Introducing uBTC, a BTC-Accumulating Liquid Staking Solution for Harmony ONE, by UtilityDAO

Community Announcements
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Expecting to go live in 2025, uBTC revolutionizes the way Harmony users can stake ONE and indirectly accumulate BTC.

What is uBTC?

uBTC is a liquid staking token that allows ONE holders to:

  • Indirectly accumulate BTC: All staking rewards are converted into on-chain BTC.
  • Maintain liquidity: Trade uBTC at any time.
  • Participate in BTC Yield Farming: Earn BTC interest by staking uBTC in our rebasing farming contract.

Our solution provides a seamless way to stake ONE and gain exposure to BTC, acting as a BTC-accumulation tool for the Harmony ecosystem.

uBTC Token Address: (To be deployed)

FeeWallet: (To be deployed)

uBTC - ONE LP Pool Address: (To be deployed)

:robot: Smart Contracts

  • StakedONEContract: (To be deployed) - Handles ONE staking and uBTC minting/burning.
  • uBTCRewardsConverter: (To be deployed) - Converts ONE staking rewards into BTC onchain.
  • RebasingFarmContract: (To be deployed) - Rebasing contract where uBTC holders can farm BTC.
  • OnchainValidatorRelay: (To be deployed) - Manages interaction with Harmony validators.

Benefits of uBTC

uBTC offers several key advantages:

  • Automated BTC Dollar Cost Averaging: Automatically convert your ONE staking rewards into BTC, allowing you to consistently acquire Bitcoin over time.

  • Liquidity and Flexibility: Maintain liquidity by being able to trade uBTC at any time. Use your uBTC in DeFi protocols or stake to further your BTC growth.

  • Consistent BTC Growth: Staking uBTC provides exposure to BTC rebasing rewards, amplifying your efforts to grow your BTC portfolio.

  • Consistent and Reliable Validator Selection: Our validator selection ensures consistent rewards that contribute to your ongoing BTC accumulation

  • BTC Rebasing Rewards: Stake uBTC in our farm to earn BTC interest with a dynamic rebasing model. Our rebasing contract supercharges your BTC accumulation over time

  • Auto-Compounding (Indirect): Your staked assets in ONE grow, and so does your potential BTC earned through rebasing, minimizing required interactions. Set-it-and-forget-it, UtilityDAO does the work for you

How uBTC Staking Works

  1. Connect your wallet to the uBTC dApp using your preferred wallet.
  2. Deposit your ONE tokens into the smart contract.
  3. Receive an equivalent amount of uBTC tokens (1 uBTC = 1 ONE).
  4. The staking rewards from ONE are converted into BTC and accumulated into the RebasingFarmContract.
  5. Stake your uBTC in the RebasingFarmContract to earn BTC interest which automatically compounds.
  6. Utilize the uBTC in other DeFi protocols if you choose like swap.harmony.one

uBTC-ONE LP and uBTC-BTC LP

  • Provide liquidity on DEX’s with uBTC to increase liquidity, earn fees and access additional earning opportunities.

If you want to unstake your uBTC:

  1. Use the dApp to unstake your uBTC.
  2. Wait for 7 epochs to unstake your funds.
    (7 epochs currently takes ~7 days)
  3. Redeem your uBTC for ONE via the dApp or Swap your uBTC on swap.harmony.one for instant redemption.

UtilityDAO Team Experience

The UtilityDAO team has:

  • Worked in crypto for 2+ years.
  • Deep involvement in the Harmony community since day one.
  • A track record of deploying user-centric smart contracts:

Key Features

  • Industry low 1% fee on staking rewards
  • Expert validator selection
  • BTC Rebasing farming contract
  • 1:1 uBTC peg to ONE
  • Unique Aspects
    • Fills gap in providing BTC rewards and staking in a user friendly interface
    • Set-and-forget Bitcoin acquisition using a Dollar Cost Average strategy

Goals

  • 0.1 million ONE staked
  • 0.2 million ONE staked
  • 0.3 million ONE staked

Future Plans

  • Gradual Decentralization:
    • Transition to a multisignature wallet consisting of UtilityDAO members and core Harmony protocol and ecosystem partners.
  • Enhanced Transparency:
    • Develop analytics dashboard for real-time performance tracking.

Fees

  • No transaction fees.
  • No deposit fees.
  • 1% fee on collected staking rewards from ONE, which are converted to BTC.
  • Dynamic rebasing contract fee, used to pay out rewards from uBTC staking. This fee will fluctuate based on contract parameters including expected runway and current available funds, making it a effective way to manage fund distribution.

Disclaimer

  • This document is a draft and is subject to significant changes. We are actively seeking community feedback. Please feel free to share your criticisms, concerns, and enthusiasm. Together, we can build a better toolset for users on Harmony!

Some extra information on Dollar Cost Averaging: Dollar-Cost Averaging (DCA) Explained With Examples and Considerations

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Nice concept. Keep us updated :ok_hand:

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Looks good. Look forward to seeing this.

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Interesting project for those wanting exposure to BTC. Could you define “expert validator selection”. I’m assuming it will be a fair and open selection process after the Tranquil liquid staking fiasco.

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Great question and we are trying to further define the validator selection criteria so that these criteria are transparent to everyone.

Currently we are looking at validators who:

  1. Contribute to meaningful discussions on HIP proposals
  2. Retain good uptime practices and redundancies
  3. Are elected 99%+ of the time

With uONE we try to maximize staking rewards but with this new product we foresee a more stable / conservative approach in validator selection. Hope this clarifies a little bit, but always feel free to ask and discuss further.

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Another exciting offering from the UtilityDAO!

How will BTC be brought on the chain to back this up? Will we be getting layer zero BTC shortly? I’m just curious as to the method and cost of moving BTC on/off the chain.

I’m excited to hear more as we get closer.

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:slight_smile: Thank you for the kind words.
We will be buying onchain BTC via swap.country that has been bridged already, we might have to bridge some more onto harmony using layerzero but we do not foresee that with current traction and reward numbers.

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Currently working on a transparent document that will be used as launch manifest, enjoy the last days of 2024!

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Sounds good. As a validator, it’s hard to promote these liquid staking protocols if the validator selection process isn’t fair, open, or transparent. For community-building purposes, it’s important to have validator buy-in as we generally have a large delegator following who may be more willing to try liquid staking alternatives.

To that point, may I recommend that you consider social metrics in your validator selection process? It’s much more beneficial to support validators with, let’s say, at least 500 combined social media followers versus only 10 or no social media presence at all.

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Thank you, @ValidatorONE, for your insightful feedback. I acknowledge the importance of fair, open, and transparent validator selection, for any dapp but particularly for liquid staking protocols. Your point about validator buy-in and its impact on delegator participation is well-taken, and I appreciate your suggestion to include social metrics.

We are committed to a thorough process, and I’m planning a validator deep dive this week. I will be incorporating these considerations, and you can expect to see some tangible results by Friday.

1 Like