AMA Recap: GTA Ventures x DeCus x Kyros Ventures
On May 14th, Blake and Iris from the team of DeCus with GTA Ventures hosted an AMA live session at GTA Trading Community. DeCus is a high capital efficiency cross-chain custody system dedicated to bringing bitcoin to the DeFi ecosystem. DeCus offers a trustworthy infrastructure to make token flow across different blockchains and a safe way to leverage the utilization rate of crypto assets. We really appreciate your time and dedication to our community. This post includes a recap of the live AMA session and features the questions asked by community members, as well as the answers.
Part 1: Warm-up questions
1, Welcome Blake and Iris. First of all, can you have a brief introduction about yourself as well as your project to all of our audience in this community?
OK, sure. I’m Blake, head of International Business Development for DeCus, and Iris is head of Content Operations. We are from the marketing team of DeCus, which stands for Decentralized Custody. What we do is tokenized cross-chain BTC on ETH, basically like renBTC or tBTC except much lower collateralization rates…I’m talking super low…and more decentralization.
We are led by a team of renowned scholars in Computer science, statistics, and cryptography who have designed an algorithm that allows for much lower collateralization rates. As you can see, many of our core members are PHDs from top universities and all publicly available.
We’ve been in the crypto space for a long time.
2, How did you come up with the concept of DeCus and what problems are you solving?
2020 has been a huge year for DeFi on Ethereum Network, but Bitcoin, the biggest player, has been shut out. If you’re holding BTC, you miss out on all the juicy farming yields in ETH and on other chains. That’s where Decus comes in.
We are a bridge which can let you port your BTC into Ethereum and start farming whatever you want. We understand that there are some similar tokenized BTC out there in the market already, but many of them are centralized and pose serious risks, or have very high collateralization rates compared to DeCus.
Our tokenized bitcoin, which is called eBTC, is better in terms of low collateralization and more decentralization. So, if any of you are holding BTC and wondering when you can start using it to get in on those fat ETH DeFi returns, now you can…with eBTC.
3, Could you please provide some recent product development in terms of Roadmap?
Well, I guess one important thing to note is that our team has already secured major funding from top players. Here are some of the strong players we have backing us:
On the technical side, we completed two rounds of Keeper Auction tests and the code of this module has been optimized. We’ve also finished the development of our custody system, though it is currently in closed beta. We expect to conduct a public test on the test network next week and everyone can experience the minting and redeeming process for eBTC.
While this is going on, our marketing team is building brand awareness and is out there pounding the pavement doing lots of AMA sessions to introduce DeCus and eBTC.
Over the next few months, product development will be our top priority. We want the platform to be as secure as possible and then we will invite some white hat communities to test our vulnerabilities. Other than that, we will be building relationships with key platforms and DeFi protocols that can integrate eBTC.
The whole platform will go live in July. Please stay tuned.
Part 2: Pre-selected questions
1, There are many tokenized BTC in the market, why did you single out renBTC as benchmark for eBTC ? Can you tell us what we would gain on the long term if we choose eBTC?
Actually, eBTC is superior to all other tokenized BTC currently in the market, including renBTC.
Basically, we are decentralized, which means we are much more scalable than competitors like WBTC or HBTC; and because of the decentralization, there are less KYC, tax issues and less risk of failure or tampering.
eBTC also has much lower collateralization rates than competitors like tBTC and renBTC. For example, if you look at renBTC or tBTC, you’re talking about 150% collateralization rates, but with our eBTC, we get down to only 30–50% collateralization rate and eventually down to maybe 20%. That’s a huge game changer.
2, The stable operation of DeCus system relays on Keeper Network. If the number of Keepers is too small, the whole system will become insecure. How will you able to solve this?
The Network made up of Keepers is actually called ‘Custodian Network’, which plays a core role in our system. As you have mentioned above, we do need an efficient and fair way to initiate a bootstrap process for the Custodian Network, and that’s why we decide to launch a Dutch Auction to select the first batch of Keepers.
Ductch Auction is the best method for two reasons: First, it is permission-less, which means anyone who wants to be a Keeper can participate in the auction. Second, it is more transparent, which means it is fair to all.
Plus, we have a solid relationship with a large number of bitcoin miners in China. They are all set to participate in the Keeper auction and support us to accomplish the bootstrap of our system.
3, While looking for information about your project I saw on your Docs that DeCus is a high capital efficiency cross-chain custody system based on innovative algorithms. May I ask, what innovative algorithms are those that you used to based DeCus on and why did you decide to based it on them?
Well, it’s quite complicated when you talk about algorithms, while I’ll try to make it more understandable.
The underlying method of the DeCus system is based on an SCI paper from Dr. Guang Yang, Director of Research at Conflux. According to the overlapping grouping model proposed, the security and stability of the custodian network outperform the non-overlapping grouping model under the same circumstances, and the following example demonstrates why.
Suppose there are six custodians partitioned in two 2-of-3 multisig groups each of three custodians, and two Keepers A and C are corrupted, in the traditional non-overlapping grouping model, these 6 Keepers will be divided into two groups ABC and DEF. In group ABC, two Keepers are corrupted, which means the bad actor is able to get full control of this group, which means he can remove the BTC under custody by this group, and the loss will be half of the total BTC. But, under the overlapping grouping model, 6 Keepers are assigned to 20 groups, among which the BTC can be controlled by 4 corrupted Keepers groups, including ABC, ACD, ACE and ACF, so the affected BTC assets would only account for one-fifth of the total BTC. The same 1/3 bad actor could only have access to 4/20 or /5 of all groups and the assets under custody. In other words, the new scheme is able to securely keep 5 BTC with total collateral of 3 BTC against 1/3 adversary, since the profit that could be gained from launching an attack would not exceed the bad actor’s own collateral.
As the number of Keepers grows, the collateralization rate will continue to decrease, with capital efficiency reaching 5–15 times that of other tokenized bitcoin projects. For detailed information, please visit our website https://decus.io/ .
4, Could you walk us through the process of converting BTC to eBTC and vice versa? will fees be paid? if yes, how cheap and affordable will it be and how would the collected fees be allocated? Regarding your DCS token, what role does it play? What power within the model does it offer it holders?
As we have previously mentioned, the Keeper is responsible for the custody of native bitcoin assets, and providing collateral to secure the system and running nodes. Smart contracts deployed on the Ethereum network mint the corresponding tokenized bitcoins and those tokenized bitcoins are called eBTC. A user wishing to mint eBTC first submits a request to the smart contract and is then given a multi-sign BTC address of a designated group of keepers. Once BTC is deposited to that multisig address and proof of deposit has been provided, the corresponding amount of eBTC is then sent to the user’s ETH address. The following picture illustrates clearly the whole process.
The system charges incremental fees for every eBTC minted or redeemed. But, initially, the minting fee will be waived so we can attract more users. Redemption fees will eventually be in the range of 0.1% to 0.2%.
The DCS tokens will mainly be for governance of the platform. The total supply of DCS is 1 billion, of which 45% will be given as incentives for mint mining, liquidity mining, etc.
DCS will also be airdropped to early contributors of our system, i.e., those who participated in our test, holders of other tokenized bitcoins, and those who participate in the governance of DeFi protocols that have established collaboration with DeCus.The details of DCS use case are still being worked out. But, we definitely want the community to run the show at DeCus.
5, In the same way that DeCus provides decentralization of BTC to the Ethereum network, will it be able to provide decentralization to other chains such as BSC and Solana in the future? Or really when ETH2.0 arrives, no other chain will be needed?
Yes. The technology and the algorithm we have enables our system to expand to other chains, like BSC, HECO, Solana and Conflux, etc. Actually, we are considering launching our system on other public blockchains first and then turn to Ethereum network to provide a better user experience because current gas fees on Ethereum make it more difficult to participate in their DeFi protocols.
We see ETH2.0 as a promising solution for the network capacity issues but that seems to be a long way away. In the meantime, we will explore collaborations with other chains.
Part 3: Live Questions
1, What are the most reputable teams you have been a part of (aside from DeCus)?
We have built relationship with reputable and promising DeFi protocols like curve,dodo, etc
2, Currently, NFT is very hot, do you think you will apply NFT technology to your products in the future?
I notice the question about NFTs. I know everyone wants to ask about NFTs these days. NFTs are definitely on our horizon. Basically, DeCus means Decentralized Custody. So, the platform takes BTC but then cross-chain issue tokens on the other side of the bridge. So, that could be whatever tokens the users decides he/she wants to convert their BTC to. I’m sure many will want to convert to NFTs. So, that will definitely be an option. So, think of all the value locked in BTC coming into NFTs….all I can saw is WOW!
3, Can you list 1–3 killer features of Your Project that makes it ahead of its competitors? What is the competitive advantage your platform has that you feel most confident about?
1. More decentralized 2. Super low collateralaztion rate 3. interoperability of different public chains
4, For Every Project in Market needs Adoption and awareness ! So, Whats the Future main plans DeCus planned for the Adoption/ Awareness?
This is a good question. How will eBTC and other DeCus tokens gain adoption. One of the key ways is by partnering with key platforms. We are currently in discussions with Curve, AAVE, Balancer and a few others to have them adopt our eBTC,which is a major accomplishment
5, Tell us about your plans for 2021, what are you currently working on, and are you going to expand the list of big exchanges?
Product development is our top priority now. We want to guarantee that eBTC can be live on main net in July.