What to know:
- Elastos, the moderately proud parent of the BeL2 Bitcoin DeFi protocol, has announced its latest abnormally named newborn: the Bitcoin Dollar (BTCD).
- Apparently, the project’s ambition is to reincarnate the Bretton Woods system—because nothing says “progress” like digitally rehearsing monetary arrangements from the 1940s.
- This entire business is part of the magnanimous, brave, and sometimes baffling quest to make DeFi run on Bitcoin, the world’s most charismatic digital rock.
Somewhere on the blockchain, where things make sense only if you don’t think about them too hard, a project has decided to debut a stablecoin fully backed by bitcoin tokens. The idea? To construct a financial universe with bitcoin at the galactic center—because gold is so last millennium, darling. 🪙✨
Elastos, the organization that brought you the BeL2 protocol (and possibly some baffled product managers), has now unleashed the Bitcoin Dollar (BTCD) upon an unsuspecting market. They picked Wednesday for this act, a day astrologically proven to be completely arbitrary.
You might remember Bretton Woods from brave lessons in history books nobody actually finished. In short, it was a cozy mid-century arrangement that married the US dollar to gold, aiming for global monetary serenity. Elastos’ big-brained plan? Replace the shiny metal with Bitcoin—now with 100% more digital existential dread!
Stablecoins, you see, are digital tokens designed to stay as boringly stable as your grandmother’s retirement fund. Their job is to mitigate the rollercoaster experience of crypto by being pegged to things that don’t generally vanish overnight, like the US dollar. This way, you can panic about pie charts instead of price charts.
Traditionally, dollar-pegged stablecoins are backed by short-term US Treasuries—those mystical government IOUs which make economists nod off serenely. But Elastos thought, “Why not back ours with Bitcoin—a currency whose only constant is drama?”
To keep BTCD from imitating a bouncy castle at a child’s party, Elastos generously overcollateralizes it: for every BTCD, there’s 160%-200% as much bitcoin locked away, just in case the universe decides to prank the market. Head of marketing, Ahmed IJ, bravely explained this on Telegram, while almost certainly wincing at live price feeds.
The system works with helpful oracles, which sound like fortune tellers but are actually data feeds (disappointing, I know), delivering the BTC-USD rate at every block. If the coverage sinks to 110%, opportunistic arbitrageurs get to snatch up cheap bitcoin, fixing the problem via the ancient crypto rite of “grabbing stuff at a discount and running.”
Further drama unfolds as BTCD’s price refuses to behave: if it trades above a dollar, holders ceremoniously burn it and reclaim precious bitcoin, causing supply to shrink and the price to slide. If BTCD dips below the sacred $1 threshold, users can conjure fresh BTCD by sacrificing new bitcoin, selling it off, and restoring price equilibrium—think of it as financial whack-a-mole with fewer mallets but far more @elonmusk tweets.
Ultimately, the BTC-backed BTCD is a subplot in the great blockchain saga: using bitcoin’s legendary stability (a phrase only sensible in the quantum realm) to unleash decentralized finance, powered by the mathematical equivalent of duct tape and hope. 🙃
Read More
- How Angel Studios Is Spreading the Gospel of “Faith-Friendly” Cinema
- Hero Tale best builds – One for melee, one for ranged characters
- Gold Rate Forecast
- Comparing the Switch 2’s Battery Life to Other Handheld Consoles
- EUR CNY PREDICTION
- Castle Duels tier list – Best Legendary and Epic cards
- Mini Heroes Magic Throne tier list
- 9 Most Underrated Jeff Goldblum Movies
- Kendrick Lamar Earned The Most No. 1 Hits on The Billboard Hot 100 in 2024
- Pop Mart’s CEO Is China’s 10th Richest Person Thanks to Labubu
2025-06-18 19:30