Protocol Components
Incorporated Blockchain
BoC protocol is designed to be compatible with Ethereum Virtual Machine (EVM). In more simple terms, BoC is connected with the Ethereum blockchain.
The blockchain possesses the following qualities:
Permissionless.
Autonomous execution by smart contracts.
24/7 service without downtime for Bitcoin network (13years) and Ethereum network (8 years).
Processing over 2M transactions worth hundreds of billion dollars per day accurately.
Distributed and immutable ledger can be presented in any favourable format.
Ethereum
Ethereum is a decentralized open-source blockchain platform with smart contract functions, which native cryptocurrency is ETH. In December 2021, Ethereum became the second most valuable cryptocurrency by market capitalization after Bitcoin, and also became the most widely used blockchain.
The concept of Ethereum was first proposed between 2013 and 2014 by the programmer Vitalik Buterin after being inspired by Bitcoin as "the next generation of cryptocurrency and decentralized application platform". Ethereum's development started through the ICO crowdfunding in 2014.
Ethereum is also known as the "second-generation blockchain platform", second only to Bitcoin.
Incorporated Stablecoins
To avoid psychological fear caused by the fluctuations of digital currency value and the losses of market-making funds, BoC has selected only stable currency assets(stablecoins), and is only limited to those with full collateral provided by fiat currency or by stablecoins.
Stablecoins need to meet the following conditions:
The corresponding issuers should pass the due diligence check of BoC.
Algorithmic stablecoins are strictly prohibited.
Insurance is available.
Stablecoin quotes must be based on ChainLink data.
Market capital has to be greater than $500 million / 200,000 ETH.
The selected strategic stablecoins are: DAI, USDC, USDT, BUSD, TUSD, LUSD, GUSD, SUSD.
DAI
DAI is a stablecoin cryptocurrency designed to keep its value as close to a dollar as possible through an automated system of smart contracts on the Ethereum blockchain.
USDC
USD Coin (USDC) is a digital stablecoin pegged to the U.S. dollar that operates on the Ethereum, Stellar, Algorand, Hedera Hashgraph, and Solana blockchains. As of 31st August 2022, USDC in circulation is $52.2 billion.
USDT
USDT, also known as USDT, is a controversial cryptocurrency issued by Tether Limited, which is controlled by the owners of Bitfinex. USDT is a stable currency. As being launched in 2014, USDT is a blockchain-based platform that digitally facilitates the use of fiat currencies.
BUSD
Binance USD (BUSD) is a new stablecoin launched by Binance and Paxos, which is pegged 1:1 to the US dollar.
TUSD
TrueUSD (TUSD) is a stablecoin issued by Trusttoken, which is pegged 1:1 to the US dollar.
LUSD
LUSD is a stablecoin issued by the Liquidity Protocol, which is pegged 1:1 to the US dollar.
GUSD
Gemini Dollar (GUSD) is a stablecoin issued by Gemini, which is pegged 1:1 to the US dollar.
SUSD
SUSD is a synthetic U.S. dollar token issued by the Synthetix protocol, which is pegged 1:1 to the U.S. dollar.
The supported tokens are dynamic. The new supported tokens can be added or old ones could be removed through the interface after the protocol has been deployed.
Incorporated Third-Party Protocols
How are protocols selected?
The protocols selected should meet the following conditions:
Do not require deposit or withdrawal fees.
No lock-up period, hence funds can be withdrawn rapidly.
No limitations on the amount of funds for an investor.
All protocols should be audited to avoid potential losses caused by code vulnerabilities to the greatest extend.
The aggregated financial management protocol should count on a long-term safety operation record and obtain the communities' permission via voting. Therefore, the risks caused by nested tokens and LEGO combinations can be circumvented.
Do not use protocols that obtain/magnify capital returns by providing unsecure services or leverage.
The first accessed DEX and lending protocol should be the preferred first-line protocols on every blockchain and also count with reliable safety operation records.
The protocol should allocate the funds intelligently, which always obeys two rules: maximizing yields and decentralizing capital risks.
The following are the selected protocols at present:
In Ethereum: Balancer, Convex, DODO, UniswapV2, UniswapV3, etc.
In Polygon: Aave, Balancer, Curve, DODO, etc.
AAVE
AAVE is an open-source decentralized lending protocol that provides users with deposit and lending services. The deposit and loan interest rates of users on both sides of the borrower and the lenders are calculated by algorithms based on the platform's borrowing volume and deposit volume. The platform uses Chainlink's oracle to ensure fairness of the collateral price.
Aura
Aura Finance is a protocol built on top of the Balancer system to provide maximum incentives to Balancer liquidity providers and BAL stakers (into veBAL) through social aggregation of BAL deposits and Aura’s native token.
Balancer
Balancer is a decentralized exchange deployed on Ethereum. Balancer uses automatic market makers to achieve the function of decentralized transactions. Transaction users can choose trading pairs to trade and pay transaction fees, while liquidity providers can get a share of the fees.
Convex
Convex is a one-stop platform for CRV staking and liquidity mining on Ethereum that is dedicated to ease the use of Curve. As a yield aggregator on the Ethereum chain, Convex aims to use the CVX token to simplify the process of locking and staking Curve and CRV through an easy-to-use interface, and to improve the compensation of CRV token holders and liquidity providers. This facilitates the development of the CRV ecosystem.
Curve
Curve is a decentralized exchange deployed on Ethereum. Curve is designed for trading between stablecoins with low fees and slippage through an Automated Market Maker(AMM) protocol. It is a decentralized liquidity aggregator. Anyone can add their own assets into the liquidity pool to earn market-making benefits.
dForce
dForce is committed to building an integrated and interoperable matrix of open financial protocols and currency protocols, including lending protocols (global liquidity pools, interest-earning markets), asset-based protocols (multi-currency stablecoins, synthetic assets, etc.), liquidity aggregators, Automatic Market Makers, etc.
DODO
DODO is a decentralized trading platform that uses an original Proactive Market Maker (PMM) algorithm to provide efficient on-chain liquidity for Web3 assets, allowing everyone to issue and trade Web3 assets easily. DODO not only provides liquidity but also aggregates the liquidity of other exchanges. This allows DODO to offer the best prices on the entire network.
Lido
Lido is the leading liquid staking solution - providing a simple and secure way to earn interest on your digital assets. By staking with Lido your assets remain liquid and can be used across a range of DeFi applications, earning extra yield.
RocketPool
RocketPool is a first-of-its-kind ETH2.0 Proof of Stake Protocol, designed to be community-owned, decentralized, trustworthy, and compatible with staking in Ethereum 2.0. It was first conceived in late 2016 and has since had over 5 successful public betas over the life span of ETH2.0 development.
Uniswap
Uniswap protocol is a peer-to-peer system designed for exchanging cryptocurrencies (ERC-20 Tokens) on the Ethereum blockchain. The protocol is implemented as a set of persistent, non-upgradable smart contracts; designed to prioritize censorship resistance, security, and self-custody, and to function without any trusted intermediaries who may selectively restrict access.
There are currently three versions of the Uniswap protocol. UniswapV1 and UniswapV2 are open-source and licensed under GPL. UniswapV3 is open-source with slight modifications. Each version of Uniswap, once deployed, will function in perpetuity, with 100% uptime, provided the continued existence of the Ethereum blockchain.
YearnV2
Yearn Finance is DeFi’s premier yield aggregator. Giving individuals, DAOs, and other protocols a way to deposit digital assets and receive yield. The protocol is maintained by various independent developers and is governed by YFI holders.
Incorporated Oracle
Oracles are data sources that connect Ethereum to off-chain, real-world information in order for users to be able to query data in smart contracts. It allows certain smart contracts to respond to the uncertain external world, and it is the only way for smart contracts to interact with the outside world. It is also the interface between blockchain and the real world.
Chainlink
Chainlink is a decentralized oracle network that bridges the gap between smart contracts (like those on Ethereum) and their external data. The blockchain itself cannot connect to external applications in a trusted manner. Chainlink is not a single network of oracles, but an ecosystem of many decentralized oracle networks running in parallel, whose token is LINK.
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