🪙Bitcoin-Ethereum index

Launching soon!

Introduction

The Bitcoin-Ethereum Index is designed to track the dynamic performance of the two leading cryptocurrencies: Bitcoin and Ethereum.

With a strategic asset allocation of Bitcoin and Ethereum, this index provides exposure to the unparalleled growth potential of both cryptocurrencies directly from Atlas. In addition, the index will unlocks an additional stream of revenue by tapping into liquid staking derivatives on Ethereum.

With Bitcoin-EthereumVSIdle Holding

Benefit from weekly yield in stables from ETH staking rewards.

Yield/ Dividends

Miss out on a near risk-free yield from ETH real yield.

One yield-bearing token that captures the upside of both assets.

Diversification

Limited exposure to a specific asset.

Automated strategy that manages asset and claim rewards on your behalf.

Convenience

Bear the burden of interacting with multiple chains and the cost of high transaction fees.

Portfolio allocation

The $BETH Index will only include Bitcoin and Ethereum in its portfolio and have the following allocation:

AssetCategoryPortfolio Allocation

Bitcoin - $BTC

The 1st digital asset created

20%

Ethereum - $ETH

The 1st Smart-Contract layer

80%

Technical architecture

I. $BETH shares minting flow

Bitcoin-Ethereum index token, $BETH, is a CW20 token natively issued on the Ki Chain. $BETH is only minted via collateral deposit, and the number of $BETH shares minted represents the depositors ownership from all collateral assets locked with Bitcoin-Ethereum.

Bitcoin - Ethereum currently accepts a single asset as collateral, Axelar $USDC.

II. $BETH token value accrual flow

Bitcoin-Ethereum leverages liquid staking on Ethereum to earn $ETH denominated yield by securing the Ethereum chain while remaining liquid.

On a weekly basis, rewards generated from securing the Ethereum beacon chain are distributed 50:50 in $USDC & $XKI on a weekly basis to $BETH Stakers. It's important to mention that the $XKI rewards are not inflationary but bought back from the market. After bridging $USDC back to the Ki chain, half of the $USDC is swapped to $XKI on Atlas before rewards are distributed to stakers.

What happens to all rewards foregone by un-staked $BETH? The plan is to deploy it to $BETH liquidity pool as Protocol-Owned liquidity. This will increase $BETH's capital efficiency for future DeFi use cases by building deep & sustainable liquidity.

Note:

  • Un-staking $BETH requires a cooling-off period of 7 days, during which users continue to earn yield from their staked $BETH.

  • $XKI rewards distributed to $BETH Stakers are not inflationary but bought back from the market.

III. $BETH fees

Bitcoin Ethereum applies 2 types of fees: - An entry fee: 1% fee on new deposits. - A performance fee: Every time staking rewards are claimed, the protocol takes a 20% fee.

Note: The performance fees only apply to Ethereum staking rewards and do not concern initial collateral deposited by users.

IV. $BETH tokens redemption flow

$BETH shares can be redeemed at any moment by their holders in return for its underlying collateral. All assets held in Bitcoin-Ethereum index are liquid and do not require a cooling-off period, however the protocol batches deposits, withdrawals and rewards distribution on a weekly basis.

Last updated