ACoconut x The Wolf Pack <> AMA Round 2 recap
Thanks to our early supporter Wolf and the Wolf Pack, we conducted a Round 2 AMA session with their community to talk about our upcoming roadmap, new branding and most importantly, the launch of BTC+. Here’s the full recap, enjoy!
Also, for those who missed Round 1, you can relive the moment here.
The first time we talked, $AC was extremely young. There’s been a huge overhaul with the dApp, protocol, and especially price! To get things going, can you explain what $AC is all about and some of the changes that have been done over the past few months?
Last time I was here, was mainly sharing about acBTC. One of the major overhaul we did since then, was the introduction of ACoconut.
The vision for ACoconut is to enable frictionless movement of BTC liquidity. ACoconut is made up of 2 protocols: acBTC and BTC+
acBTC is a composite BTC asset made up of pegged BTC tokens such as WBTC, renBTC. The purpose of acBTC is to support a frictionless cross chain between Ethereum onto other next gen Layer 1 blockchain.
BTC+ is a synthetic BTC with a positive rebase, meaning it is made up of pegged BTC tokens AND BTC LP tokens. The purpose of BTC+ is to support a frictionless movement of BTC liquidity between DeFi procotols.
So in short, a few things have happened since the last time I came on:
1. Revealing of the ACoconut brand. acBTC is now rolled up under the ACoconut protocol suite
2. Introduction of BTC+
3. A new narrative for frictionless liquidity
4. A new dApp will be coming at the end of this month
Let me share a quick sneak peak here
So you can see, acBTC, BTC+ are all rolled up in the same dApp now. Also, you can see there’s a Layer 1 network function.
Meaning, this dApp will be deployed on other layer 1 such as BSC, Polkdadot and HECO.
Going back to the narrative, want to expand on this a little bit more. The problems we are trying to solve with ACoconut:
1. Moving BTC liquidity between layer 1 network is costly (think the fees of wrapping and unwrapping)
This picture tells the story basically. As BTC price continues to rise, the cost to move BTC between networks will also rise. In our opinion, the cost associated with moving BTC liquidity across network is only a means to an end.
In our point of view, since the user has paid for moving BTC from Bitcoin network to Ethereum already. Wouldn’t it awesome if they can move the BTC liquidity on Ethereum to other networks at no additional fees? That’s what acBTC is providing.
That’d be pretty popular right now for the sudden rise in BSC. Are you guys already on BSC?
That’s what acBTC is providing. We are deploying on BSC. And the acBTC and BTC+ protocol will be fully compatible. With any EVM compatible blockchains
“EVM” ? What is it?
Ethereum virtual machine. Basically BSC as well as many other next gen layer 1 are compatible with EVM. Meaning, builders can migrate their solutions over seamlessly.
Question by community member:
Where did the name ACoconut come from? Why do we need this? I can move liquidity around fairly cheaply and fast atm (esp on BSC)? Where can I find info on your team and roadmap?
ACoconut is a play on word from Account, which is the ideology of blockchain, to keep accounts/ledger digitally. Frictionless liquidity on 2 levels, moving between blockchains, and moving between DeFi applications.
This picture describes the friction incurred for moving liquidity between DeFi protocols. So the entire value prop. is helping to move liquidity cheaply from a network perspective, as well as from a DeFi application perspective
You can read into what we’re building here: docs.acoconut.fi.
Or join our Discord for regular discussion and updates: https://discord.gg/mvANFYe
Question by community member:
Would I always have to enter and exit with the same amount of renBTC as in the example or could I exit in multiple transactions and still have the low fees?
With acBTC, you can redeem in one specific asset. For example, if you minted acBTC with renBTC, you can redeem renBTC or WBTC at any time. And if you decide to move acBTC across to other networks, it’s moved at a 1 to 1 ratio, you don’t lose anything.
How does the frictionless liquidity work. Through rebasing mechanics right? So something similar to that of $RFI? RFI uses the ‘frictionless’ stuff for yield farming, but you’d be using it for the transfer of funds from one chain to another.
So going back to BTC+, this is where things get interesting. The main value prop. for BTC+ is:
1. Users who mint BTC+, would no longer need to scour for the highest yielding farms, because BTC+ would take care of the auto allocation and rebalancing on behalf of the user.
Meaning, users can deposit BTC LP tokens as well as BTC pegged tokens to mint BTC+. The interests that gets generated are positively rebased, and it’s used to mint more BTC+ and pay out to the user.
2. Right now, BTC holders who are depositing with let say Curve, gets CRV LP tokens in return.
With CRV LP tokens, the user is ultimately giving up usability of the asset, because he/she cannot borrow or trade against LP tokens.
But with BTC+, because we break out principle from interest, BTC+ holders not only receive interests, but they can also use BTC+ as collateral in margin trading, options trading, borrow/lend, etc. Therefore, BTC+ offers automatic yield + usability. We’re the first one to offer this.
And it just continuously compounds?
Correct. Interests gets compounded, hence the positive rebase. So it is Yield without sacrificing for usability. This pic summarizes how BTC+ works.
Will you guys provide a lending platform as well? Attached with the dapp. Or planning any partnerships with lending platforms to provide BTC+ lending utility?
With BTC+, we will be partnering with existing lending platforms first. Because they already have a usebase. Therefore, BTC+ can be easily integrated. And have usage immediately.
But as I mentioned last time I was on your channel. ACoconut will not be our only project. The development team, NUTS Finance is actually a development DAO, so we will build continously. And lending will be a standalone protocol that we plan to launch.
But it will not be tied to ACoconut. Originally, we were thinking of introducing the loan protocol under AC.
But will still work collaboratively with AC ecosystem I’m assuming?
Exactly! So on the picture, you will see acLoan which means our AC solution can be integrated with our loan protocol, as well as other loan protocols on the market! So in this sense, ACoconut only focuses on BTC asset protocols.
I know it’s a multi-layer approach, but I hope I made that clear. This is the biggest development since I was here last time, really wrapping our heads around the architecture of our solutions and story. Last time, it was only the story for acBTC.
I’d expect TVL to grow substantially then. Especially when BSC network pair launches.
Yup! Especially, because BTC+ takes in pegged tokens as well as LP tokens. You can see how much LP tokens are sitting idle on Compound, Aave, Curve (we call them base layer yield generators).
What about other networks aside from BSC and Ethereum. Planning on launching anywhere else, and if so could we have a timeframe?
So we are actually working on a Polkadot deployment. Because building on the polkadot ecosystem will not be a simple map over, so we need to go through a more rigorous process to ensure we are bringing some sort of innovation to the polkadot network.
Our approach with polkadot will be very interesting, but will share more once we get the green light. Aside from Polkadot, we are also planning to deploy on HECO.
That’s the Huobi Eco Chain. But the priority right now is BSC. Because DeFi ecosystem is scaling rapidly on BSC.
I wasn’t aware Huobi had their own chain. I’m assuming it’s something similar to BSC?
Yes, very similar. EVM compatible, and mainly to house different DeFi applications as well. I would say HECO is more focused on building out the ecosystem in China
For us, we’re neutral. Because the ACoconut solution is blockchain agnostic. We don’t have a favourite or bias. Because our mission is to enable frictionless liquidity.
So wherever the users want to move to, we’ll deploy our solutions there.
So would one be able to easily transfer to the BSC ecosystem via BTC+ / acBTC?Because right now one would have to:
>Send ETH to Binance
>Convert to BEP20
>Send to their Centralized Decentralized Exchange (CeDeFi, kek)
But once BTC+ is up and running, one could do it via the BTC+ bridge? And how does the system profit? Is there fees associated? I’m assuming so, but less than competitors?
Correct! So how BTC+ profits is through management fees. Because BTC+ has automated the deployment and rebalancing of BTC across various yield generating protocols. BTC+ will collect a fee from the returns generated.
On the acBTC side, users pay a transaction fee for swap/redeem. So relatively simple fee model. From both acBTC and BTC+.
This should explain the value capture for AC.
Have you guys tried to reach out to Yearn Team? I’ve always seen acBTC as a sort of “$YFI for $BTC” type of project, but I think BTC+ and frictionless liquidity would bring a completely unique robustness to the ecosystem. Something that other management protocols would be interested in. Especially if they can use the bridge themselves to expand their outreach.
Yes, so one costly lesson we learned from the acBTC launch was, we need to collaborate with other projects alot more. To be completely honest, we are very confident in our own products both from a design and security point of view
That’s why when we launched acBTC, we decided to take an operation route and not a partnership route. In reality, this approach wasn’t the most efficient. Therefore, with the launch of BTC+. We will be securing partnerships before we officially launch. That way, we could create a real dent with the BTC+ offering, because it is truly game-changing.
Yeah but in this game it’s all about exposure. I think what you guys have built is great and definitely deserves more recognition, but it’s hard to get recognition in the space without the proper exposure.
Totally agree. And appreciate the love since day 1.
Innovation is fairly common in a space that is all about innovation. That’s why a lot of people say Crypto Twitter / Youtube Influencers dominate the space, because of the imbalanced power they have as opposed to devs.
Yes. I can feel it. But it’s awesome because we really learned so much since the launch of acBTC. And we are so excited to be able to come up with BTC+ to further create value for BTC DeFiers.
I think BTC+ is going to bring a big splash in the space. It’s launching at the best time too because of the large influx between BSC and ETH chains.
Yes, and btw we will be doing the first crowdpooling powered by DODO on 2/24. Details to be released shortly, but just want to put this on your radar.
DODO is one of the fastest growing DEX. They were just listed on Binance yesterday. Their entire value prop is their Proactive Market Maker algo. That allows projects to start liquidity pool with much higher efficiency relative to other DEXes. We really like their tech and their team, and they’re a fan of our solutions
But basically, on DODO, projects can do crowdsale, they call it Crowdpooling. It’s capped and it will be at a discount. So it’s a great chance to get some.
Can Wolf Pack get allocation?
Everyone will be able to get, because they’ll just share the quota even when it’s over subscribed. Will share the details here once the pricing is confirmed.
Will there be a discount if you use $AC?
No discount, subscription will be done with BUSD. Because we’re the 1st project to do a crowdpooling event on BSC.
We’re up for time for today’s session. Thanks Terry for sharing with us once again. Until next time!