How to Use BTC Proxy for DeFi?

Maskal B.
Maskal B.
Mar 15 · 3 min read

Hello, BTCpx community,

There have been a lot of queries about what is the use case of BTCpx. In this article, we will explain to you what we are trying to create & how BTCpx adds value to the crypto ecosystem. By combining the ubiquity & maturity of BTC, the functionality of ETH & scalability of the Matic (now Polygon) Network. BTCpx unlocks a world of possibilities that allow your Bitcoin to work like never before in the world of DeFi. BTCpx is a tokenized form of BTC minted in a 1:1 ratio. This enables bitcoin holders to use it in DeFi dApps. BTC Proxy is a slick second-generation Layer-2 solution with insured and segregated custody with a permissionless interface that allows one to interchange between BTC and ETH without counterparty risk and price slippage.

What can you do with BTCpx?

  • Can be used as collateral for securing crypto-backed loans
  • Can be used to earn interest in decentralized lending pools
  • Can be used to earn liquidity mining/yield farming revenues
  • Can be used to margin trade on decentralized derivative exchanges

Ethereum-friendly bitcoin HODlers can use BTCpx as collateral to take out crypto-backed loans for their use in business or to deploy leveraged crypto investment strategies, such as engaging in yield farming.

Alternatively, BTCpx holders can deposit their funds in a decentralized lending protocol such as a liquidity pool supplier to earn interest.

Users who have more appetite for risk can deposit BTCpx in liquidity pools to earn fees and liquidity mining rewards (protocol token rewards). DEX platforms such as Uniswap will have pools for BTCpx where users can engage in liquidity mining. Yield farming is much riskier than simply lending tokens so the expected APY’s are much greater.

Great minds such as Albert Einstein consider compound interest as the eighth wonders of the world. “He who understands it earns it, he who doesn’t pay it”. Most banks will pay you approximately 0.01% APR (annual percentage rate) on savings deposits, while yield farming can give you up to 1% APR depending on market forces such as demand, supply & risks.

BTCpx after launch will be deployed in Uniswap immediately. Users can add liquidity to the pools of their choice with BTCpx and Uniswap will reward them with LP tokens as an incentive for providing liquidity in their platform. Users can additionally use BTCpx and stake them in our staking contract to earn governance token PRXY.

Seasoned traders can also use BTCpx to margin trade on DEX’s (Decentralized Exchanges) once listed. Instead of depositing bitcoin on CEX’s (Centralized Exchanges) traders can deploy BTCpx on non-custodial, smart contract-driven dApps taking the benefit of enhanced fund security while trading.

Tokenized bitcoin BTCpx will enable the users to use the value of bitcoin over the ERC20 network safely and securely. DeFi is the future of finance, currently, the ethereum network is congested by the mass volume of transactions by DeFi dApps. BTCpx will enable the ecosystem with scalability & speed.

BTC Proxy

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