As a pioneer of cryptocurrency, Bitcoin was not originally designed to support complex token operations, and its application ecosystem is relatively backward compared to more advanced blockchains such as Ethereum. However, with the recent popularity of Bitcoin ecosystem, the exploration of Bitcoin application layer has become more active.
Alex Labs builds a Defi platform based on the Bitcoin L2 Stacks platform. Its business has made significant progress in recent months. It launched the first Bitcoin oracle and supported the indexing and trading of BRC20 tokens, which has led to a significant increase in its TVL and transaction volume data, and it accounts for more than 90% of the TVL on Stacks.
The following is an introduction to Alex Labs' ecological layout in the crypto world.
A brief analysis of Alex Labs’ team and products: The main creator once held an important position at Morgan Stanley and launched a series of Bitcoin DeFi applications
In the process of exploring the Bitcoin DeFi field, Alex Labs' team and products constitute its core competitiveness. The team is led by a number of experienced professionals, including Dr. Chiente Hsu and Rachel Yu.
Dr. Chiente Hsu, co-founder and CEO of Alex Labs, holds a PhD in Philosophy from the University of Vienna, majoring in Econometrics and Quantitative Economics. She has a strong background in fintech and has served as a managing director at Morgan Stanley and Credit Suisse. She is also an active author, scholar, and advocate for women in finance.
Rachel Yu, her other co-founder, holds a bachelor's and master's degree from Peking University. She started her investment banking career at Goldman Sachs Asia and later served as an executive director at J.P. Morgan Asia, with solid experience in the financial industry.
In terms of products, Alex Labs has launched a series of DeFi applications aimed at enriching the Bitcoin ecosystem. These applications cover cross-chain bridges, automated market makers (AMMs), decentralized exchanges (DEXs), token swaps (Swaps), liquidity pledges, mining, and oracles. These products are designed to provide Bitcoin users with more diversified financial services and expand their application scope in the DeFi field.
Alex Labs aims to achieve a seamless integration of Bitcoin and Layer 2 technology through its technology, thereby improving the overall user experience. This integration effort demonstrates Alex Labs' attention to industry trends and its efforts to promote the integration of blockchain technology and financial services.
In summary, Alex Labs, with its professional team and innovative products, is steadily promoting the development of the Bitcoin DeFi ecosystem and contributing to the diversity and maturity of the cryptocurrency market.
From Staking products to DEX applications, here is a look at the Bitcoin DeFi products launched by Alex Labs
In June 2022, Alex Labs launched its first core product, a fixed-rate and fixed-term lending market. The launch of this service marks the introduction of the concept of zero-coupon bonds in the traditional financial market into the Bitcoin ecosystem. This lending method provides participants in the digital currency market with a new financial tool designed to increase the predictability and stability of lending activities.
On the Alex Labs platform, users can lend and borrow digital currencies through a pool of funds. The system allows borrowers to submit collateral to obtain loans with the highest loan-to-value (LTV) ratio. This process involves smart contracts, in which borrowers need to pay interest in tokens in advance when borrowing. This mechanism ensures the fixed interest rate and reduces the impact of market fluctuations on both borrowers and lenders.
Lenders receive so-called yTokens (yield tokens) in the process, which represent the lender's principal and accrued interest. The core feature of yTokens is that they provide a fixed yield rate, allowing lenders to clearly understand their return on investment. At the end of the loan period, lenders can redeem their yTokens through smart contracts, thereby ensuring that they receive the agreed accrued interest on the due date.
In terms of token trading, Alex Labs uses an automated market maker (AMM) approach. The protocol currently supports nearly 20 different Bitcoin trading pairs and will support trading of Stacks inscription STX20.
More importantly, on its decentralized exchange (DEX), Alex Labs has implemented leveraged trading in the testnet environment. This allows users to use leverage when trading, increasing trading flexibility and possible profit margins. Leveraged trading is an advanced trading strategy that can amplify users' trading capital, but it also increases risks.
Alex Labs’ “Alex Orderbook” is an innovative order book system that adopts an on-chain/off-chain hybrid design. In this system, users’ buy and sell commitments are communicated through cryptographically signed messages, which are processed and matched by an off-chain matching engine before being settled on-chain. A significant advantage of this design is that it allows users to quickly create or cancel orders without paying fees, and to confirm these orders immediately without having to wait for confirmation from the underlying blockchain.
Currently, Alex Orderbook supports the trading of BRC20 and SIP10 tokens, with a cumulative trading volume of 56 million US dollars. A highlight of this system is its efficient processing capability, which can match and settle up to 200,000 orders in each Bitcoin block. This efficient matching and settlement mechanism not only provides an instant confirmation experience, but also ensures the security of transactions.
With this advanced technology, Alex Labs' OrderBook/Perpetual DEX has become one of the fastest and most secure products on the market. It not only improves transaction efficiency, but also provides users with a more convenient and secure trading environment, further consolidating Alex Labs' position in the Bitcoin DeFi field.
Detailed analysis of ALEX Labs' blockbuster product system: Bitcoin Oracle and Alex Launchpad
On December 11, 2021, ALEX Labs, together with Domo, BIS, Hiro, UniSat, Xverse and Xlink, jointly developed and released the alpha version of the Bitcoin oracle. This oracle plays a key role in ensuring the integrity of Bitcoin-based BRC20 tokens and other Bitcoin assets in the future. This move is an important supplement to the original Bitcoin blockchain functionality, as the Bitcoin blockchain was not originally designed to handle complex token operations.
The main function of this oracle launched by Alex is to accurately track and verify Bitcoin-based asset transactions. By integrating the functions of smart contracts, this oracle effectively overcomes the limitations of the Bitcoin blockchain in processing complex transactions.
Key features of the Alpha release include:
BRC20 transfer and balance verification: Oracle uses a smart contract-based consensus mechanism to verify the transactions and balances of BRC20 tokens through major participants such as BIS, Hiro, and UniSat. This approach improves the accuracy and reliability of transactions.
Indexer Performance Dashboard: This is an innovative feature that allows users to access real-time data and analytics about the performance of various indexers. This dashboard serves as an important tool for monitoring the health and efficiency of the Bitcoin oracle network, providing transparency and accountability for oracle operations.
Through these features, the Bitcoin Oracle alpha version not only enhances the security and reliability of Bitcoin-based asset transactions, but also opens up new possibilities for the application of the Bitcoin blockchain in the DeFi ecosystem.
Alex Labs offers the "Alex Launchpad" which is a platform for the initial decentralized issuance (IDO) of new project tokens. This platform allows users who hold $ALEX and $atALEX tokens to vote on new projects. Once a project is approved, Launchpad will determine its launch date and fundraising goal.
Participating in the IDO on Launchpad requires the so-called APower, which is a kind of equity obtained by participating in liquidity mining or staking Alex Labs' original token ALEX. APower is actually a symbol of power that determines the user's ability to participate in the IDO of new projects on Launchpad.
Currently, Alex Labs has five different pools, and users can earn not only ALEX tokens but also APower by participating in these pools. The more APower a user holds, the greater the allocation they receive on Launchpad. This means that more APower can increase the user's share in the token allocation of new projects.
Alex Launchpad is designed to incentivize users to participate in the platform’s ecosystem while also providing a reliable launch pad for new projects.
$ALEX token economic model analysis: 64% of tokens are already in circulation on the market, and the remaining 36% become unstable factors
Alex Labs' native token $ALEX plays an important role in its platform. As a prerequisite for participating in Alex Labs platform activities, $ALEX is also the reward medium for users to provide liquidity and stake for the platform.
Regarding the economic model of $ALEX tokens, the total issuance is set at 1 billion. These tokens will be issued starting in September 2022 and are scheduled to be released within 5 years. The distribution mechanism of $ALEX is as follows:
1. 20% is allocated to the Foundation: This portion is used to support the ALEX ecosystem, reward early adopters and fund future development.
2. 50% is reserved for the community: Community members can earn $ALEX by staking $ALEX or participating in liquidity provision.
3. 30% will be allocated to employees, consultants, early investors and the founding team as recognition and reward for their contributions.
Currently, the circulating market value of Alex tokens is US$220 million, of which 64% of the tokens are already circulating in the market.
Such a token economic model not only provides financial support for the long-term development of Alex Labs, but also encourages active participation of the community, helping to build a healthy and active ecosystem.
The financial ecosystem on the Bitcoin chain has great prospects, and we look forward to more innovations to develop its potential
The emergence of ALEX Labs marks a breakthrough moment for Bitcoin DeFi. It opens the door to a variety of DeFi applications, including decentralized exchanges, lending platforms, and liquidity mining. Bitcoin DeFi, which was once a small player in the field, now has the potential to achieve exponential growth and even compete with Ethereum. This shift provides users around the world with democratized access to financial services, bringing them innovative wealth creation and asset management opportunities.
For developers and creators, this shift heralds a golden age of opportunity. The ALEX-based ecosystem offers them tremendous possibilities. Developers now have the tools and resources they need to create groundbreaking DeFi applications on Bitcoin. They can use ALEX's infrastructure and technology to turn their ideas into reality and shape the future of Bitcoin finance.
For investors, the introduction of ALEX enhances its utility as a pillar of Bitcoin finance. ALEX plays a key role in promoting DeFi operations and investments, becoming an integral part of the ecosystem. As new DeFi projects emerge on the platform, investors can expect more diversified investment opportunities.
Overall, the rise of ALEX Labs and its becoming part of Bitcoin’s financial layer represents a transformation in the DeFi world, and hopefully this transformation will bring more convenience to investors.
