RSK Project Submission
Basic Information
- Project Name:BitCollateral
- Team Name:BitCollateral DAO
- Project Category:DeFi
- Submission Date:October 22, 2024
Project Overview
BitCollateral is a decentralized lending protocol built natively on Rootstock that enables Bitcoin holders to access liquidity while maintaining their BTC exposure. The platform introduces a novel approach to Bitcoin-backed loans through smart contract automation and community governance.
Problem Statement
Bitcoin holders face a common dilemma: they want to hold their BTC long-term but also need access to liquid capital. Current solutions either require:
- Selling BTC (losing upside potential)
- Using centralized lending platforms (custodial risk)
- Complex cross-chain solutions (high fees and bridge risks)
Solution
BitCollateral solves these problems by providing:
- Non-custodial lending directly on RSK
- Smart contract-based collateral management
- Automated risk assessment and liquidation protection
- Community-governed lending parameters
Technical Architecture
Smart Contracts
// Core contracts structure
1. VaultManager.sol
- Manages BTC collateral vaults
- Handles deposits and withdrawals
- Implements safety checks
2. LendingPool.sol
- Manages lending pools
- Handles interest rates
- Processes loans and repayments
3. PriceOracle.sol
- Integrates price feeds
- Provides real-time valuations
- Triggers safety mechanisms
4. Governance.sol
- Handles protocol parameters
- Manages community voting
- Controls upgrades
Key Technical Features
-
Multi-signature Vault System
- 2/3 multisig for large withdrawals
- Time-locked operations
- Emergency pause functionality
-
Risk Management Engine
- Real-time LTV monitoring
- Dynamic collateral requirements
- Automated liquidation prevention
-
Cross-chain Bridge Integration
- Secure BTC-RSK bridge usage
- Stablecoin bridge integration
- Multi-token support
Innovation & Unique Value
-
Native Bitcoin Integration
- Direct use of Bitcoin's security model
- Lower fees through RSK
- Simplified user experience
-
Advanced Risk Management
- ML-powered risk assessment
- Dynamic interest rates
- Automated safety mechanisms
-
Community Governance
- DAO-controlled parameters
- Community-driven development
- Transparent operation
-
Market Analysis
-
Target Users:
- Long-term Bitcoin holders
- DeFi participants
- Institutional investors
-
Market Size
- Bitcoin market cap: $1T+
- DeFi lending market: $100B+
- Potential addressable market: $50B+
Development Roadmap
Phase 1: MVP (Q4 2024)
- Core smart contract development
- Basic UI implementation
- Security audit
- Testnet deployment
Phase 2: Launch (Q1 2025)
- Mainnet deployment
- Initial lending pairs
- Basic governance features
- Community building
Phase 3: Expansion (Q2 2025)
- Additional features
- Cross-chain integration
- Institutional tools
- Market expansion
Technical Requirements
-
Smart Contract Development:
- Solidity
- RSK Web3
- OpenZeppelin contracts
-
Frontend Development:
- React.js
- Web3.js
- MetaMask integration
-
Backend Services:
Team Requirements
- Solidity Developer (2)
- Frontend Developer (1)
- Backend Developer (1)
- UI/UX Designer (1)
- Product Manager (1)
Budget Estimation
Total: 350,000 USD
- Development: 200,000 USD
- Security Audits: 50,000 USD
- Marketing: 50,000 USD
- Operations: 50,000 USD
Security Considerations
-
Smart Contract Security
- Multiple audit rounds
- Bug bounty program
- Formal verification
-
Operational Security
- Multi-sig governance
- Timelocks
- Emergency procedures
-
User Security
- Non-custodial design
- Clear documentation
- Risk disclosures
Community & Marketing
-
Community Building
- Discord community
- Educational content
- Ambassador program
-
Marketing Strategy
- DeFi ecosystem partnerships
- Content marketing
- Community incentives
Success Metrics
-
Technical Metrics
- TVL (Total Value Locked)
- Number of active vaults
- Transaction volume
-
User Metrics
- Active users
- User retention
- User satisfaction
-
Financial Metrics
- Protocol revenue
- Lending volume
- Default rates
Additional Resources
- GitHub Repository (to be created)
- Technical Documentation
- User Guides
- Community Guidelines