$SMILE Token: Unlocking multiple opportunities in the Bitcoin ecosystem's over-collateralized stablecoin market
远山洞见2024/11/08 08:42
By:远山洞见
I. Project introduction
bitSmiley is the first native over-collateralized stablecoin protocol in the Bitcoin ecosystem. With Bitcoin as the core, bitUSD is minted as a stablecoin through over-collateralized BTC, filling the gap in stablecoin and lending infrastructure in the Bitcoin ecosystem. BitSmiley's stablecoin and DeFi ecosystem provide a secure and stable interest path for BTCfi.
The core of bitSmiley is bitUSD, which integrates with the Bitcoin mainnet and various Layer2 solutions. Through the bitRC-20 protocol compatible with BRC-20, it achieves native stablecoin minting and destruction on the Bitcoin network. bitSmiley also built a decentralized lending platform bitLending and native AMM bitCow, expanding the financial functions of BTCfi.
In the future, bitSmiley will continue to enrich its BTCfi ecosystem, promote the release of Bitcoin liquidity, and aim to become a liquidity hub on Bitcoin, providing users with more comprehensive and innovative DeFi services.
II. Project highlights
1. Innovative stablecoin protocol. bitSmiley is the first over-collateralized stablecoin protocol in the Bitcoin ecosystem. Through bitUSD stablecoin, it provides functions similar to MakerDAO for the Bitcoin ecosystem, supporting the release of liquidity for BTC.
2. Comprehensive BTCfi ecosystem. From lending to AMM to insurance and CDS derivatives, bitSmiley provides a complete range of DeFi products to meet users' diverse needs and promote the comprehensive development of BTCfi.
3. Strong investment support and early advantages. BitSmiley has received multiple rounds of support from well-known investment institutions, and has a first-mover advantage and leading position in the BTCfi track, becoming a key component of the Bitcoin ecosystem.
4. Dual LP token design. In bitCow, bitSmiley adopts a dual LP structure, allowing both Bitcoin-based and market-neutral liquidity providers to flexibly participate, significantly reducing unpredictable losses and improving capital efficiency.
III. Market value expectations
bitSmiley ($SMILE) is a protocol that focuses on over-collateralized stablecoins in the Bitcoin ecosystem, providing stablecoin and DeFi ecosystem support for BTCfi. The current circulation of $SMILE tokens is 26.796 million, with a unit price of $0.28, corresponding to a circulation market value of $7,520,000. To estimate the circulation market value of $SMILE tokens consistent with similar Bitcoin ecosystems and decentralized financial platform projects, the unit price of the tokens can be calculated as follows.
Benchmark project type and market value expectations:
Sovryn ($SOV) - A decentralized trading and lending platform based on Bitcoin
Token price: 0.399 dollars
Market capitalization: $25,437,594.687
If the circulating market value of $SMILE is the same as $SOV, the token unit price is about 0.949 dollars
Increase: + 239.6% of current price
Merlin Chain ($MERL) - Bitcoin Layer2 Project
Token price: 0.288 dollars
Market capitalization: $151,541,516.261
If the circulating market value of $SMILE is the same as $MERL, the token unit price is about 5.66 dollars
Increase: + 1921.4% of current price
IV. SMILE Token Economics
Total published: 210,000,000 pieces
Initial circulation: 26,796,000 pieces, accounting for 12.76% of the total supply
TGE price: 0.47619 dollars
Initial market capitalization: $12.76M
Total market capitalization: $100M
Token Distribution and Release Plan:
Round1 investors (10%): Initially unlock 0.20%, lock the remaining part for 180 days, and then release linearly within 12 months.
Round2 investors (6%): Initially unlock 0.30%, lock the remaining part for 150 days, and then release linearly within 12 months.
IDO (1%): Initial unlocking of 0.50%, after locking for 60 days, the remaining portion will be released at once.
Bit-Disc Airdrop (3%): Initial unlock 1.00%, remaining portion linearly released within 3 months.
bitSmiley DAO (26%): Initial unlocking of 3.16%, with the remainder released linearly over 48 months.
User Incentive (21.50%): Initial unlock 3.00%, remaining part linearly released within 48 months.
Team and consultant (12.50%): No initial release, after locking for 2 years, the remaining part will be linearly released within 48 months.
Stake (12.50%): Initial unlock of 1.80%, remaining portion linearly released within 24 months.
Liquidity (7.50%): Initial unlocking of 2.80%, remaining part linearly released within 12 months.
Specific use cases for SMILE tokens
1. Governance: SMILE holders can participate in decentralized governance, adjust key parameters of the protocol, such as collateral type, loan-to-value ratio (LTV), etc. They can also initiate emergency shutdowns when the protocol is threatened to ensure the stable operation of the protocol.
2. Fee discounts: Users can use SMILE to pay transaction fees and enjoy fee discounts, reducing overall transaction costs and enhancing SMILE usage needs.
3. Surplus auction participation: When the platform's surplus reaches the set threshold, SMILE holders can exclusively participate in the surplus auction to obtain tokens at a price lower than the market price, thus enjoying priority profit opportunities.
4. Priority liquidation right: SMILE's priority liquidation function allows a certain number of users to be included in the allowlist and enjoy the privilege of priority liquidation platform bad debts, providing additional incentives for liquidators.
5. Staking Rewards: SMILE holders can stake their tokens to the platform to obtain other assets within the ecosystem as rewards, thus attracting long-term holders and supporters.
Through various incentive and distribution mechanisms of tokens, bitSmiley's token economy model aims to promote long-term holding and community participation, achieve decentralized governance of the protocol and stable development of the ecosystem.
V. Team and financing
Team:
Team Partner and Head of Operations Cora Chen has extensive experience in the blockchain industry, having served as Head of Growth for Sei Network China and South East Asia, and Head of Polygon China, providing strong support for the project in market expansion and ecological cooperation.
Financing situation:
The first round of financing (January 2024): Led by OKX Ventures and ABCDE, with participation from multiple institutions such as CMS Holdings and Foresight Ventures.
The second round of financing (October 28, 2024): Completed $10 million financing, with investors including MH Ventures, KuCoin Ventures, Skyland Ventures and other well-known institutions.
VI. Risk Warning
1. bitSmiley is built on the Bitcoin network and the Layer2 solution, but the Bitcoin network processing speed is slow, which may cause delays in lending and clearing operations, especially when the market is volatile, which will affect the User Experience. The compatibility and security of the Layer2 solution may also bring uncertainty.
2. The bitUSD stablecoin is generated by over-collateralization of Bitcoin, and the price of Bitcoin fluctuates greatly. Once the collateral is insufficient, it may trigger liquidation, affecting the stability of bitUSD. As a new type of stablecoin, bitUSD is still in the early stage of promotion, and its liquidity may be limited, which may lead to limited trading and lending experience.
3. SMILE tokens grant holders governance rights and profit opportunities, but large holders may hold a dominant position in governance and auctions, thus affecting the fairness of the protocol. Coupled with the gradual unlocking of tokens, the increase in circulation in the later stage may bring price fluctuations, which will have a certain impact on early holders.
VII. Official link
Website :https://www.bitsmiley.io/
Twitter:https://x.com/bitsmiley_labs
Discord:https://discord.com/invite/k5HZdrM2kn
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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