Ordinals

Inspiration

Our inspiration came from Benddao, the peer to pool NFTfi lending protocol on Ethereum which has over $2B in volume. Similar to real life, ordinal asset holders that need access to liquidity are faced with a problem.

What it does

By creating custom lending contracts on the EVM compatible sidechain, Rootstock, and combining it with DLC compatible staking contracts on native Bitcoin L1, we can help ordinal holders find liquidity. Users can stake their ordinals and borrow rBTC against it, in a completely decentralized, automated, and transparent manner.

How we built it

We wrote 2 smart contracts, lending, and treasury. The lending contract takes in data from the staking contract, calculates the interest rates, and is also responsible for releasing the ordinal when it senses loan payment has been received. The treasury contract is responsible for depositing rBTC to the user. We also created a custom DLC ordinal staking contract in collaboration with the Deeplake team. Then we designed a custom front end that calls these contracts directly. We installed 2 wallets, the rainbow wallet API (metamask) for rbtc transactions, and the xverse wallet which we use for ordinal staking.

Challenges we ran into

The Deeplake DLC integration is rather a problematic one. There are no APIs that Deeplake provides at the current stage so we had to work very closely with their team to procure a custom staking API.

Accomplishments 

We're proud we can now batch multiple ordinals and allow users to borrow against multiple ordinals.

What we learned here is still a lot of missing infrastructure in the BTC/ordinal space.

What's next for OrdinalDAO - Ordinal Lending on RootstockBuild out a liquidation mechanismRaise a liquidity pool through a brc20 sale. Create custom subgraphs for loan health management using the future BTC zk-rollups.

Built With

bestinslot.xyz

deeplake

dlc

hardhat

metamask

oracle

ordex.ai

ordinalhub

solidity

xverse