Bamk - A Stablecoin in Bitcoin on-chain through Runes protocol

[Wind_FURY]

Bamk.fi protocol is the issuer of the Nakamoto Dollar, NUSD, a synthetic dollar on Bitcoin L1.

- In phase 1, NUSD is backed 1:1 with USDe, and holding NUSD accrues BAMK every block
- In phase 2, NUSD will be fully-backed by a delta-neutral Bitcoin position earning a native yield, the 'Bitcoin bond'

NUSD is circulating on BRC20-5byte and the Runes protocol, with plans to issue on all viable protocols on Bitcoin L1.

https://bamkfi.gitbook.io/bamkfi-docs

I found this project, and decided to post it here for everyone to discuss - How it works, discuss the technical details, strengths, weaknesses, trade-offs, importance, news, and everything else that's needed to be known.

Stablecoins on-chain could be good for Bitcoiners who don't want to go through centralized exchanges/other blockchains to convert their Bitcoins to fiat or stablecoins during times when the market is bearish.

Plus stablecoins have become some sort of "primitive" that's needed in crypto. It's probably now something fundamental.

[examplens]

We don't need stable garbage to further burden the network.

btw. Lighting Labs already successfully tested enabling stablecoins on the Bitcoin blockchain https://bitcointalk.org/index.php?topic=5497591.msg64117539#msg64117539

[ABCbits]

Does anyone still remember USDT on Bitcoin on-chain which use OmniLayer protocol? And aside from what @examplens said, stable coin also exist on Bitcoin sidechain (such as Liquid).

[NotATether]

Does anyone still remember USDT on Bitcoin on-chain which use OmniLayer protocol? And aside from what @examplens said, stable coin also exist on Bitcoin sidechain (such as Liquid).

It's almost like everyone is just making stablecoins nowadays more than anything else. Why all the big interest in them anyway? Nobody would be creating stablecoins if they didn't make a lot of profit.

[Wind_FURY]

We don't need stable garbage to further burden the network.

btw. Lighting Labs already successfully tested enabling stablecoins on the Bitcoin blockchain

https://bitcointalk.org/index.php?topic=5497591.msg64117539#msg64117539

Are you speaking for the whole community?

Technically Bitcoin is permissionless, and what made the protocols/projects like the Lightning Network, Ordinals, and Runes very interesting is because they didn't need anyone's permission to start building. Plus if your concern is that there are those projects that might be "exploiting" Bitcoin and therefore might "break" Bitcoin, then if it breaks, as a decentralized system, it has no reason to exist because it's not anti-fragile. What would be the use of it being decentralized if it's fragile.

Does anyone still remember USDT on Bitcoin on-chain which use OmniLayer protocol? And aside from what @examplens said, stable coin also exist on Bitcoin sidechain (such as Liquid).

It's almost like everyone is just making stablecoins nowadays more than anything else. Why all the big interest in them anyway? Nobody would be creating stablecoins if they didn't make a lot of profit.

Because it has become a core fundamental for users to escape the volatility of cryptocurrencies, or give them the option to convert to something more stable during bearish market conditions.

Stablecoins might be something that would give Runes actual utility instead of mere shitcoinery.

[ABCbits]

Does anyone still remember USDT on Bitcoin on-chain which use OmniLayer protocol? And aside from what @examplens said, stable coin also exist on Bitcoin sidechain (such as Liquid).

It's almost like everyone is just making stablecoins nowadays more than anything else. Why all the big interest in them anyway? Nobody would be creating stablecoins if they didn't make a lot of profit.

Because it has become a core fundamental for users to escape the volatility of cryptocurrencies, or give them the option to convert to something more stable during bearish market conditions.

But surely you know there are so many USD-based stable coin out there.

Stablecoins might be something that would give Runes actual utility instead of mere shitcoinery.

Even when they could just use either OmniLayer and Counterparty (both are protocol on Bitcoin L1) exist since many years ago?

[Wind_FURY]

Does anyone still remember USDT on Bitcoin on-chain which use OmniLayer protocol? And aside from what @examplens said, stable coin also exist on Bitcoin sidechain (such as Liquid).

It's almost like everyone is just making stablecoins nowadays more than anything else. Why all the big interest in them anyway? Nobody would be creating stablecoins if they didn't make a lot of profit.

Because it has become a core fundamental for users to escape the volatility of cryptocurrencies, or give them the option to convert to something more stable during bearish market conditions.

But surely you know there are so many USD-based stable coin out there.

But if done through Runes, it doesn't make the user convert his/her Bitcoin to another coin to use another protocol, or go to a centralized exchange to deposit his/her Bitcoins there.

Stablecoins might be something that would give Runes actual utility instead of mere shitcoinery.

Even when they could just use either OmniLayer and Counterparty (both are protocol on Bitcoin L1) exist since many years ago?

Currently users could also buy a stablecoin through the Runes protocol if they find it useful for them.

¯\_(ツ)_/¯

[Crypto Fireside]

A bitcoin L1 stable or whatever they call it, synthetic...
Buying both BAMK and NUSD here. Thanks OP.

[Wind_FURY]

A bitcoin L1 stable or whatever they call it, synthetic...
Buying both BAMK and NUSD here. Thanks OP.

I'm not actually sure if you're trolling or not, or if you're actually a newbie or not, but the point of this topic is to talk about Bamk as a project that's trying to build a stablecoin protocol through Runes because I think it's a better use case for Runes than the mere shitcoinery that's currently done on-chain. I'm not here to tell you what shitcoin to buy with your Bitcoins.

[Crypto Fireside]

I was being tongue in cheek but I looked at it and I like the project enough said from me, carry on.

[examplens]

Are you speaking for the whole community?

I'm pretty sure the Bitcoin (not meme or altcoin) community shares the view of not wanting spam on the Bitcoin blockchain.

But if done through Runes, it doesn't make the user convert his/her Bitcoin to another coin to use another protocol, or go to a centralized exchange to deposit his/her Bitcoins there.

this will be another centralized stable coin, then what is the advantage compared to a centralized exchange?
I guess the low fee of the transaction will be an advantage.

[Wind_FURY]

Are you speaking for the whole community?

I'm pretty sure the Bitcoin (not meme or altcoin) community shares the view of not wanting spam on the Bitcoin blockchain.

Simply ignore it. The best it can do to you as a user is to be annoying in the fee market. Plus if there's something in the protocol that could be "exploited", then a good developer SHOULD "exploit" it, and experiment what it could do with it. Bitcoin is anti-fragile, and if someone discovers something which will make it NOT anti-fragile, then there's no reason for it to exist.

¯\_(ツ)_/¯

It will probably continue to exist, but it will be a scam.

[ABCbits]

But surely you know there are so many USD-based stable coin out there.

But if done through Runes, it doesn't make the user convert his/her Bitcoin to another coin to use another protocol, or go to a centralized exchange to deposit his/her Bitcoins there.

Stablecoin on Bitcoin sidechain or LN also doesn't make user convert their Bitcoin to altcoin. https://bamkfi.gitbook.io/bamkfi-docs/how-tos/buynusd says you can buy NUSD on both centralized and decentralized coin.

[Wind_FURY]

But surely you know there are so many USD-based stable coin out there.

But if done through Runes, it doesn't make the user convert his/her Bitcoin to another coin to use another protocol, or go to a centralized exchange to deposit his/her Bitcoins there.

Stablecoin on Bitcoin sidechain or LN also doesn't make user convert their Bitcoin to altcoin. https://bamkfi.gitbook.io/bamkfi-docs/how-tos/buynusd says you can buy NUSD on both centralized and decentralized coin.

👍

OK, then those stablecoins in the Bitcoin sidechain, I assume it's BlockStream's Liquid federated sidechain, and LN will give added use cases for those protocols. WHICH is one of the actual points of the topic. It will also give a serious use case for the Runes protocol, not mere shitcoinery on-chain.