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NEW YORK, November 12, 2020 / PRNewswire / – xBTC has integrated Chainlink with xBTC live on the mainnet to launch a new type of product that uses Chainlink oracles to dictate the economy of a token. This first-of-its-kind integration creates a spot price for a new data point that has never had a spot price: Bitcoin Market Cap Dominance (BMCD). Having an accurate, constantly updated and manipulation-resistant spot price allows for the use of BMCD in trading, liquidity pools, option contracts and other financial instruments.
xBTC
This integration is the most direct connection that can exist between an oracle and an ERC-20, as Chainlink’s price oracle determines the fluctuating supply of the token. xBTC brings together two new technologies: relining and oracles. Once Chainlink feeds the current BMCD to the xBTC smart contract, it affects the economy of the xBTC token once a day through a rebase, a change in the supply of a token. There are two types of rebase:
- Positive Rebase: If the xBTC spot price is higher than BMCD, more supply is added to the market to push the price down to BMCD.
- Negative Rebase: If the xBTC spot price is lower than BMCD, the offer is taken from the market to push the price up to BMCD.
Through rebasing, an oracle is directly connected to the economy and the spot price of a token in the most simplified way possible.
So what is xBTC and how does it work?
xBTC can be seen as a synthetic hedge of the domain against Bitcoin. As the BMCD declines, positive declines tend to occur in greater quantity and frequency. It can also be seen as a synthetic index fund on the dominance of every single altcoin on earth: as their dominance exceeds that of Bitcoin, positive declines are more likely. This type of index creates an on-chain, decentralized and autonomous prediction market where traders can predict where BMCD will go and place a bet for or against every single altcoin that outperforms Bitcoin.
This review of synthetics and forecasting markets is the first of its kind. It does not require any third party wall, walled garden, KYC or any other prohibitive wall. It is also less complicated than traditional derivatives where there are many complicating factors such as expiration dates, margin trading, proprietary and complicated user interfaces, strike prices, and more. xBTC creates a synthetic derivative that is instantly and easily accessible anywhere; it’s all wrapped up in a simple ERC-20 token. It is deeply aligned with the ethics of what digital assets should be: decentralized and innovative.
Use of Chainlink Price Oracles to protect xBTC assets
Our vision for xBTC is that it is used by large institutions and individuals alike. Therefore, for xBTC to function efficiently, it must have a reliable and accurate oracle to ensure the integrity, effectiveness and reliability of the data that ensures its value.
Chainlink has a solid track record of providing price feeds that secure billions of dollars of value for many of the major decentralized applications that depend on oracles. One of the main factors is the strong set of features it provides to developers, such as:
- High-Quality Data: xBTC smart contracts can use Chainlink to access premium off-chain APIs that aggregate BMCD data from multiple sources to generate the most accurate spot prices for rebases.
- Secure Network Infrastructure: Chainlink uses a decentralized network of independent Sybil-resistant nodes to supply and deliver BCMD data in order to maintain highly available and tamper-resistant Oracle services.
- Transparent Process: Chainlink’s price feeds are highly transparent where users can monitor the performance of oracles to ensure rebases are fair and accurate.
Chainlink is constantly looking for ways to push what oracles can do and innovate in the blockchain space, and we’re excited to work with them to reinvent how oracles and tokens can be directly connected to produce new streams of value in DeFi. Being able to influence a token’s economy directly using an oracle for rebasing opens up a whole new space of tokenomics in the digital asset space. We see this as just the beginning of these types of integrations that reimagine how we integrate oracles into tokens.
“It is exciting to see innovation in digital assets, as we are a passionate team driven to bring a new use case to the DeFi market that reinvents what can be done on-chain and pushes our space forward,” he said. Mark Sgambelluri CEO and co-founder of xBTC. “This Chainlink integration allows us to create a new asset class that combines decentralized oracles and symbolic economy directly with each other, providing new value to DeFi users and financial institutions. Data-linked rebasing of oracles has a bright future as a standard way. to develop digital assets and Chainlink and xBTC are leading the way “.
About xBTC
xBTC focuses on creating innovative digital assets that are easily accessible to all. xBTC allows Bitcoin Dominance trading on the open market. This creates a new synthetic derivative that has never existed before, giving a spot price to a new data point that was previously not tradable in the market. It is a fully open market and decentralized monitoring of Bitcoin Market Cap Dominance. This synthetic derivative also introduces a new synthetic “Dominance Hedge” concept. A dominance hedge is more adaptable and responsive than a simple price hedge, instead of tracking the price, it tracks how much Bitcoin keeps up with the dizzying pace of all other blockchain technologies. xBTC will have an entire ecosystem built around it starting with its dashboard and mint which have already been launched. With Mint, liquidity providers can be rewarded for their long-term participation. Find out more at xbtc.fi
About Chainlink
Chainlink is the most used and safest way to power universal smart contracts. With Chainlink, developers can connect any blockchain with high quality data sources from other blockchains and real world data. Run by a global, decentralized community of hundreds of thousands of people, Chainlink is introducing a fairer model for contracts. Its network currently insures billions of dollars worth of smart contracts across decentralized finance (DeFi), insurance and gaming ecosystems, among others. Chainlink is trusted to provide the ultimate truth by hundreds of organizations for providing continuous and reliable data feeds. To learn more, visit https://www.chain.link and follow @chainlink on Twitter.
Media contact:
Chloe D’Agostini (Ojamu) – [email protected]
Related images
xbtc-diagram.png
XBTC diagram
SOURCE xBTC
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