BTC ++ A smart index tradable 24/7 on the Ethereum network.

I’m super excited about the launch of BTC ++. A smart index that we call PIEs. In this blogpost I will tell you a bit more about PIEs, the possibilities it enables and why you should care.

Pie Dao is a decentralized network of pirates, bundling their Financial IQ to create “smart indexes” that we call: Pies. PieDAO’s mission is to bring accessibility and economic empowerment to anyone with an internet connection. The DOUGH token holders are the decision makers in the DAO, Anybody can join. Yes, you too. More info on how to join.

PIEs are a special mix between a liquidity pool and a DTF cc: Alexintosh

The first smart index that PieDAO launched is BTC++, consisting of:

25% $WBTC — @WrappedBTC

25% $sBTC — @synthetix_io

25% $pBTC — @pTokens_io

25% $imBTC — @tokenlon

First things first. What are derivatives and how do they work?

Let’s start with a 101; According to Investopedia a derivative is a financial security with a value that is reliant upon or derived from, an underlying asset or group of assets — benchmark. The derivative itself is a contract between two or more parties, and the derivative derives its price from fluctuations in the underlying asset.

The most common underlying assets for derivatives are stocks, bonds, commodities etc or in this case bitcoin.

Different teams have built several interesting approaches and we bundled them together in BTC++. I will explain on a high level the inner workings of each derivative.

$WBTC

WBTC is an erc20 token which is fully backed by bitcoin. One WBTC corresponds to exactly one BTC. For every WBTC in circulation there is an equivalent amount of BTC held by a custodian (Bitgo). As WBTC is fully backed by BTC holding it gives you BTC price exposure on the Ethereum network.

$sBTC

sBTC is another erc20 representing bitcoin on Ethereum and should in theory correspond to 1 BTC. In this case the derivative is not backed by bitcoin itself, but through using SNX and ETH as (over 750%)collateral to mint sBTC.

$pBTC

The pTokens solution uses a similar peg-in/out approach to RSK, whereby users send their bitcoin to a specific address using the custom pTokens DApp or integration partners. pBTC (an ERC777-ERC20 compatible token) is pegged 1:1 with bitcoin and automatically minted and then sent to the user’s Ethereum address of choice

$imBTC

And lastly we have imBTC another erc20 Token pegged 1–1 to BTC. The holder can transfer, redeem, exchange imBTC as well as receive an income share of the Tokenlon platform fees while holding imBTC.

Besides just buying and holding BTC++ as a token, You can trade assets in the pool (Multidimensional AMM) and you get paid for providing liquidity (trade fees from AMM shared to LPs).

Another example of a smart index is USD++ , a basket of stablecoins such as

-DAI

-USDC (@circlepay)

-USDT(@Tether_to)

I see some of you finance geeks thinking again; What if you recreated a smart index consisting of a basket of the main FIAT currencies established by the IMF? Basically what LIBRA wanted to be without their bullshit narrative. An (ERC-20) SDR could be available 24/7 on the Ethereum network from anywhere in the world.

The possibilities are truly endless and… Don’t be shy, come say hi on our Discord.

Feel free to ping me on twitter anytime, DMs are open.

Or shoot us an email at founders@dexlab.io for inquiries about partnerships, or other collaborations.