How It Works
StrongHodl drives BTC's entry into DeFi, enabling holders to generate additional income through shBTC.
StrongHodl: Revolutionizing Bitcoin Participation in DeFi
How It Works StrongHodl operates using the Babylon Protocol, providing users with a 1:1 liquid representation of their staked Bitcoin. This tokenized representation of BTC is known as shBTC (synthetic BTC), which can be freely traded and used within DeFi ecosystems. This enables users to earn additional yield through liquidity protocols. With Babylon's secure Proof of Stake (PoS) system, users can trust the economic security of the protocols and their tokenized holdings.
StrongHodl uses the Babylon Protocol to create shBTC, a 1:1-backed liquid token for BTC staking. Users can leverage shBTC in the DeFi ecosystem to generate yields through strategies like lending, liquidity pools, and yield farming.
Background Historically, Bitcoin's architecture, limited by its design, lacked the ability to create advanced smart contracts, restricting its use in DeFi. However, existing technologies such as conditional scripts, timestamps, and external solutions have extended its functionality, enabling mechanisms that simulate staking. These advancements allow Bitcoin, previously passively stored in wallets, to now be mobilized across the DeFi ecosystem.
StrongHodl's Objective The primary goal of StrongHodl is to offer a liquid staking solution for Bitcoin, merging the security benefits of Proof of Stake (PoS) with the flexibility of DeFi through a community-driven protocol. This is achieved by:
Liquid Staking with shBTC
Users can deposit Bitcoin into the protocol and receive shBTC, a token backed 1:1 by Bitcoin, which can be used across DeFi platforms.
shBTC retains the liquidity of the original BTC, enabling users to participate in lending, liquidity pools, and other DeFi applications.
AI Agent
Automates DeFi yield strategies and enhances protocol security through predictive analysis, proactively identifying and mitigating risks.
Boosts the protocol's presence on social media by detecting trends, optimizing promotional campaigns, and fostering community engagement with personalized strategies.
Decentralized Governance
Through the DAO and Fortresses, users actively participate in decision-making, configuring key protocol aspects such as fees, new integrations, and updates.
Fortresses strike a balance between competitive and collaborative governance, where each unit seeks to maximize its impact within the DAO while providing protocol improvements.
Multichain Support
The protocol initially launches on Ethereum and Solana, offering access through bridges to two of the most robust DeFi ecosystems. This ensures users can leverage the best yield opportunities across different chains.
Merit-Based Community Incentives
Community users can achieve different roles within StrongHodl based on their activity level, granting specific privileges and rewards. This system incentivizes participation and provides additional benefits to committed users.
Real-Time Analytics with Dune
Integration with Dune Analytics to track shBTC activity, protocol performance, and key metrics. This tool offers transparency and enhances decision-making.
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