BoringDAO partners with EasyFi to bring non-Eth Liquidity to Layer 2 DeFi

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EasyFi Network

5 min readJan 22, 2021

EasyFi to list Bitcoin (oBTC) & Litecoin (oLTC) as collaterals

We are thrilled to announce that BoringDAO and EasyFi Network are entering into a strategic collaboration to enable non-ERC20 digital asset markets i.e. Bitcoin & Litecoin on layer 2 DeFi.

The addition of oBTC ( wrapped Bitcoin) and oLTC (wrapped Litecoin) to our lending markets would make EasyFi Network, the first lending protocol on Matic Network and on any Layer 2 network to list Non-ERC20 assets as collaterals.

While BoringDAO is a gateway between blockchains and allows the movement of assets between non-ERC20 token chains and Etheruem in a very secure and decentralized manner, EasyFi has created the world’s first secure, decentralized and faster DeFi lending protocol on a Layer 2 solution powered by Matic Network.

This partnership resonates well with our #DoMoreWithDeFi vision of maximizing the utility for cryptos and other digital assets. We are confident that our collaboration will open up new avenues for both our communities and users to explore faster networks to realize the best yields on their digital assets seamlessly.

Areas of Partnership

EasyFi and BoringDAO are working closely on the following areas of collaboration:

A. Non-ERC 20 asset markets

BoringDAO’s Non-ERC20 converted tokens — oBTC (BoringDAO Bitcoin) & oLTC (BoringDAO Litecoin) — will now be listed as exclusive lending markets on EasyFi platform on both Matic and Ethereum chains. Here are a few reasons why we chose oBTC and oLTC:

In the past 6 months, the demand for Bitcoin pegged tokens on Ethereum has increased substantially — almost 50 times in fact.
The TVL of Bitcoin pegged tokens on the Ethereum network is now more than $ 4.5 Bn with WBTC accounting for 80% of it.
Bitcoin market cap is 2/3rd of the entire crypto market cap; the inclusion of bitcoin pegged tokens will bring greater liquidity to the DeFi ecosystem and raise its asset ceiling.
Bitcoin pegged ERC20 assets have earned the BTC holders up to 30% APY through liquidity mining.
oBTC, a BTC anchored token from BoringDAO, has seen a growth of almost 100x in the past 2 months since its launch.

This is only the bitcoin story; the other coins such as LTC have not been explored yet. In fact assets like Litecoin have not been represented at all in the DeFi space, except the Litecoin Foundation — Cred partnership to provide financial services to Litecoin investors.

Both the teams are aware of this lacuna and are confident that Litecoin pegged ERC20 tokens will be a much-needed addition as collateral.

B. Community Incentivization

In continuation to our ongoing community incentivization programs, we will also start a new exclusive Dual Farming program with BoringDAO where users who stake their EASY can farm BOR tokens. The specifics of this DF program will be announced shortly.

We will continue to explore more ways to further our joint #DoMoreWithDeFi vision.

BoringDAO & EasyFi

Here are a few reasons why Boring and EasyFi have come together

BoringDAO brings to the table two specific leveraged and backed ERC20 tokens — oBTC (BoringDAO Bitcoin) and oLTC (BoringDAO Litecoin)
Their “tunnels” allow non-ERC20 tokens to be wrapped into an Eth ecosystem thus providing access to DeFi.
The “tunnels” mode also creates a DAO for each blockchain asset to mint and redeem between blockchains and ERC20, thus allowing any community user to create their own tunnels by staking.
EasyFi on Layer 2 is best suited to leverage these tokens as collaterals, considering the high gas fees on the main Eth network.
EasyFi provides a fresh new approach with intuitive UI/UX for new volatile markets and the only liquidation module on L2 or on any other DeFi network.
EasyFi provides unique models for the community and institutions to leverage on their investments and find more ways to maximize yield, get more collateral options, and more avenues to deploy capital

All of these and more make BoringDAO and EasyFi a potent combination in the L2 DeFi space.

The need for new collateral markets on L2 DeFi

EasyFi has always believed that an expanding digital assets credit market will always need new forms of collaterals. It is imperative that we keep introducing new and innovative collateral markets and here are some of the reasons:

New collateral markets will create a more efficient DeFi lending system that allows users to derive better leverage from a diversified portfolio.
It will enable investors to distribute their risk portfolio over a larger spread and create better yield curves from their investments.
With just $20 Bn locked in various instruments (as per defipulse.com) in a $800+ Bn crypto market, the potential is phenomenal, to say the least.
While ETH (ERC20) and BTC (Non-ERC20) are still the more trustworthy collaterals in the digital assets space, there are many more that are waiting to be explored and leveraged on the expanding DeFi space — especially on a faster, cheaper, and efficient L2 lending protocol.
In order to create efficient DeFi lending markets, we have to leverage the immense size of the non-ERC20 digital assets market.
New and efficient cross-chain bridges have now opened up the converted non-ERC20 asset space, making it easier to integrate these new tokens into DeFi lending.

A little bit about BOR token

BOR is the native token for the BoringDAO ecosystem and has both utility and governance features. It can be obtained through mint mining and farming. The use cases are pledging into tunnels, paying burn fees, and governance.

Token Name: $BOR | Token Max Supply: 200,000 | 18 Decimals

About BoringDAO

BoringDAO is a decentralized asset bridge project, runs as a DAO. It uses a ‘Tunnel mechanism’ and triple pledging to let BTC, LTC, and other blockchain assets seamlessly engage with Ethereum and other blockchain networks.

To learn more about $EASY and EasyFi, please go through our whitepaper and other articles on this publication.

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