Whitepaper
Whitepaper
Obelisk: Unlocking the Potential of Bitcoin Assets
Introduction
Obelisk, a subproject of the NodeDAO initiative, is poised to revolutionize the management and liquidity of Bitcoin (BTC) assets. Recognizing the growing demand for secure and streamlined BTC-based applications, the Obelisk protocol aims to create a transparent and trustworthy environment for BTC asset aggregation.
The Core Approach
At the heart of the Obelisk protocol is a unique approach that involves locking underlying BTC assets while issuing Liquid Custody Tokens. This approach not only unlocks the liquidity of native BTC but also seeks to explore various applications for both the underlying and upper-layer liquidity assets, ultimately generating returns for users.
Scalable BTC Applications
Obelisk solves the BTC application scalability problem by building a decentralized committee hosting network. The architecture supports BTC-MPC (multi-party computation) with small signature shards and dynamic multi-signatures, thereby reducing centralization risks and improving operational efficiency.
Furthermore, Obelisk aims to create an on-chain BTC DeFi strategy library, balancing flexibility and security. By unlocking liquidity and enabling multiple asset applications, Obelisk strives to maximize the value of BTC-based assets.
Innovative Asset Application Model
Obelisk's Innovative Asset Application Model encompasses two key components:
Underlying Assets Yield Aggregation: Users can stake their native BTC into the Obelisk Vault on the Bitcoin chain, receiving an equivalent amount of Obelisk Tokens in return. The yield from the underlying BTC is generated through methods like Restaking, PoS (Proof-of-Stake), and CeFi (Centralized Finance).
Upper Layer Liquidity Assets Yield Aggregation: Obelisk enables users to leverage their liquidity assets within traditional DeFi ecosystems , to participate in DeFi protocols and earn returns from the application providers.
The Obelisk Protocol
The Obelisk Protocol is a comprehensive framework that seamlessly integrates the Bitcoin and Ethereum blockchains, allowing for efficient management and utilization of BTC-based assets. The protocol diagram showcases the interactions between the Obelisk Vault, Obelisk Network, Yield Routes, and Yield Pools, providing a versatile and secure platform for BTC asset management and liquidity release.
Key Features
Obelisk's key features include:
Security: Ensuring the safety and integrity of BTC-based assets
Convenience: Streamlining the management and utilization of BTC assets
Multiple Yield Strategies: Providing users with a diverse range of options to generate returns on their BTC holdings
With its innovative approach, Obelisk aims to unlock the full potential of Bitcoin assets, fostering the development of a thriving BTC-based ecosystem and empowering users to maximize the value of their digital holdings.
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