01 Oct 202206:02
BTC Proxy AMA Recap
Denis (CryptoDiffer)Hello, everyone!😁
We are glad to meet here:
Donn Khello crypodiffer community im glad to be back here again
Denis (CryptoDiffer)Welcome, thank you for taking your time today!
Donn Kthank you for having me
Denis (CryptoDiffer)Our team has prepared some questions for you to start with:
Let`s start with the introduction !
Q1: Can you introduce yourself to our community?
I am Donnie Kim the founder of BTC Proxy and we are a Bitcoin to DeFi ecosystem that started in 2018
We began in the ETF and Blockchain technology crossroads and began experimenting with solutions for that segmet of finance
and in 2020 developed BTC Proxy which is a wrapped Bitcoin on Ethereum and Polygon
We are unique because we utilize a permissionless way to deposit BTC into an insured custodian to hold your bitcoin so that you can earn in defi safely
BTC Proxy is a gateway and bridge to DeFi for BTC. BTC Proxy believes it has solved a real pain point for Bitcoin holders by creating a mechanism of interoperability to access DeFi
Denis (CryptoDiffer)Q2: Can you introduce BTC Proxy to us?
Donn KI kinda of introduced myself as well as BTC Proxy in the last question but let me elaborate
So Bitcoin is looking for yield and so people have deposited it with platforms
most of these platforms are CEFI and what has happened recently is that many of these platforms became overleveraged
and we have seen a great unraveling heppen in the industry
This can be avoided if there was a solution where BTC can be held safely with little counterparty risks and especially if that party is insured
that is why BTC proxy uses insured custodians that are regulated to hold the bitcoin because it is safest method and you know they are forbidden to trade or leverage it
once that BTC is in custody we mint you a BTC Proxy on ETH or Polygon which can then be utilized in our defi ecosystem to earn further yield
when you done - you can redeem your BTCpx for your BTC
so in a nutshell we are a bridge and defi ecosystem built for BTC
Denis (CryptoDiffer)Q3: Let`s now talk about the milestones you have achieved so far and about your upcoming plans?
Donn KSo briefly to talk about what we have done
we launched in 2021 in June and we have two tokens trading
$BTCpx which is the wrapped BTC on Polygon and ETH
$PRXY is the utilty token which has a very special purpose in our ecosystem
we have onboarded 34 institutions
you can find our live products on btcproxy.io
just briefly wanted to say we have integrated and use 3 custodians
Binance Custody, Gemini Trust and Fireblocks
upcoming plans we have in the immediate future
and what we are most excited about is our Bitcoin Farming
since our ecosystem derives its fees in Bitcoin
we allow the holders of the token to earn these fees
and so they are able to stake their $PRXY token into tiers to earn that bitcoin
it is a product that is launching next month and something that you will all want be a part of
whats better than mining bitcoin without having to buy all that hardware
Denis (CryptoDiffer)Thank you for such detailed and interesting answers!
It is time to move to the community questions part.
Let's remind AMA rules to the community😊
❗️ AMA structure and rules: 👥
- Community questions part starts after the guest/guests finishes/finish answering the introduction questions asked by the moderator. Moderator unmutes the chat to allow up to 100 messages and mute it.
- Each person is allowed to write only one message containing 2 questions, violators will be disqualified from participating in the reward distribution.
- Copy-pasted questions from previous AMAs are strictly forbidden, violators will be disqualified from participating in the reward distribution.
- All questions&concerns regarding AMA members should send in dm to @cryptodiffer_admin
- Important, please don`t write to other CryptoDiffer team members, they won`t be able to help you.
- Winners are chosen by Guests.
I will open the chat at 2:18 UTC, check exact time on time.is
Chat is muted! Thank you for your questions, everyone!
DONN KIM|Founder|@donnkim,please choose the questions you like and answer them! If you wish to have additional rounds, just let me know
Donn Klots of questions
how many should we go through?
Denis (CryptoDiffer)as many as you wish
Cryptodiffer Community❇️ Would you be so kind to explain us how we can be sure that our BTCpx can always be exactly exchanged for BTC? What mechanism do you implement to protect users at this point? Is there any risk of losing this parity?
Donn KKevin, the parity of BTCpx to BTC is set in the smart contract. So even though the price in the market may fluctuate, the BTCpx can always be redeemed from the custodian 1:1. The mechanism is about protection of the Bitcoin in custody and the custodian utlizes mulitsig to protect the funds. We know that cross bridge hacks are the most vulnerable and we believe that this is the safest method to hold your btc. That is why we have onboarded 34 institutional clients
Cryptodiffer Communityhello sir Can you tell me the current price and where I can buy BTCpx and BTC Proxy Governance Tokens?
Donn KBTCpx price will hover around the same price as BTC and can be minted by depositing BTC at btcproxy.io and the governance token PRXY can be purchased at quickswap, sushiswap and on Ascendex. I will give links to these later
Cryptodiffer CommunityI understand that if we stake PRXY token we be eligible to earn some BITCOIN, however what I'm not sure of is Will the yield be the same regardless of the amount we stake or the higher we stake the better the yield?
Donn KThis is exactly right. You stake PRXY token to earn Bitcoin. the yield will be determined by the contract each block depending on the value of the PRXY token. There will be 3 different tiers and you stake your tokens to secure your tier. The more you stake the higher the return. So it is beneficial to acquire more PRXY now before the tiers are launched
Cryptodiffer CommunityI would like to earn profits with the BTC I hold, but will they really be safe on BTC Proxy? Could you explain us what are the risks? Are they the typical risks of any DeFi protocol or any additional ones? Have the smart devices been properly audited?
Donn KYour nervousness about the safety of depositing your btc is normal as there has been a huge loss of trust in some of the largest platforms in crypto. But you must understand that most of these platforms are CEFI and operate like and exchange. They are trading your Bitcoin in the background. When you deposit your BTC with us it is being sent directly to the custodian where it is insured and they are prevented from trading your coins. Your BTCpx is like a deposit receipt that enables you to get your coins back
Cryptodiffer CommunityBridge Bitcoin to DeFi with $BTCpx. Liquidity Mining with 2500% APY, Bitcoin Performance Programs and Treasury Management with Bonding through the $PRXY token. Can you explain BTCpx Bonding? What are its utilities?
Donn KWe are finishing with the liquidity mining phase of our token emissions. The apy has been drastically reduced and will become zero when the Bitcoin farm is released. Bonding is a mechanism by which you can acquire PRXY tokens from the treasury instead of buying it from the exchange. The benefit of bonding is that you are given better rates than the exchange so you may get more tokens and there is no slippage during the transaction. You are essentially trading with the treasury
The main benefit of holding PRXY is the ability to stake it to Farm Bitcoin. This is a long term strategy and the rates will be dependent on the robustness of our DeFi ecosystem. In the midterm future we plan on releasing more products such as REDUX which is an Interest Free Borrowing solution for Bitcoin Collateralization so we are growing quickly
I read that the PRXY Token is native to the Polygon network. My question is whether BTC Proxy has plans to integrate with more chains or currently you only intend to operate on the Polygon chain?
Donn KYes our plans include branching off next into the BSC ecosystem as shown in this roadmap
you will see our next step is to branch in to the Binance sytesm and pair with BUSD to lend
Cryptodiffer CommunityI read that BTCpx is an asset backed 100% by Bitcoin in custody, does that just mean that the value of your asset will always be the same as the price of BTC? Or does having this support really offer you many other benefits and guarantees?
Donn KBTCpx is 100% asset backed by Bitcoin in custody and you can see the real time amount in custody at btcproxy.io
Cryptodiffer CommunityI heard that you will be launching a campaign with RenBTC soon. Can you please share more about these campaign and why did you choose RenBTC?
Donn Kthat is correct, we will be integrating RenBTC into our protocol to accept it as a form of Bitcoin to mint BTCpx. So your RenBTC can be used to enter the defi ecosystem, we are excited about this feature as they have many holders and are looking for yield on their renbtc as well
YES it is absolutey true. BTC Proxy is the only protocol that allows you to farm bitcoin because our ecosystem earns its fees in Bitcoin we allow stakers of PRXY token to farm these. The more you stake the more you will earn and it is based on tiers
Cryptodiffer CommunityI Wants to do the MINTING , So Is there any VIDEO OR TUTORIAL Available for MINTING, If yes please tell me and What is the process of MINTING ?
Donn KYes there is a video right on the page where you are to MINT BTCpx on our site at btcproxy.io where it goes through the steps to show you how to deposit your bitcoin to mint btcpx
ill answer 2 more questions
Cryptodiffer CommunityEver since the Luna, Celsius, 3AC, etc., incident happened, most institutions in crypto have lost their reputation and users trust. Personally I'm scared of investing in DeFi considering all the recent happenings, and I'm sure most users are afraid as well. So what do you think could be done to gain back users trust? How do you convince people that have totally gave up on Defi to come an invest in your project?
Donn Kthe loss in trust happened and the industry must gain it back. But let me explain to you. Luna failed because that was an algorithmic stablecoin. BTCpx is a 100% bitcoin backed stable coin.
Celsius etc failed because they are CEFI an based their trades around human risk. DeFi operated perfectly 24/7 as you can see AAVE Compound etc are all still working just fine. So you best bet is to stick to DeFi and 100% asset backed stablecoins
Cryptodiffer CommunityOn your whitepaper i read that the max supply of $PRXY is 21M, and that will be distributed through mining in cycles. This cycles will be completed in aprox 2 years. I would like to know what plans do you guys have for when the $PRXY token is done mining, what is your next step regarding this token?
Donn KThe max supply of PRXY is 21M. There ar about 4M in circulation right now and those mining cycles are not being followed. The only way that more tokens will come into circulation will be through bonding - trading with the treasury - so the supply is very very small and the functional value of the token is very very high
I can go on answering more questions but I believe we are done with the questions today
if the community has any more questions you may find us here
pls join our community and ask any one of our ambassadors and we can help you directly
Denis (CryptoDiffer)Thanks for your time
Thank you to everyone who took part!