FAQs

General

What is a blockchain?

Blockchain is a digital technology that enables the creation of a secure and transparent record of transactions. It consists of a network of computers that work together to validate and record transactions on a shared ledger, known as a blockchain. The ledger is secured using cryptography, and transactions are validated and recorded through a consensus process. Blockchain's decentralized and secure nature makes it a valuable tool for various industries, including finance, supply chain management, and healthcare.

What problem does the blockchain technology solve?

Digital assets, such as music and movies, are susceptible to unauthorized copying and distribution. This has been a major issue for the entertainment industry, as copyrights can be easily violated. However, blockchain technology offers a solution by providing a secure and transparent database for recording and tracking the movement and authenticity of digital assets. With blockchain, every transaction is strictly registered, allowing for easy verification of authenticity. This makes it particularly useful for managing digital currencies, as individual tokens can be easily distinguished and assets can be managed in a decentralized manner.

What is the difference between cryptocurrency and blockchain?

Blockchain technology enables the creation and use of cryptocurrencies. It serves as a secure and transparent platform for managing and tracking such digital currencies. There are several different blockchain networks available, each with its own native cryptocurrency used to pay transaction fees, known as gas. For example, the Polygon blockchain requires the use of MATIC as a gas fee to incentivize participants to contribute to the security and maintenance of the network.

What is Decentralized Finance?

Decentralized finance (DeFi) refers to financial services that are built on blockchain technology and run on smart contracts. DeFi allows for peer-to-peer financial transactions, such as lending, borrowing, and trading, to occur without the need for a central authority. DeFi platforms enable users to earn interest on their savings and engage in other on-chain financial activities in a decentralized manner.

Bank of Chain (BoC)

Which blockchains are compatible with the BoC platform?

BoC is deployed on the Ethereum blockchain.

Which wallets are compatible with BoC?

The recommended wallets are MetaMask or WalletConnect.

Which stablecoins are accepted for deposit on BoC?

BoC receives deposits on USDT, USDC & DAI for USD farming and ETH for ETH farming.

How long does one have to wait to withdraw their deposits?

There is no lock-up period so you can withdraw your assets at anytime you wish.

Why is BoC secure?

BoC strictly prohibits algorithmic stablecoins and unauthorised third-party cross-chain bridges. By integrating Chainlink price feeds, BoC is well-protected against oracle price attacks and external price manipulation will have minimal impact on the protocol. Additionally, BoC is currently undergoing its first audit round by Shellboxes, and the final report will be open-sourced upon completion.

What stablecoins can I deposit and withdraw?

BoC allows users to deposit USDT, USDC and DAI in any combination and amount. When stablecoins are deposited, an equivalent value of USDi is minted as collateral. This collateral will be burned when the users wish to withdraw their assets.

What is USDi? Can it be used for reinvestment or any other purpose?

USDi is a collateral token minted to users when they deposit stablecoins. The returns earned through the BoC protocol will be reflected in the increased amount of USDi in the user's wallet. USDi is USD-pegged and it represents the user’s net USD value within the BoC protocol. However, USDi can only be used as collateral which will be burned upon withdrawal. It could not be used for other financial activities.

When will the BoC token be released?

It is estimated to be launched in January 2023.

How frequent will my balance increase once I hold USDi or ETHi?

The amount of USDi or ETHi in your wallet will increase upon each positive rebase. You can learn more about this in the Rebase section. Rebase is triggered (once) daily and is typically correlated to the number of people minting and burning tokens each day.

Are there fees associated with minting and burning USDi or ETHi?

During the minting or burning process, an exchange rate will be applied to your stablecoins when they are deposited or withdrawn. This exchange rate is determined by Oracle price feeds and may vary. You can find more information about this process in the Mint & Burn rules section. This mechanism is in place to protect the protocol from arbitrage and is not intended to generate profit.

Are there any minimum or maximum deposit requirements?

You can deposit any desired amount, as there are no minimum or maximum deposit limits. However , there may be a lower limit set through the vault API, which is currently set to 0.

How much will I earn?

Each asset has its own market supply and demand, with its own corresponding Annual Percentage Yield (APY), which evolves over time. You can find the average annual rate over the past 30 days to evaluate how the rate has evolved, and you can also find more data on the reserve overview for each asset in the BoC Dashboard.

Glossary and Terminologies

If you are unsure about any specific terms, you can refer to the Definitions site for clarification.