Featured Use Case: Using BTC in LBP and NFT with Kintsugi & Basilisk
Disclaimer: As always, none of this is investment advice! Don’t try to buy tokens just because some dude on the internet wrote a blog with a few dank memes. DYOR! DeFi is fun — but you gotta stay frosty to avoid being rugged.
Quick Intro: Kintsugi and Basilisk
What is Kintsugi?
Kintsugi is interBTC’s canary network (an early and highly experimental version of interBTC where new features and risk-friendly parameterizations will be released first and tested). Kintsugi brings radically open Bitcoin to Kusama via kBTC — the first fully decentralized and economically trustless 1:1 BTC-backed asset. Users can always redeem kBTC for BTC, or will be reimbursed in collaterals at a beneficial rate — as such, users only trust that Bitcoin and Kusama are secure. kBTC will help kickstart liquidity on parachains such as Karura, Moonriver, Shiden — and offer new BTC DeFi products.
What is Basilisk?
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Basilisk is a liquidity bootstrapping protocol designed to operate as a parachain in Kusama. Basilisk is a modular Automated Market Maker (AMM) chain which provides liquidity bootstrapping functionality for any new cryptoasset. Basilisk isn’t a mere canary network — it is an independent chain based on HydraDX’s code base.
It allows participants to choose from a variety of AMM models which govern the price discovery. The API design of Basilisk allows for AMM models to be plugged in easily: From basic spot trading to purpose-specific models for derivatives such as PERP or the Siren Protocol.
Kintsugi + Basilisk: Using BTC in LBP and AMM
At the begging Basilist will start will start as an LBP which will gradually evolve into XYK pools after sufficient liquidity has been bootstrapped.
Invest BTC in portfolio that rebalance automatically and generate yield
You will can use your minted kBTC in pair of KSM, BSX, kUSD or other tokens which you’re HODL.
Your portfolio algorithmically manages assets by rapidly rebalancing positions and earning trading fees over time.
Receive rewards in BSX from pool which increase the longer you stay.
Using single kBTC for liquidity
Interestingly, Basilisk’s approach enables LPs to provide single assets (such as kBTC) for liquidity. It allows the protocol to live up to its comparison with an ocean. How? The ocean can expand and shrink at will depending on the liquidity.
Launch your token’s IDO with contributions in BTC
LBP (Liquidity Bootstrapping Pool) is an adjustable Balancer smart contract that is used for initial distribution and price discovery of new assets. It uses a constant selling pressure and has a limited time duration, during which price continually drops if there is no demand.
Basilisk helps young cryptoprojects distribute tokens to their communities while navigating initial price discovery. You can use kBTC in LBP and redeem kBTC for actual BTC on Bitcoin.
Using LBP for IDO is most probably a fair launch according to HydraDX IDO’s experience.
BTC in NFT
Basilisk is going to develop NFT platform so you’ll be able to use your minted kBTC on the marketplace.
How to Support Kintsugi
Helping Kintsugi join the parachain party is worth it!
Kintsugi is currently participating in the auctions and has a crowdloan open.
