jakiro
Author: ningning, independent researcher Source: x,@0xning0x
Master Protocol is a emerging interest rate exchange market and points FARM accelerator in Bitcoin ecosystem.To some extent, we can think of it as the PENDLE PENDLE, but it cannot be regarded as a simple fork version of Pendle.To truly understand the value of Master Protocol, you need to observe from the perspective of the BTC-Fi value chain.
Bitcoin programmable narrative is infected from the East to the West.With Bitcoin Magazine (Bitcoin Magazine) and TOP1 encrypted venture capital Polychain debate, setting standards for Bitcoin L2, Bitcoin programming has finally become a serious new Crypto investment in the West.Pentera, Coinbase Ventures, Polychain, Bankless and other top VC/ Investment DAOs, they have invested in projects that incubate the track. Babylon, Botanix, BOB, Mezo and other batch of Bitcoin ecological projects with Western blue blood have been announced one after another that they have been announcedHigh amount of financing.
However, we are still in the first stage of Bitcoin’s programmatic new era. There are still some major technical primitives and application scenarios that need to be solved urgently.These issues include the problem of how to use BITVM to run fraud certification / validity proof, how to solve the problem of COPY from Ethereum and Bitcoin ecological player market demand, and so on.
The core of the original technical problem is to find a security solution that can inherit the Bitcoin L1 simple and elegant.The issue of application scenarios is how to discover a Bitcoin programming scheme compared to EVM compatibility + smart contract solutions. It has a relatively advantageous blue ocean market.
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Bitcoin programming two major application scenarios
Technical primary problems and application scenarios are not isolated, but interconnected.
In view of the programming capabilities of Bitcoin script and OPCODE, it is difficult to achieve Turing’s complete in the short term.Bitcoin’s programmatic development direction can only be Rollup and status channels (lightning networks) in the expansion scheme under the chain.
However, in the traditional market of GM Rollup+ DAPP based on smart contracts, Ethereum has obtained a monopoly position, and has built a broad moat in developers, users, and market awareness.
Therefore, in terms of Bitcoin programmable projects, the direction of their breaking the situation is in the emerging DAPP ROLLUP/Appchain paradigm, providing block space security/economic security/economic security for these DAPP ROLLUP/Appchain.
At present, almost all well -known DEFI, NFT, Web3 social, web3 games and other application layer projects including Uniswap and AAVE are re -made with DAPP ROLLUP/AppChain paradigm.Compared with Ethereum, which has a $ 1 trillion precipitated value, the highest degree of decentralization, and the strongest block space security, has a huge comparative advantage compared to Ethereum.
And Bitcoin RESTAKING has given BTC’s ability to give birth.Compared with the DEFI/CEFI lending model, the BTC native life ability has stronger positiveness and can provide more powerful security infrastructure for DAPP Rollup/Appchain prosperity.
Compared with Eitenlayer, Karak, Symbiotic, the RESTAKING protocol EigenLayer, Karak, and Symbiotic, the bitcoin RestAKING protocol Babylon needs additional solution to the BTC’s self-hosting and Staking-Slash on the Bitcoin main network.In fact, these two problems are also the core issues that Bitanix, Mezo and other Bitcoin programmable POS chain expansion solutions should be solved.
Whether it is the Babylon cryptographic solution, or the decentralized multi-signation network (SpiderChain) solution of Botanix, you need to introduce the Staking-SLASH mechanism and generate wrap assets.
In order to share the instant liquidity of Slash risk and obtain the assets of Witch -to -interest assets, the market demand of Lquidity Staking (LST) is generated.In order to allow DAPP Rollup / Appchain to use Bitcoin’s block security space / economic security, the infrastructure construction of the RESTAKING protocol is also imperative.
And when the LSTAKING protocol of the Bitcoin ecology has sprung up like a bamboo mushroom, a interest rate exchange market that can be priced at the interest rate price of the wrap assets of the Bitcoin ecosystem is very important, and the Master Protocol occupies this ecology.Bit.
Master Protocol is still in the test network stage. The support of Bitcoin’s interest assets include Botanix’s MPBTC and Bounterbit’s StbbTC (in gray test). The future plan also supports Babylon and Bitlayer’s interest assets.Users can apply for a test network MPBTC through the faucet.Same as PENDLE’s implementation mechanism, there are 3 types of Master Protocol, which are standardized packaging of live assets token MSY, principal Token MPT, and interest token Myt.
After packaging assets into the MSY standard token, users can obtain MPT Token with unlocking period and Myt Token that can instantly sell in AMM DEX, thereby achieving interest to obtain the assets in advance.Of course, users can also buy myt token directly at AMM DEX, get basic floating yields and points, participate in the value discovery process of the native currency of the original asset agreement, and obtain higher potential returns.
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Screenshot of Master Protocol Test Network Products
At the market strategy level, Master Protocol has stimulated community recommenders and interest rate exchange market traders through equity PASS card NFT and transaction points, and enhances the use of agreement in the Bitcoin ecosystem.
Finally, for the current Bitcoin ecology, the market size of new assets such as Ordinals and Runes is limited (~ $ 10B), and there is no big imagination space in the face of the powerful network effects of Ethereum ecology.The BTC market with a maximum limit of $ 1 trillion is a vast blue ocean.In the BTC market, the RESTAKING protocol has a stronger positive and external, which can provide stronger security infrastructure for DAPP ROLLUP/AppChain prosperity.Master Protocol is responsible for pricing for these Wrapped assets for the RESTAKING protocol, stuck a key ecosystem.However, there are not many time windows for Master Protocol. You need to build your own moat before the Pendle expands to the Bitcoin ecosystem.Therefore, the Master Protocol team is intertwined with Babylon and BoundceBit, and plans to launch the main network version in June.
