# Welcome to BeFi Labs
Welcome to BeFi Labs, where you can explore Bitcoin’s token ecosystem and enjoy the journey. As the liquidity layer for Bitcoin, we provide BTCfi enthusiasts with a central hub to interact with tokens on Bitcoin.
Our platform integrates with leading wallets like MetaMask, Phantom, and OKX, as well as chains including Bitcoin, Ethereum, and over 10 L2s, connecting the entire Web3 space to Bitcoin's token economy. With fees so low they're practically freezing, BeFi Labs offers an enriching and enjoyable experience for all.
# Background
Satoshi created Bitcoin as a peer-to-peer cash system, a vision that many Bitcoiners see as the ultimate use-case for the cryptocurrency. However, from the early days, there has been a push to develop other asset types on Bitcoin's blockchain. Bitcoin serves as the network, a peer-to-peer ledger that tracks unspent transaction outputs (UTXOs), which are the records of all Bitcoin transactions. The term 'bitcoin' (with a small 'b') refers to the asset itself, which is transferred across this network. While 1 bitcoin will always equal 1 bitcoin, the question arose: what if we could build other asset types that could live and move on Bitcoin?
For example, Colored Coins emerged as an early attempt to create additional asset types on Bitcoin's blockchain. The concept was introduced by notable figures like Yoni Assia, Vitalik Buterin and Meni Rosenfeld around 2012. Essentially, Colored Coins are bitcoins with a "mark" that specifies their unique purpose or value, which can be tied to real-world assets like property, shares, or even collectibles, laying the groundwork for NFTs and fungible tokens on Bitcoin. While Bitcoin was not ready for a token economy in 2012, it has developed tremendously since then to get where it is today.
### **The Four Upgrades that Led to Today**
1. Segregated Witness (SegWit): Implemented in 2017, SegWit was a critical upgrade that separated transaction signatures (witness data) from transaction data, reducing the size of each transaction. This increased Bitcoin's block capacity, allowing more transactions per block, and addressed transaction malleability—a vulnerability that could alter transaction IDs, setting the stage for further enhancements to Bitcoin's scalability and functionality.
2. Taproot: Activated in 2021, Taproot builds on the improvements made by SegWit, further enhancing Bitcoin's privacy, scalability, and flexibility. Taproot's integration of advanced scripting capabilities enables more sophisticated smart contracts and multi-signature setups. Together with SegWit, Taproot's enhancements facilitated the creation of new applications and protocols, such as Ordinals, by providing a more efficient and private transaction environment.
3. Ordinals: Leveraging the advancements from SegWit and Taproot, Ordinals introduced a new way to create and transfer unique digital assets, including non-fungible tokens (NFTs), directly on the Bitcoin blockchain. This protocol allows for the inscription of digital art, collectibles, and other unique assets, expanding Bitcoin's use cases beyond traditional currency. A key aspect of Ordinals is the introduction of BRC-20 tokens, which are fungible tokens similar to Ethereum's ERC-20.
4. Runes: Runes further extend Bitcoin's functionality by enabling the creation and management of fungible tokens on the Bitcoin blockchain. Similar to ERC-20 tokens on Ethereum, Runes allow for the representation and transfer of various assets, such as digital currencies, commodities, or real-world items.\
Ordinals, BRC-20, Runes and other protocols from the basis of Bitcoin finance - BTCfi. For the first time, Bitcoin has a token economy to call its own.
# The Challenge
Solving Accessibility and Latency
In the quest to bring BTCfi to the forefront, the challenge of bootstrapping liquidity looms large. Unlike the bustling ecosystems of Ethereum and Solana, where DeFi projects thrive on abundant liquidity, the Bitcoin space is still finding its footing. Here, the story is different—liquidity is scattered, making it tough for new projects to find their place and for markets to flourish.
Trading BRC20 with Wallet Limitations: Imagine the frustration of Web3 users eager to explore BRC20 tokens, only to find their favourite wallets like MetaMask don't support these assets. It's like being handed the keys to a new adventure, but finding the door locked.
High Fees for Purchasing Ordinals: For those venturing into Ordinals and BRC20 tokens, the excitement is quickly dampened by steep transaction fees. This cost is more than just a number—it’s a barrier that makes participating in this new frontier feel out of reach for some.
Slow Ordinals Transactions: The anticipation of a new trade turning into a waiting game is another challenge users face. Transactions with Ordinals can be painstakingly slow, sometimes taking up to four hours.
The common thread of all these issues - a lack of liquidity.
How do we put instant, abundant liquidity in the hands of BTCfi enjoyoors?
# The BeFi Labs Solution
When we first aped into BTCfi at the end of 2023, we met the same roadblocks that many new users face—fragmented liquidity, high fees, and wallet limitations. Determined to create a better experience, we set out to build a solution from first principles that would enhance the trading experience not only for ourselves but for the millions of BTCfi enthusiasts projected to join in the near future.
The principles guiding BeFi are:
1. **Open:** We aim to bring as many people into the BTCfi ecosystem as possible, promoting inclusivity and accessibility.
2. **Frictionless:** Our focus is on cutting fees and eliminating unnecessary complexities, making the platform as user-friendly as possible.
3. **Fun!:** We wanted to turn the challenge of BTCfi into an enjoyable experiences.
This vision led to the creation of a comprehensive suite of products, designed to provide BTCfi enthusiasts with a single hub for all their needs:
* **Spot Trading Terminal:** Our spot trading terminal offers a smooth for buying and selling Bitcoin tokens, equipped with all the tools that traders love, like setting orders, advanced charting and lightning-quick execution.
* **Perps Trading Terminal:** Our perps trading terminal provides up to 60x leverage for the degenerate adrenaline junkies.
* **Liquidity Provision:** The breakthrough moment for DeFi came when everyone got the opportunity to provide liquidity to an exchange and share in the generated fees. users BeFi’s liquidity provision platform empowers users to contribute to and benefit from the liquidity pools. It’s a vital component for ensuring smooth and efficient trading across the platform, helping to stabilize markets and reduce slippage.
# Getting Started
How to connect your wallet and trade spot assets on BeFi Terminal
We’ve made it super easy for you to begin trading BTCfi assets with only two actions. All you need to do is connect your wallet and deposit some funds to get started.
Here’s how:
### **Step 1: Connect Wallet**
Choose from our growing list of 11 supported wallets that you wish to connect. Please note that you have two options when connecting wallets.
1. Connecting an EVM-compatible wallet and depositing USDT.
2. Connecting a Bitcoin wallet and depositing Bitcoin tokens.
### Step 2: Deposit Funds
The BeFi Terminal shines in allowing users to buy BTCfi assets like BRC-20, Ordinals and Runes with USDT, the most liquid stablecoin in the world. We currently support USDT deposits from 8 leading chains and are growing that list steadily. Alternatively, you can deposit BRC-20 assets on the Bitcoin network or other supporting chains.
# Making Your First Trade
Congratulations, your account is funded and you’re ready to trade.
Let’s go through our trading interface components one by one.
1. **Price Information:** This section displays the current price of the selected trading pair, in this case, PUPS/USDT. You can also toggle between different assets to track their live prices.
2. **Order Placement:** Here, users can execute trades by placing limit or market orders. You can specify the amount of tokens to buy or sell or choose to trade a percentage of your wallet balance by adjusting the slider.
3. **Order Book:** The order book shows the current buy and sell orders for the selected trading pair. The green and red blocks represent the stacked buy/sell orders at different price levels, providing insight into market depth.
4. **Price Chart:** This section contains a detailed price chart for the selected asset, including historical price movements and volume. Users can analyze trends and use various indicators to inform their trading strategies.
To place a trade, select the amount you wish to buy or sell as well and click to confirm. Please note that you will have to confirm the trade in your connected wallet as well.
Trading fees on BeFi Terminal are set at 0.1%.
# Providing Liquidity
Remember the orderbook from the last section?
It’s where the buyers and sellers list their orders at different price levels. The more orders in the book, the deeper the market.
As a liquidity provider, you’re not just watching the market—you are the market. By entering buy and sell orders on both sides, you build the foundation that keeps the trading pairs alive. The more liquidity you drop into a pair, the deeper the book gets, making the market move smoother.
BeFi Liquidity Pairs lets anyone add liquidity on BTCfi assets, boost the orderbook, keep the action flowing, and earn fees as the market moves.
### Adding Liquidity
When adding liquidity on BeFi Labs, you need to add liquidity for both tokens in the pair.
For instance, if you are adding liquidity to the $PUPS/$USDT pair, you must supply both $PUPS and $USDT.
If you do not hold both assets, you can easily perform a quick trade within the terminal to swap one asset for the other before providing liquidity.
### Removing Liquidity
You can easily remove your liquidity whenever you’re ready, with one click.
### Trading Fees
The trading fees are allocated as follows:
50% to liquidity providers
50% reserved for BeFi reactor participants
Please note: Liquidity Pairs are available for spot only
# Trading Perps
Our perps terminal is for serious users who want to add leverage to their position.
Leverage of up to 60x is available, and can be added in the orange section shown below. The rest of our perp terminal is largely similar to the spot terminal, with an order book, order form and chart for each pair.
In the next video, you’ll learn about getting started with perps in under a minute.
# Zero-Knowledge (ZK)
Befi's integration of Zero-Knowledge (ZK) proofs is a pivotal element in its blockchain architecture, serving as a critical mechanism for ensuring the integrity and trustworthiness of the platform.
## Purpose of ZK Proofs in Befi
The primary role of ZK proofs within Befi is to authenticate the continuity and unaltered state of its private blockchain to the public. Essentially, ZK proofs are deployed to verify that the blockchain remains uncompromised—neither by external malicious entities nor internal tampering. This verification process is crucial for maintaining user trust, as it transparently demonstrates that the blockchain data, particularly financial transactions, has not been manipulated for fraudulent purposes.
## Operational Mechanics
Befi employs a systematic and automated process for generating and recording ZK proofs. Every 8 hours, off-chain servers perform the following steps:
1. Extract the latest hashes from three critical datasets: spot orders, deposits, and withdrawals.
2. Combine these hashes using a transparent and secure hashing algorithm (Keccak256).
3. Record the resultant hash onto the Ethereum network, recognized for its high security and reliability.
This process is encapsulated in the following TypeScript code snippet
```
// Retrieve the latest hashes from various transaction records
latest_spot_order_hash = keccak256(latest_order);
latest_withdrawal_record_hash = keccak256(latest_withdrawal_record);
latest_deposit_record_hash = keccak256(latest_deposit_record);
// Generate the final hash to be recorded on the Ethereum network
final_hash = keccak256(latest_spot_order_hash + latest_withdrawal_record_hash + latest_deposit_record_hash);
// Store the ZK proof on the Ethereum network
saveZkProof(final_hash);
```
The efficacy of this method lies in its transparency and verifiability. By publicly storing the final hash on the Ethereum network, Befi enables anyone to independently verify the consistency of the trading, depositing, and withdrawing history against the recorded hash. This level of openness allows for the immediate detection of any discrepancies or anomalies, thereby ensuring the integrity of the blockchain and fostering trust among its users.
# Validator Scheme
Embedded within our platform's core is an intricate Validator Scheme, designed to fortify the withdrawal process with an unyielding layer of security. This framework delineates the strategic interconnection of several pivotal components: the Withdraw Signing API, a continuous scan for withdrawal requests, an Orders Database, and the Public Orders API.
## **Withdraw Signing API**
This API is the keystone of the withdrawal authorization process. It perpetually scans for new withdrawal requests, forming the front line in the defense against unauthorized transactions.
## **Continuous Validation Process**
Validators, denoted as Validator N, Validator N+1, and Validator N+2, are in perpetual vigilance. These sentinels of the system independently scour for new withdrawal requests, each maintaining their distinct, isolated orders data repository
## **Verification and Security Protocol**
* Upon detection of a new withdrawal request, each validator engages in a meticulous verification process. Utilizing its separately stored orders data, the validator ascertains the legitimacy of the request against a backdrop of historical order data.
* These validators operate in stealth, shrouded from the public internet. They are dispersed across diverse hostings and are accessible only through disparate accounts, ensuring that pinpointing their IP addresses becomes a Sisyphean task, absent direct access to the office computer with deployment scripts.
## **Legitimacy Confirmation**
Only upon affirmative validation does the withdrawal request receive the digital signature of approval. This signature is the quintessence of transaction legitimacy, ensuring that only validated requests reach the finality of execution.
## **API Integration and User Interface**
* The validated withdrawal request, now securely signed, is transmitted back to the user through the API. This marks the culmination of a rigorous, multi-tiered security protocol that upholds the sanctity of the user's assets.
This validator scheme is the embodiment of our platform's commitment to security, operational transparency, and architectural resilience. It is meticulously engineered to safeguard against any vector of compromise, thereby cementing user trust and maintaining the integrity of the transactional ecosystem.
# Wallet System
BeFi platform architecture lies an intricately designed wallet system, a testament to our unwavering commitment to security and user agency. The schematic presented herein delineates the methodology by which individual proprietors, herein referred to as product owners, may seamlessly amalgamate an array of cryptocurrency wallets under the aegis of a single, unified BeFi Account.
## **Integration Process**
Commencing with the premise of address addition, the product owner is presented with the capability to tether diverse wallet addresses—specifically, those of Bitcoin (BTC) and Ethereum (ETH) provenance—to their central BeFi Account. This integration is predicated on the establishment of unassailable proof of address ownership, an endeavor achieved through the generation and verification of a cryptographic signature. This digital signature serves as the linchpin of our security protocol, undergirding the trust structure of the entire system.
## **Decision Architecture**
A critical juncture in this protocol is the conditional evaluation of the wallet address's prior association with the BeFi Account. Should the address be hitherto unlinked, the protocol dictates a progression towards the signature verification phase. Conversely, if the system's records indicate an extant pairing, it judiciously circumvents any redundant authentication processes, thereby upholding our design philosophy of efficiency.
## **Continuity of Engagement**
Subsequent to the successful execution of these preliminaries, the system transitions into a state of preparedness for sustained user engagement. The product owner is thus afforded the latitude to leverage the full suite of application functionalities, with the assurance that their array of digital assets is now adeptly interfaced with the BeFi ecosystem.
##
# Local Blockchain
Befi's blockchain architecture is a sophisticated blend of efficiency and security, tailored to optimize user experience while maintaining core blockchain principles. The structure is a novel approach, adapting to the constraints of Bitcoin and Ethereum fees through a semi-decentralized model. It comprises three distinct yet interconnected layers
## Immutability Layer
Anchored by an immutable database, this foundational layer ensures the integrity of user operations. Each transaction not only carries the user's signature, validating their consent, but also references the hash of the preceding transaction, thereby preserving chronological consistency. For enhanced transparency and external verification, a Zero-Knowledge (ZK) proof of the database's state is periodically (every 8 hours) transmitted to the Ethereum network, leveraging its robust security.
## Validation Layer
Functioning with rigorous scrutiny, this layer employs validators that continually monitor the blockchain for critical events such as withdrawal requests and trade executions. The validators' primary role is to verify the legitimacy and accuracy of these actions, with a particular focus on the users' balance and transaction history. Withdrawal requests undergo stringent checks; if discrepancies are identified or balances are insufficient, requests are automatically denied, thus safeguarding against unauthorized transactions.
## Executive Oversight Layer
This high-level security measure is engaged for substantial transactions, specifically those exceeding a set threshold (e.g., $1 million). Such transactions require additional authentication in the form of signatures from Befi's C-level executives, adding a human element to the automated validation process. This layer acts as a failsafe, ensuring that high-value transactions receive an extra layer of scrutiny.
By strategically compromising on decentralization, akin to the BNB chain model, Befi's architecture achieves a balance between decentralization and operational efficiency. This design choice, tailored specifically for financial applications, provides a user-friendly, cost-effective, and secure platform.
# Security Framework
#### Secure Trading
Our platform ensures the security of every trade by recording them on a local blockchain. This process guarantees that all transactions remain tamper-proof and secure against any unauthorized alterations or changes.
#### Withdrawal Process
Withdrawals undergo a stringent approval process by four validators, ensuring that each transaction's history is thoroughly verified. Only after these validators provide their validated signatures is a withdrawal approved, maintaining the highest standards of security and authenticity.
#### Proactive Hack Prevention
Our vigilant validators continuously monitor the system to prevent and swiftly address any potential hacking attempts. Additionally, the use of Multisig contracts for withdrawals adds an extra layer of security, requiring multiple authorized signatures to authorize a withdrawal, further fortifying our platform against any security threats.
# Multichain Architecture
Your Gateway to Multichain BRC20 Trading
Our platform simplifies navigating the diverse world of blockchains. Imagine effortlessly managing and trading across various chains like Ethereum, Binance, Solana, and the BRC20 ecosystem, all from a single, user-friendly interface.
At BeFi Labs, we've streamlined the process. No more jumping between multiple interfaces or struggling to keep track of assets scattered across different chains. With us, you can easily consolidate and manage your assets, making informed decisions and executing trades swiftly, all in one centralized platform.
Our goal is to provide you with a seamless experience, allowing you to access, trade, and monitor your assets across different blockchains effortlessly. So, whether you're a seasoned trader or just starting, BeFi Labs is your go-to platform for simplified, efficient, and secure multichain trading.
# The $BeFi Token
Fueling the $BeFi Ecosystem
**BeFi Reactor:** The BeFi Reactor is where the true power of the BeFi ecosystem lies. By staking your $BeFi tokens in the Reactor, you unlock an array of benefits within the BTCfi space. From enjoying low-to-zero trading fees, gaining early access to innovative projects, to participating in exclusive token airdrops—staking $BeFi tokens ensures you are at the forefront of Bitcoin's evolving financial landscape.
### Token Metrics:
Total Supply: 210,000,000
###
Seed Round: 10%
Private Round: 19%
IDO: 6%
LBP: 10%
Team: 10%
Ecosystem Growth: 5%
Marketing: 15%
Liquidity: 25%
{% hint style="info" %}
**24.5M Circulating Supply | 50.2M Liquidity**
{% endhint %}
## **Vesting schedule**
| | |
| ---------------- | -------------------------------------------------- |
| Seed | 7% TGE, then 2 months cliff, then 12 months linear |
| Private | 12% TGE, then 1 month cliff, then 10 months linear |
| IDO | 15% TGE, then 1 month cliff, then 8 months linear |
| LBP | 100% TGE |
| Team | 12 months cliff, then 18 months linear |
| Ecosystem | 2 months cliff, then 72 months linear |
| Marketing | 2 months cliff, then 72 months linear |
| Liquidity and MM | 50% TGE, then 12 months |
# Community
Join our thriving community as it rapidly expands. We welcome you to be a part of it!
#### **Social Networks:**
X:
TG Official:
TG Ann:
Discord: [https://discord.com/invite/asvrdMp9e8 ]()
#### **Community Tasks Campaigns:**
**Zealy**:
**Taskon**:
**Questn**:
**Galaxe**:
