Unveiling ACoconut, the chassis behind #acBTC, #BTC +, $AC and a vision to realize frictionless liquidity in a decentralized economy!

With the redefined vision, we are extremely thrilled to introduce BTC+ to the ACoconut protocol suite.

A thread

1/ The movement of liquidity between decentralized systems is currently entrenched with user frictions, largely impacting capital efficiency and usability.

2/ BTC-pegged tokens aim to maintain a stable peg against native BTC, token holders must seek for yields across various applications while bearing exorbitant transaction fees associated with allocation adjustments.

3/ BTC LP tokens, which includes vault share tokens from yEarn/Pickle/Harvest, generate profits and socialize costs for their holders.

However, these BTC LP tokens lose their peg against BTC and thus limits their usage in certain applications such as staking.

4/ That's why we designed BTC+: With recurring positive rebase based on accrued interest, BTC+ can achieve the best of both worlds.

It's the first ERC20 BTC that can both maintain peg to native BTC and generate yield automatically for their holders.

5/ BTC+ can be minted with both BTC-pegged tokens and BTC LP tokens. Addition and removal of supported tokens will be driven and decided by the ACoconut community.

6/ The following tokens are supported in the launch of BTC+:

BTC-pegged tokens: #WBTC, #renBTC, #tBTC, #oBTC
BTC LP tokens: #renCrv, #hbtcCrv, #obtcCrv

@WrappedBTC @renprotocol @HBTC_Official @BoringDAO_Defi @keep_project @CurveFinance

7/ BTC+ Pool accepts deposits of ERC20-related tokens, generates yield with the deposits and mints BTC+ based on the total number of BTC-pegged token available in the pool

All BTC-pegged tokens are converted into BTC LP tokens, and BTC+ is minted

8/ This means 1 BTC+ can always redeem to a combination of multiple BTC-pegged tokens whose total amount is 1. Therefore, BTC+ maintains its peg to native BTC price.

9/ BTC+ Pool rely on another ACoconut product, #acSavings, to generate yield for its underlying assets. acSavings is a suite of vaults that helps BTC+, along with other acSavings users, to seek yield based on opportunities on the market.

10/ The returns from acSavings are used to mint additional BTC+ which are distributed to all token holders as interest. The interest collection process can be triggered automatically when BTC+ is minted or redeemed, or manually by any user of the protocol.

11/ BTC+ distributes interest using rebase mechanism. It manages a variable named index which represents the ratio between the underlying shares and the actual balance amount.

12/ The index is ever-increasing and increases each time interest is collected. Therefore, holders of #BTC + can see their balance increased over time while the price of #BTC + remains peg. This is a fundamental difference between #BTC + and BTC LP tokens.

13/ Since users’ balance of #BTC + keeps increasing over time, DeFi developers should handle the balance properly when integrate their protocol with BTC+. Fortunately, this is not a problem for most existing DeFi protocols.

14/ DEX Protocols

Liquidity provider can earn both transaction fees from DEX and interest from #BTC + by supplying #BTC + liquidity.

@Uniswap @BreederDodo @SushiSwap

15/ Lending Protocols

BTC+ can server as collateral in lending protocols. Users can continue to earn BTC+ interest while using it as collateral.

@compoundfinance @AaveAave @CreamdotFinance

16/ Options Protocols

BTC+ is also a good choice for options since it’s pegged to BTC, and options users won’t lose their BTC+ interest even in the options market.

@HegicOptions @fin_nexus @opyn_

17/ Currently, the ACoconut protocol suite have two ERC20 BTC protocols: #acBTC and #BTC +

While acBTC focuses on reliability and usability, BTC+ focuses on capital efficiency and protocol compatibility.

18/ Together, #acBTC and #BTC + are complementary decentralized solutions, designed to provide BTC DeFi users the ultimate frictionless experience.

Full read: https://medium.com/nuts-foundation/introducing-btc-a-positively-rebasing-erc20-btc-9e3b3833daf4