The leading cryptocurrency price indexing service CMC (CoinMarketCap) have formally added BitShares core token BTS, as well as smartcoins bitUSD and bitCNY to the important DeFi category. BTS is currently ranked #18.
“DeFi stands for “decentralized finance” and refers to the ecosystem comprised of financial applications that are being developed on top of blockchain systems. … Enabling advanced financial instruments such as DEX, tokenization platforms, derivatives and predictions markets.“
[Source: Binance Academy]
About bitUSD and bitCNY
These 2 smartcoins are DeFi products on BitShares since its inception. Smartcoin or MPA (Market Pegged Asset) on BitShares blockchain is very special smart-contract, where asset can only be “borrowed into existence” by entering collateral-based debt with blockchain using core BTS token.
Collateral ratio is mostly defined by block producers who are also providing 3rd party median price-feeds for those assets (currently 2-day moving average price-feed according to BAIP2). Regardless of the rules – the higher ratio, safer is the debt against volatility of BTS core token.
At any time the user can also ‘settle’ directly with the blockchain, getting back the collateral and receiving/losing any difference. The rice feeds (from all the witnesses) ensure the blockchain can adjust all positions, transparently and automatically in seconds. This includes ‘calling’ and closing user positions that cross the set limits.
BitAssets were created by BitShares blockchain to bring stability into volatility of early cryptocurrencies – where every borrower entering smart-contract becomes issuer of it to himself by using his own BTS token for collateral. We will be free to say that it’s first asset in crypto history that can satisfy person who “don’t trust anyone”.
BitAssets give businesses all the benefits of fast low-cost transactions, while shielding users as much as possible from volatility. It’s also a lot less confusing to perform global trade in old-fashioned terms of Dollars and Yuan!
A big thanks to long-term contributor Mathew for taking the initiative on due process with CMC. For any fintech and defi veteran and professional, this may be interesting:
“BitShares was a DeFi platform before the term existed”.