2024 has been a landmark year for Bitcoin, with notable advancements such as the approval of BTC ETFs by U.S. and Hong Kong regulators and the completion of the Bitcoin halving in May. These milestones have set the stage for further expansion and innovation within the Bitcoin ecosystem. One of the most promising developments is the rise of Bitcoin decentralized finance (DeFi), or BTCFi, which aims to introduce decentralized financial functions into the Bitcoin network.
HTX Ventures has announced a strategic investment in CoreX, a decentralized exchange (DEX) built on the Core Chain. Core Chain is a public blockchain that addresses Layer1 network issues such as security, speed, and decentralization through its innovative Satoshi Plus consensus mechanism. This consensus model leverages the security of the Bitcoin network to provide efficient transaction processing and maintain decentralization.
CoreX aims to become the primary gateway and liquidity hub within the CoreDAO ecosystem, offering a new trading experience for users. HTX Ventures believes that CoreX will be a pivotal player in the CoreDAO ecosystem, acting as a center of liquidity and boosting the ecosystem's overall competitiveness.
Bitcoin has traditionally been seen as a store of value, largely used for holding rather than active financial functions. However, the introduction of BTCFi is set to change this narrative. BTCFi allows Bitcoin holders to engage in activities such as on-chain lending, decentralized trading, and futures trading. Despite its potential, BTCFi currently accounts for only 0.09% of Bitcoin's total market capitalization, with a total value locked (TVL) of approximately $1.2 billion. This is significantly lower compared to other public chains with smart contract capabilities, such as Ethereum, Solana, and Ton, which have much higher TVL-to-market cap ratios.
HTX Ventures sees immense growth potential in BTCFi. By enabling Bitcoin holders to fully utilize their assets through staking, lending, and market making, BTCFi could significantly enhance the value of Bitcoin and create new income-generating opportunities for its holders. As BTCFi protocols continue to evolve, they are expected to compete with, and potentially outperform, existing public chains, fostering a more diverse and robust DeFi ecosystem.
The Core Chain's design includes non-custodial staking, which allows BTC holders to participate in the network's consensus and earn staking rewards without losing control of their assets. This reduces the barriers for BTC holders to engage in staking and enhances the security of the Core Chain. The hybrid consensus model, combining Delegated Proof of Work (DPoW) and Delegated Proof of Stake (DPoS), ensures network security while enabling fast transaction processing.
CoreX aims to provide an exceptional trading environment through its user-friendly design and comprehensive toolkits. By utilizing the Uni V3 infrastructure, CoreX addresses key challenges such as liquidity shortages and slippage. Additionally, it integrates AI technology to create a vibrant social trading hub, offering features like real-time charting tools, technical indicators, and social trading capabilities.
CoreX also emphasizes social trading, offering global chat rooms, coin-specific chat rooms, and 1-on-1 encrypted messaging. The platform plans to launch a massive social airdrop event, offering up to 10 million tokens, which has already garnered significant attention.
HTX Ventures' investment in CoreX underscores its commitment to advancing the CoreDAO ecosystem. By leveraging its resources and expertise, HTX Ventures aims to drive the growth of CoreDAO's DeFi development, making CoreX a cornerstone of this burgeoning ecosystem.
