat.

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Judging from the market value growth of the 77 major DeFi projects tracked by Okey Cloud Chain, the growth of the DeFi market and applications is particularly obvious. In the past year, from June to September was the fastest growth in the market value of DeFi project applications. 3 months , an increase of nearly 4 times. After peaking and falling in early September, it has been hovering at a low level. It began to pick up in November, and it is still some distance from the previous high position.

Eqonex, a Nasdaq-listed company, launched a physically-settled bitcoin futures contract: According to news on February 9, Eqonex, a Nasdaq-listed digital asset financial services company, launched a new bitcoin investment product, which is a physical-settled bitcoin futures contract. , dated BTC futures contracts. In announcing the news on Wednesday, Eqonex explained that its BTC futures are denominated in USDC and rise as the price of Bitcoin against USDC rises.

According to the announcement, the Eqonex BTC futures contract expires at 08:00 UTC time on the last Friday of the expiration month, and physical settlement is automatically performed on the expiration date. Users can trade new BTC futures contracts using leverage. Eqonex also expects to launch such futures products on more cryptocurrencies, including ethereum, “in the coming months.” (Cointelegraph) [2022/2/9 9:41:12]

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If you are also a DeFi user, you will have a more intuitive feeling by observing the Gas fees required for the daily transactions of Ethereum, the main "battlefield" of DeFi. As shown in the figure above, at the end of August and early September this year, which is the peak period of DeFi application activity, the average daily gas fee was as high as 15 US dollars, which means that each transaction costs an average of 100 yuan. This is unacceptable for both DeFi players and application developers, because Gas costs are high and at the same time due to the limitations of the performance of the Ethereum public chain network, it will be very congested. In many cases, it is not possible to conduct transactions at all with a slightly lower gas fee, and even repeated transaction failures are common. So how can DeFi continue to develop in the past?

Data: The total number of Bitcoin ATM installations worldwide reached 13,742: CoinATMRadar statistics show that as of January 5, the number of Bitcoin ATMs deployed worldwide has reached 13,742. [2021/1/6 16:31:27]

Perhaps the above is also a large part of the reason why the market value of DeFi projects suddenly plummeted after peaking from a high level, because DeFi currently has a real "ceiling" for growth, but if we look at the amount of pledged funds in DeFi, you will find that the pledged The funds did not avalanche like the market value of DeFi, which means that the big funds have not left, and the prospect of DeFi is still bright. At present, DeFi seems to be near the ceiling again, so the very main problem is how to break through this "ceiling" and meet more Large amounts of money flowed into...

In fact, we mentioned earlier that Dr. Xiao Feng’s accurate prediction of the blockchain trend has gradually begun to be realized. As early as 2018, Dr. Xiao Feng said that the blockchain will achieve breakthroughs in 2019, and large-scale applications need Among the three conditions, there are blockchain interoperability, ease of use and scalability brought about by technologies such as cross-chain to promote the technical maturity of blockchain.

Argo Blockchain dug up a total of 180 bitcoins in June: Argo Blockchain PLC, a London-listed mining company, said it had repaid a debt from last year, leaving only the debt related to the recent purchase of 750 Bitmain Z11 mining machines this year.

In June, Argo mined 180 bitcoins, compared to 252 in May, and earned £1.41 million in mining revenue in June, up from £1.93 million in May. Meanwhile, the company’s monthly average mining profit margin was around 27%, compared to 34% in the previous month. According to Argo, the main reason for the decrease in the number of bitcoins mined and profits is that June is the first month after the halving, the difficulty of mining increased in the middle of the month, and adjustments to more cost-effective mining methods. The company also reported that, according to its asset management strategy, it held 118 bitcoins at the end of June, while its total mining capacity is currently based on 18,000 mining machines, a 244% increase from the end of 2019. (Proactive investors)[2020/7/7]

A simple understanding is that the new technology represented by cross-chain brings a better solution to the original public chain technology, helps break through the bottleneck, and brings a better user experience.

Wilshire Phoenix CEO: If outside markets continue to fall, Bitcoin will follow: Wilshire Phoenix CEO Bill Herrmann said that if the broader market continues to fall, the same will happen to Bitcoin. Referring to the Fed’s $168 billion injection of money into the financial sector over the past few days, Herrmann said: “The latest round of capital injections is like throwing coins at a train and expecting it to stop — there just isn’t enough money. Crazy, but I think $700 billion is needed to stabilize the market." (Cointelegraph) [2020/3/14]

At present, we see the main battlefield of DeFi: the public chain Ethereum itself is also seeking changes, but it is mainly "turning around" and it is estimated that it will take many years to complete the support for large-scale applications. At this time, DeFi can't wait that long, because it has already stepped forward, and the market needs to solve the urgent need. At the same time, the implementation of cross-chain technology solutions also requires a proven direction of sustainable development and application. At present, there is no doubt that it is DeFi. As a result, DeFi and cross-chain are in urgent need of each other. Fortunately, before this, some far-sighted development teams have already sold the road of exploration of cross-chain DeFi, and now they have begun to land...

Voice | Analyst: Bitcoin Uptrend or Pause May Fall Below $10,000: Despite altcoin prices falling day by day, BTC price managed to stay above $10,000 and even hit $10,700. However, traders warned that the uptrend could pause. Here are the price predictions from analysts at TradingView: 1. Bulls still in control, watch out for technical indicators Faibik observes: In 4 hours, BTC/USD followed a falling wedge pattern but again failed to break out. It could test the support level ($9,900) before another breakout attempt. Volume is dwindling and major indicators are turning bullish. The bears have been struggling to keep the price below $10k, but for now, the bulls look strong. 2. BillCharison said that Bitcoin will correct the downtrend due to the convergence of local reversal patterns and RSI. However, when we look at the 1H chart, we see that the price has broken the down channel and now the global vector is down. The local upward correction can now end, but slightly higher, to the $10,270-10,470 area, where the upward resistance lies. If the price tests this resistance again, the probability of a break below $10,000 increases to 87%. The target price for the decline is $9760-9640. (U.Today)[2019/9/15]

In the year when DeFi broke out, the most "explosive" thing must be YFI, which has "increased ten thousand times". Regarding YFI, the vernacular blockchain has also been mentioned many times before. It is essentially a DeFi revenue aggregator . The reason why YFI can explode so quickly is that the "aggregator" has solved many pain points of DeFi users at this time and brought innovative solutions. It has become a rigid demand and can capture the most value at the same time. A large part of the huge dividends of a wave of DeFi have been taken away by "aggregators".

YFI officially opened the aggregator track and became an "emerging concept". Many teams rushed to "replicate" the myth, but it seemed very difficult, because the solutions provided by most teams were nothing new. To really talk about innovation, it may be that the addition of cross-chain technology can solve the bottleneck of DeFi itself, bring better user experience and even higher returns, and introduce better cross-chain assets from public chains other than Ethereum DeFi is out.

You can see how popular RenBTC and WBTC used to be. How urgent the market demand for cross-chain DeFi is, but these solutions are not perfect. Of course, due to the high threshold of cross-chain technology, there are very few application solutions that have been implemented so far. , Therefore, it may be an excellent time for the "cross-chain aggregator" to show its talents. If any team can launch this type of application first, it will be easier to stand out.

At present, we can see that there are not many mature solutions. For example, the recently released cross-chain DeFi aggregation platform Farmland Protocol is relatively innovative. From its official documents, we know that it is a decentralized cross-chain DeFi The mining and transaction distribution platform solves the current difficult problems by integrating cross-chain technology, unique aggregation and distribution technology, and Dao's governance. In addition to helping asset transfers on different public chains and eliminating GAS fees, it ensures real The decentralized implementation of aggregation, mining and revenue distribution functions avoids the risk of capital pool running away.

Farmland Protocol also distinguishes mining protocols with different risk levels, and realizes the safest mining environment at present by superimposing the insurance protocol layer. In addition, users can also integrate different cross-chain protocols through farmland to achieve full openness.

As a part of financial technology, DeFi's biggest role must be to solve the financial needs of users, such as borrowing, interest generation, liquidity mining, etc. through pledged encrypted assets, which can make the encryption Assets are flowing and gaining huge profits, but the encrypted assets on the Ethereum network do not seem to have too many heavyweight assets except Ethereum itself and some mainstream Tokens as high-quality assets, while Bitcoin, as the giant of the encrypted market, " Therefore, various cross-chain solutions that map Bitcoin to the Ethereum network have emerged, and with the development of DeFi, they have entered the Ethereum network through cross-chain solutions The number of BTC has also grown rapidly.

This has to mention the cross-chain platform Farmland mentioned earlier. Compared with most mainstream BTC-anchored cross-chain implicit assets on Ethereum, such as WBTC, imBTC, and tBTC, the farmBTC introduced by it has more advantages. More decentralization, more flexibility, lower risk and other advantages. At the same time, its integrated mining insurance protocol can well prevent users from falling into the risks caused by DeFi mining and "losing everything".

In general, Farmland is a platform that integrates technologies such as cross-chain and DAO, and has added many innovations at the protocol layer. In particular, the solution proposed for cross-chain Bitcoin is more perfect, which allows users to pay very low or even 0 To participate in DeFi mining through handling fees to obtain income, and at the same time to obtain a good experience, which greatly reduces the risk and the threshold of DeFi. Bitcoin broke through 20,000 US dollars, and the overall market sentiment was mobilized. The development of the Ethereum ecosystem must be the next top priority. The demand for cross-chain aggregators will also increase. Cross-chain aggregation protocols such as Farmland will face rare opportunities.

DeFi has been evolving endlessly, and it can't stop at all. With the timely rain of cross-chain technology, coupled with the good time for Bitcoin to start a new bull market, technical teams like Farmland have provided better solutions, and through different innovative combinations, DeFi can add more Play, meet more demand to push DeFi to a broader space. What is the future of cross-chain DeFi and Bitcoin? We will wait and see.


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