Welcome to the xBTC LIVE AMA with The Gem Hunters. We would like to kindly thank the team for sharing information on their new project with our community.
Great have have you guys back, it's been a few months since we had you here with us and we would like to know how the journey has been for you so far! From a development and community building perspective?
Yeah, It's been a while! Things have been pretty swell. It's been quite interesting seeing this newfound interest in rebase tech, so we really wanted to make sure people are understand how it works and how xBTC can work as a utility.
Yeah it's been a lot of building from the ground up, since we were last on we built our dashboard and mint, launched our first mint incentive program, switched our oracle to Chainlink (who built our oracle for us from the ground up for free, they just loved the idea of our product), and have now had our first few copycats, of many I'm sure!
For community we have really been focused on spread and legitimacy. We have been featured on Forbes, Marketwatch, YahooFinance, and have two podcasts in the pipeline (podcasts that have hundreds of thousands to millions of monthly listeners). This is where our focus is, mainstream traction.
We've gotta say xBTC has delivered and more in a short space of time!
we also had our AMA with Unification and Chainlink, spreading our reach inside the more close knit crypto community
Well youll have to let us know what and when these pod casts are so we can tune in at TGH!
We've been through some turbulent times! Whilst bitcoin was surging - alts as expected took a bit of a hit. How did this affect your rebase mechanism since you're hedging against the entire crypto market?
Good question. As expected, when bitcoin dominance rises, that leaves more opportunity for xBTC to hang out in the contractive state; this means tokens are being pulled from total supply in order to bring spot value up to peg. During that time, our userbase had taken the time to really learn and understand how our xBTC cold be utilized, and (as we continue to see) their loyalty paid off! Of course, we'll continue to see volatility in the markets —but that's to be expected until adoption really sets in over the next few years!
It has been very turbulent. We are still at a very small market cap (especially when compared to other rebase tokens) so the market can still make us go whichever which way. That being said over the past 3 months we have seen our token perform actually as designed, which is a blessing in a way. Looking at our supply and bitcoin dominance they are oppositely correlated. So in the future when we see bitcoin dominance fall we will see if our token correlates correctly. The whole idea is that as bitcoin dominance falls people will want to bet on that, we are the only way to trade it on the open market, we are also a novel way to trade it. We are a synthetic decentralized price on bitcoin dominance which is better than traditional options contracts because:
1. We are a first of our kind DOMINANCE hedge, like hedging Microsoft against the Nasdaq outpacing it, this type of hedge has never existed, your example isn’t a dominance hedge.
2. No strike price or expiration date
3. No margin or margin call
4. Tokenized and easily tradable as an ERC 20
5. Rebasing allows you to benefit while holding (sell extra supply that comes in), this is mostly a psychological benefit
6. Decentralized and agnostic (available anywhere and everywhere)
7. Immutable and transparent
Here is the chart showing our supply vs bitcoin dominance and you can see a strong connection (correlation is not causation, obviously, but it did what we thought)
Great stuff. There's really no comparison as far as I can tell with the projects we've seen from a rebase perspective 👏
Yeah I think a lot of rebase tokens have rebased to prices and if you want to access price action...buy the underlying asset. We are still the only rebase token that has a completely novel number: bitcoin dominance. Also a number that is unique to crypto and a native metric that doesn't exist elsewhere. We have copies but we are still one of a kind and head and shoulders above them in my estimation.
Youve answered a lot of this, but massive hype around rebases products seemed to die down, but in the last few weeks we've seen a huge rush back into these of projects. Rebase tokens being top gainers, ath rebases and trending all over twitter. How do you personally explain the 'comback' of rebase tokens? Has it had much effect on xBTC?
Definitely. I think a major factor in the return of rebase hype has a lot to do with the concept still being so fresh. If users are actually taking the time to understand how an elastic supply mechanism works, they will also come to see that the possibilities are endless. It just didn't quite make sense that it should die down in the first place. Rebasing is quite revolutionary, and these early variations are still really only the beginning. It's a fascinating concept, and I believe it'll likely stick around for years to come. Additionally, Crypto Twitter love communicating big gainers, and with the compounding effect in positive rebase territory, elastic supply tokens are clearly going to be making those lists, more often than not!
Completely agree that new concepts can be misunderstood and people take time to fully understand and adjust to ideas, i do think the initial hype might have been too much, kinda reminds me of Bitcoin in 2017 and then the aftermath and now its regaining the initiative!
I'm happy to name names here. Base protocol came out and launched through duckdao which is connected to Ivan and Boxmining. I think this really launched them into the limelight and brought a lot of attention to the space. We were excited to see them added to the space and excited to see a token peg to a novel protocol, something we were the first to do back in September. They basically took bitcoin into their equation and did the entire market cap rather than altcoin market cap vs bitcoin market cap. They also changed the rebasing formula a change we don't think we would ever make but it's great to see differentiation in the space. After them you saw a lot of people make copies. It is likely a lot of these project Base protocol included were things we had considered first pegging to (there's some docs out there of me mentioning pegging to total crypto market cap, though we wanted to make it a negatively descending peg if we made it, it just wasn't interesting enough to us). We also saw a defi basket peg coin come out (I believe) another thought of ours, we went through all these iterations a little on that here: https://youtu.be/zZn8PRNaJ2k?t=4347 We did then, and we still think, Bitcoin dominance is the most interesting thing you can peg to in crypto. It is the most novel, unique, and important number to crypto that you can't access.
Rebase is now the new darling on the block (again, back in July it got hot too). We just saw two rebase token rug pulls by two projects, so be weary hear. We are a non-anon team with multiple partnerships in the space and video amas out there. We are going for longevity and dependability, every time a new wave of interest comes we will be here and people will find us (people found us this cycle). We want to keep being the highest quality, most innovative, and most trusted one for them to access, we think that's true today and will continue to be true. Long story short we saw the stable of novel rebase tokens grow and some of them had some strong marketing backing. We welcome these new guys and the space needs to grow to mature. We're excited at the future!
We and our community have some experience and outlook that many investors have no actual idea what they are buying, when they are getting into a token with a rebase function. After the first bigger rebase they're panicking cause the price is adjusting. Do you see a maturity and learning process happening amongst investors in the space?
Slightly, yes. However it still has a very long way to go, long story short you should just be looking at market cap, you have to take into account supply and price. However A LOT of people just want to watch price and only understand price. Just like when bitcoin first came out people didn't understand digital money. ETH came out and people didn't understand smart contracts. There is nothing different here. AMPL is the simplest form of rebasing (rebasing to a stable $1 peg) and people still don't understand it, and they've been out for a year and have been to 600 million in market cap. So it will still be a ways before people understand a rebasing token like us. We do think we provide an important and large evolution from AMPL though, and that could be big: https://medium.com/@Social.Capital/xbtc-an-evolution-of-ampleforth-584784d69537
I'm going to keep this one short and concise, as there was a video that has worked time and time again to explain rebase: https://www.youtube.com/watch?v=e-8yjmsshFg
I highly suggest anyone who doesn't fully feel confident with their understand if the rebase mechanism to watch this video! The title is regards to Ampleforth, but the concept is universal!
There are definitely more people that understand tokens though, one interesting thing is that people blame rebasing for sharp losses or think rebasing tokens are any different than other traditional ERC 20s, other ERC 20 do 100x in week and go down 90% in a couple days. There will be volatility in all of crypto especially at early times and low market caps, would you have held ETH when it dropped from $2.80 to 60 cents in one day in 2015 (an 80% drop)? If you said no, then you are either putting too much money into your crypto or have the wrong mindset. This is the space we are in and some people still don't have that zoomed out mindset.
You've already given an good link to informative material there but do you guys have some more which you can share? Maybe something more advanced to really get a grasp of the rebase mechism?
As far as I know, that video should really get into the meat of it. Our whitepaper is another good source for the specifics on our dampener and formulation, which can be found here! https://xbtc.fi/whitepaper.pdf
Again, I know people don't like naming names but we are definitely not in a zero sum mindset and love community working together. So with that, the OG is definitely the OG AMPL's redbook does a good job of explaining (still likely the best): https://www.ampleforth.org/redbook/
also Binance launched their Rebase education https://academy.binance.com/en/articles/elastic-supply-tokens-explained Binance putting that out was just this week, so you can see this is just the beginning of rebasing.
Binance is on board, that's huge!
Obviously we are still quite far away from a less volatile rebase scenario because many investors don't see them as intended. When do you see a full maturity of the rebase model happening and what would have to happen in order to speed it up?
This is a difficult one to predict, but I imagine as more and more of the community become educated on the concept, it should spread. Like anything, time and evidence are really going to provide the validation. What we can do, both as creators and retailers, is continue to build and educate. As more projects emerge using this sort of technology, I'm sure we'll start to see a form of stability establish itself!
I think we have someone who is at scale (AMPL) and at 200 million that is what will most show maturity and create understanding. As they continue to be large and stabilize it will be huge for the space. They are also doing some strong things around liquidity pools and being used in defi (also check out dollar shares who are doing some novel rebase mechanisms around liquidity pools and defi). The longer AMPL is in the top 100 (or top 50) the more people will come and look at, and then understand, rebasing. The more they will know there is really something important happening here. Then when they see the essential nature of an open market decentralized spot price we hope they see xBTC as the most useful and interesting open market decentralized spot price. AMPL gives you a spot price on a dollar, we give you a spot price on bitcoin dominance.
To speed this process up it would be great if AMPL got into the top ten and stayed there for a couple months, unfortunately money is about the only thing that talks in this space right now (technology and innovation don't matter as much as we wish it did), so if they can do that it will force people to take a second look, dig deeper, and understand rebasing. Again we want this space to grow and love all rebasing tokens and ideas, we pushed out the space in a new direction and welcome anyone to pile in with their ideas, the wider the space the better.
What are your future plans and the vision for xBTC beyond the hype cycles of rebase tokens?
Continue to build out a massive encyclopedia of appearances, media outlets, and resources for people who find us. If you suddenly get into rebasing tokens or want to trade bitcoin dominance, we want to make sure you can find us and that you can quickly see our longevity and dependability. People don't throw millions of dollars into new tokens easily even with the heights Base reached it was off of Duckdao and influencers, there weren't institutions or grayscale buying into that. We want large and trusted institutions to see us as a place they can put money to really hit scale. It took AMPL 8 months to break to 600 million and they had some of the biggest backers (coinbase CEO included). So we know this will take time and we need to keep being consistent. So we want to continue being featured in place like Forbes and next to people like Chainlink. Keep building keep spreading. We don't want short term hype cycles and all the shillers to push us, though that will happen at times and we welcome it. Chainlink is actually a perfect example for us they have the Link marines that are fully separate from Chainlink Core team, the core team stays focused on building and dependability, the Link Marines run the streets. We aim for this dichotomy and look to really build out trust over the long term, also spread to mainstream outlets and users as much as possible.