Introduction to BoringDAO

1. What is BoringDAO

BoringDAO is a decentralized bridge that connects all blockchain assets, we offer users a safe way to maximize their utilization rate of crypto assets.

2. Why we need BoringDAO

  • Decentralized Asset Custody. (Check who's protecting the key)

  • Double pledge mechanism can bring oBTC 150% Security compare to other solution.

  • more incentives for the participating user.

  • The Security level will upgrade when we onboard more Multi-Sig signers in next version.

  • Signers selected will become permissionless and automatically in 2021.

Various Ethereum DeFi applications on Ethereum aim to solve only one problem: the increase in operational efficiency of funds in the Ethereum ecosystem. Today, most of the heavily-traded DeFi assets, such as ETH, USDT, DAI, USDC, etc., are issued on Ethereum. However, in reality, Ethereum and Ethereum-based token assets only accounts for a small proportion of the total market value of all cryptocurrencies. This means that, a large number of well-received cryptocurrencies are incompatible with the current DeFi structure. For example, BTC, XRP, BCH are all left out of the “DeFi” world because they are not ERC-20 Tokens. The incompatibility makes these token-holders outsiders of the prosperous DeFi world, meaning that these non-ERC-20 token-holders cannot enjoy DeFi services, as well as the opportunities of liquidity mining and farming in DeFi. This seriously hinders the liquidity of crypto assets and causes unnecessary friction.

We are aware that some projects are already working on addressing this problem. For example, WBTC [1] and renBTC [2] can allow a small number of Wrapped BTCs to be used within the Ethereum network. However, after deep diving into their design, some major limitation afloats: we believe their design is not open and secure enough, and only the tokenization of few assets are supported (BTC is the only token being supported or BTC overwhelmingly dominates others). This only allows very limited assets to enter the DeFi world through WBTC. For example, currently only 20,000 WBTC were issued and the supply is highly dependent on distributors. Their redemption channel design is not unimpeded.

BoringDAO’s mission is to help DeFi expand its compatibility in the form of DAO. BTC, XRP, BCH, BSV, LTC, ADA, EOS and other blockchain assets and their subsidiary tokens that have been left out can be converted into the wrapped token (ERC-20 token) decentrally and safely with low friction. These assets can participate in the broader DeFi world on Ethereum and finally usher in a brand-new open financial era.

The creation of BoringDAO expands the current DeFi landscape supported by DeFi and will eventually serve as an important infrastructure that connects DeFi to the broader crypto world. BoringDAO will operate under community governance mechanisms, while BOR (Boring Token) will serve as BoringDAO’s native governance token.

3. How can I Participate in BoringDAO Ecosystem

Be a Minter

  • Transfer your BTC into BoringDAO with app.boringdao.com

  • Get your oBTC and BOR reward

Pay a certain amount of commission fee to have one’s own non-ERC-20 token converted into a wrapped ERC-20 version, namely minting and redemption of one’s native cryptocurrency assets.

Be a Tunnel operator

  • Pledge your BOR token into oBTC "Tunnel" with app.boringdao.com

  • Lift the "Tunnel" capacity

  • Get your Pledge Provider Token in your ethereum address.

Pledge BOR assets to set up a tunnel, be responsible for the complete minting and redemption process, and obtain a part of the commission paid by users.

Each tunnel has “operators,” and their mission is to help users complete minting/redeeming cryptoassets in the tunnel.

Explanation on participating in tunnel operation (pledge): BOR Holders participating in tunnel pledge will become operators of the tunnel. In other words, it works similarly to staking. For example, once the proposal is approved, the proposer will become the initial ‘operator’ of the tunnel because he has deposited BOR as a pledge for the tunnel at the proposal stage.

Subsequently, when more operators join in, all operators will obtain the respective share of the tunnel commission according to the respective proportion of the pledge amount. However, at the same time, if there is a Black Swan risk in the custody assets of the tunnel, the tunnel pledge will be settled and compensated to the minting users in proportion.

Farmer

  • Put your oBTC into "Wild Wild West" for more $BOR reward

  • Put your PP Token into "Manifest Destiny" for more $BOR reward

  • Farm3/4 will announce soon in coming weeks.

Farm in our pools, get competitive APY. Derivative assets need scenarios, and assets issued through BoringDAO also need downstream scenarios and ecological support. In order to enable b assets to quickly obtain specific scenarios and ecological support in the early stage, BoringDAO has set up a staking pool in which users can receive rewards by pledging b assets, BOR, etc. We can vividly call this process “Boring Farming.” BOR distributed in this way accounts for about 30%.

For example, Alice cast 2 oBTC through the tunnel. However, in the absence of early oBTC scenarios, oBTC assets cannot participate in other DeFi mining for the time being. Alternatively, b assets can participate in the staking rewards provided by BoringDAO and obtain objective BOR bonus.

4. References