{"schema":"BUIDL","d":{"id":14353,"members":[],"pictures":["https://cdn.dorahacks.io/static/files/190ea2f074d38e52e7754de490f91bf1.png"],"roundProjects":[],"hackathonProjects":[{"id":15463,"hackathon":{"id":429,"tabSet":[{"id":748,"name":"Developer Toolkit","slug":"developer-toolkit","description":"## Developer Resources\n\n**General Resources**\n\n- [Core DAO GitHub](https://github.com/coredao-org): the official Core GitHub, including our blockchain codebase and more.\n\n- [Official Documentation](https://docs.coredao.org/): the official Core developer documentation.\n\n- [API Reference](https://docs.coredao.org/docs/api): the Core Scan Open API\n\n- [Whitepaper](https://whitepaper.coredao.org/): the official Core Whitepaper\n\n**Core Testnet Resources**\n\n- [Block Explorer](https://scan.test.btcs.network/): search and review transactions, accounts, blocks, and more.\n\n- [RPC Endpoints](https://chainlist.org/chain/1115): RPC endpoints for Core Testnet's RPC service.\n\n- [Core Faucet](https://scan.test.btcs.network/faucet): fund your testnet address with tCORE.\n\n- [Core Staking](https://stake.test.btcs.network/): tCORE staking website.\n\n- [Gnosis Safe](https://safe.test.btcs.network/welcome): secure multi-sig management of digital assets.\n\n**Core Mainnet Resources**\n\n- [Block Explorer](https://scan.coredao.org/): search and review transactions, accounts, blocks, and more.\n\n- [RPC Endpoints](https://chainlist.org/chain/1116): RPC endpoints for Core Mainnet's RPC service.\n\n- [Core Bridge](https://bridge.coredao.org/): official bridge for the Core ecosystem (more details in Core Bridge Resources)\n\n- [Core Staking](https://stake.coredao.org/): official CORE staking website.\n\n- [Web3 Provider](https://cloud.infstones.com/login): scalable API infrastructure provided by InfStones.\n\n- [Core Scan Contract Verifier](https://scan.coredao.org/verifyContract): web tool for contract verification (guide here).\n\n- [Gnosis Safe](https://safe.coredao.org/welcome): secure multi-sig management of digital assets.\n\n- [wCORE](https://scan.coredao.org/address/0x191e94fa59739e188dce837f7f6978d84727ad01): official wrapped CORE token smart contract.\n\n**Communication Channels**\n\nTelegram: https://t.me/CoreDAOTelegram \n\nDiscord: https://discord.com/invite/coredaoofficial \n\nTwitter: https://twitter.com/Coredao_Org \n\nBlog: https://medium.com/@core_dao or https://coredao.org/explore/blog"},{"id":749,"name":"Core Chain Tracks","slug":"core-chain-tracks","description":"# Welcome to the Core BTCfi Summer Hackathon 2024!\n\nDive into innovation and help shape the future of Core Chain and Bitcoin enabled blockchain technology. Be a part of our journey!\n\nCore Chain is the revolutionary network that enables developers to create groundbreaking decentralized applications (Dapps) on top of Bitcoin, via Core's novel consensus mechanism, Sathoshi Plus Consensus, which combines Delegated Proof of Work (DPoW), Delegated Proof of Stake (DPoS), and Non-custodial Bitcoin Staking. This event invites you to tackle critical challenges across various domains, including GameFi, SocialFi, infrastructure improvements, and DeFi solutions.\n\n# GameFi Applications on Core Track\n**Focus**: Develop games that offer engaging mechanics and long-term player engagement within the CoreDAO ecosystem.\n\n**Goal**: To create innovative GameFi applications that enhance the gaming experience through player interaction, ownership, and rewards. Implement GameFi elements like NFTs or token-based economies, ensuring the game is accessible, engaging, and promotes sustainable practices.\n\n**Challenge Description**: We are seeking proposals for GameFi applications on Core Chain that provide immersive and rewarding gaming experiences. The applications should incorporate blockchain elements such as NFTs and token-based economies to enhance player interaction and ownership. The games should be designed to ensure long-term player engagement and sustainability, making them both fun and rewarding. Additionally, the games should leverage Core Chain’s capabilities to offer high performance and low fees, thereby creating a seamless gaming experience.\n\n# Decentralized Social Network Track\n**Focus**: Innovate within the SocialFi space by leveraging Core Chain to create decentralized applications (dApps) that integrate social networking and community engagement.\n\n**Goal**: To transform social engagement into a rewarding and fun activity, empowering users through decentralized platforms that enhance digital interactions. Incorporate features that reward engagement and participation, focusing on humor, internet culture, creator economy, and memes.\n\n**Challenge Description**: We are looking for proposals that leverage Core Chain to build decentralized social networks that enhance user engagement and interaction. The applications should incorporate reward systems for participation and engagement, with a particular focus on aspects like humor, internet culture, creator economy, and memes. The platforms should provide robust governance mechanisms and incentivize both content creators and consumers, creating a vibrant and engaged community. The service should also utilize Core Chain’s features to ensure scalability, low fees, and high performance.\n\n# Innovative Solutions for Infrastructure Improvements Track\n**Focus**: Develop infrastructure that simplifies token launches and promotes security, fairness, and user engagement.\n\n**Goal**: To set new standards for efficiency and fairness in the DeFi space by enhancing token launch processes and security measures. Simplify the token launch process with a few-click deployment, ensuring tokens are instantly tradable without initial liquidity seeding.\n\n**Challenge Description**: We are seeking innovative solutions to improve the infrastructure for token launches on Core Chain. Proposals should focus on simplifying the token launch process, making it easy and secure for users to deploy new tokens with minimal effort. The solutions should enhance security and fairness, ensuring tokens are tradable immediately without needing initial liquidity. These improvements should leverage Core Chain’s strengths in high performance and low transaction fees to provide a seamless and efficient token launch experience.\n\n# Intent-Centric DeFi Solutions Track\n**Focus**: Develop decentralized applications (dApps) that prioritize user goals or \"intents\" within the BTCFi ecosystem.\n\n**Goal**: To simplify and optimize user interactions with BTC in the Core ecosystem, ensuring efficient and secure fulfillment of user intents. Implement sophisticated mechanisms to ensure intents are fulfilled efficiently and securely.\n\n**Challenge Description**: We are looking for proposals for DeFi solutions that focus on fulfilling user intents within the Core ecosystem. These applications should simplify user interactions with BTC, providing a streamlined and secure process for achieving their financial goals. The solutions should incorporate advanced mechanisms to ensure that user intents are met efficiently and securely, leveraging Core Chain’s capabilities for high performance and low fees. These applications should aim to make DeFi more intuitive and accessible for users.\n\n# Core Chain DeFi Bot Integration Track\n**Focus**: Create bots that operate natively within Telegram for Core Chain's DeFi products, enhancing user experience and engagement.\n\n**Goal**: To streamline DeFi interactions within Telegram, providing users with seamless and secure access to market updates, order management, and financial insights. Integrate AI-driven features like sentiment evaluation and forecasting models, ensuring stringent security protocols.\n\n**Challenge Description**: We are seeking proposals for DeFi bots that integrate with Telegram to enhance user experience and engagement with Core Chain’s DeFi products. These bots should provide seamless access to market updates, order management, and financial insights directly within Telegram. The solutions should incorporate AI-driven features such as sentiment evaluation and forecasting models, ensuring high levels of security and reliability. The goal is to make DeFi interactions more accessible and user-friendly through the use of familiar messaging platforms.\n\n# CoreBTC Innovations Track\nFocus: Projects that leverage coreBTC to create innovative dApps or services.\n\n**Goal**: To highlight coreBTC's utility and potential in unlocking BTC utilities.\n\n**Challenge Description**: We are looking for innovative projects that utilize coreBTC to create unique dApps or services on Core Chain. These projects should demonstrate the potential of coreBTC in unlocking new utilities and use cases for Bitcoin. The solutions should leverage Core Chain’s capabilities to provide high performance, low fees, and cross-chain compatibility, showcasing the versatility and value of coreBTC in the blockchain ecosystem.\n\n# BTCfi Ecosystem Expansion Track\n**Focus**: Development of DeFi applications that utilize coreBTC, CORE, or both to enhance the BTCfi ecosystem.\n\n**Goal**: To enrich the BTCfi ecosystem with diverse financial services, increasing the value and utility of coreBTC and CORE in DeFi.\n\n**Challenge Description**: We are seeking proposals for DeFi applications that expand and enhance the BTCfi ecosystem on Core Chain. These applications should utilize coreBTC, CORE, or a combination of both to offer diverse financial services. The solutions should aim to increase the value and utility of coreBTC and CORE within the DeFi space, leveraging Core Chain’s strengths in performance, security, and cross-chain compatibility. The goal is to create a more robust and versatile BTCfi ecosystem.\n\n# CORE Utility and Adoption Track\n**Focus**: Projects that innovate in the use of CORE for transactions, governance, staking, rewards, or other mechanisms that demonstrate CORE's value beyond just a medium of exchange.\n\n**Goal**: To showcase the versatility of CORE and promote its wider adoption in various blockchain applications.\n\n**Challenge Description**: We are looking for innovative projects that demonstrate the utility and versatility of CORE in the blockchain ecosystem. These projects should explore new use cases for CORE beyond its function as a medium of exchange, including transactions, governance, staking, and rewards. The solutions should highlight the unique features and benefits of CORE, promoting its adoption and integration in various applications. The goal is to showcase CORE’s potential and drive its widespread use in the blockchain space."},{"id":750,"name":"Prize","slug":"prize","description":"# Over $250k in Prizes available!\n\nThe rewards for BTCFi hackathon are massively high, with a prize pool whooping up to $250,000. \n\nWinners are determined by overall scoring, with rankings and rewards allocated based on this comprehensive evaluation, not on individual track performance. The following is a breakdown of rewards\n\nWinner Prize Pool (up to $30,000)\n\n- Top 1 Project Prize - $15,000\n- Top 2 Project Prize - $10,000\n- Top 3 Project Prize - $5,000\n- Core Starter Program (up to $220,000)\n\n# Prize distribution\n\n| Position | Award Description |\n| :------ | :------ |\n | 1st Position | 15k USD Grant, Access to DeFi development resources, Dedicated Workshop on DeFi Development, Feature in BTCfi ecosystem newsletter, Core Starter Program, Priority access to DeFi partnership opportunities, Social Media Highlights.|\n| 2nd Position | 10k USD Grant, Access to DeFi development resources, Dedicated Workshop on DeFi Development, Feature in BTCfi ecosystem newsletter, Core Starter Program, Priority access to DeFi partnership opportunities, Social Media Highlights. |\n| 3rd Position | 5k USD Grant, Access to DeFi development resources, Feature in BTCfi ecosystem newsletter, Core Starter Program, Social Media Highlights. |"},{"id":757,"name":"Submission Guide","slug":"submission","description":"# Getting Started [3-5 MIN]\n\n**1.** **You should submit your BUIDL via [DoraHacks.io](https://dorahacks.io/). Before that, make sure that you already have an account.**\n\nUse the **Sign in/up button** at the upper right corner of the page to access the sign-up options.\n\n

\n\n**Github, crypto wallet** and **email** are supported for creating an account. For BUIDLers, we recommend you to connect the account to your **github** to make more people know what you are building at any time.\n\n*You may be asked to receive a verification code via email. The email may take some time to arrive. No worries! The code will not expire in 10 minutes when you click “send code”.\n\n**2. Before the submission of deadline, please make sure you have added your Github link to the project. You can submit the project first, edit it later before the deadline.**\n\nClick “ Register As Hacker”-“Submit BUIDL”.\n\n

\n\n> **→ If you already have a BUIDL on DoraHacks**\n\nChoose your BUIDL project from **\"Apply with Existing BUIDL\"** and identify the track you want to join.\n\n> **→ If you want to submit a new BUIDL project**\n\nClick **“Create a new BUIDL”** and fill in the form as required. You'll be directed to \"Apply for BTCfi Summer Hackathon\" page after the new BUIDL setup.\n\nFill in the form to offer the information about your project. Note that for demo, demo link and social media, please offer **URLs (with http/https://)**.\n\n

\n\nDon't forget to check \"I agree to the User Agreement\".\n\n

\n\nBack to Application window. Choose your BUIDL project from **\"Apply with Existing BUIDL\"** and identify the track you want to join.\n\nWhen submission succeeds, you'll see this notification.\n\n

\n\n# Project Verification\n\nAfter verification by the hackathon organizer through the manager portal, your project will be displayed in the [BUIDLs gallery](https://dorahacks.io/hackathon/429/buidl).\n\n# Want to make some changes to your BUIDL?\n\nClick [Avatar] -> [Profile] to enter the Account Center, and click the \"Edit\" button on the top right of the BUIDL to update the BUIDL information.\n\n

\n\n
\n\n

"},{"id":767,"name":"Workshop","slug":"workshop","description":"# Opening Ceremony\n\nTime: Jun 10, 1PM UTC\n\n![YouTube](https://www.youtube.com/watch?v=DsuOT84vknM)\n\n- Binance Live: https://www.binance.com/en/live/video?roomId=2202224\n- YouTube: https://youtube.com/live/DsuOT84vknM\n\n# #1 Deep dive into Challenges/Tracks & Dev tools & Submission Guide\n\n![YouTube](https://www.youtube.com/watch?v=tMZdyjRU0EY)\n\n- Binance Live: https://www.binance.com/en/live/video?roomId=2202226\n- YouTube: https://youtube.com/live/tMZdyjRU0EY\n\n# #2 Introduction to Core Chain \nTime: Jun 19, 1PM UTC\n\n![YouTube](https://www.youtube.com/watch?v=nWuJtYg8lWs)\n\n- Binance Live: https://www.binance.com/en/live/video?roomId=2202264\n- YouTube: https://youtube.com/live/nWuJtYg8lWs\n\n# #3 Building Full Stack dApps on Core Chain\nTime: Jun 26, 1PM UTC\n\n![YouTube](https://www.youtube.com/watch?v=FfHpxzfzjCU)\n\n- Binance Live: https://www.binance.com/en/live/video?roomId=2203595\n- YouTube:https://youtube.com/live/FfHpxzfzjCU\n\n# #4 Workshop with Partner Projects 1 (Verichains, Halborn)\nTime: Jul 3, 1PM UTC\n\n![YouTube](https://www.youtube.com/watch?v=eAmuZPzSV0c)\n\n- Binance Live: https://www.binance.com/en/live/video?roomId=2203599\n- YouTube:https://youtube.com/live/eAmuZPzSV0c\n\n# #5 Unlocking Bitcoin Defi - Non Custodial BTC Staking on Core Chain\nTime: Jul 10, 1PM UTC\n\n![YouTube](https://www.youtube.com/watch?v=JF6MbgvEMC0)\n\n- Binance Live: https://www.binance.com/en/live/video?roomId=2206129\n- YouTube:https://youtube.com/live/JF6MbgvEMC0\n\n# #6 Workshop with Partner Projects 2 (NLX, Request and TokenSoft)\nTime: Jul 17, 1PM UTC\n\n![YouTube](https://www.youtube.com/watch?v=d43jbiW0BJY)\n\n- Binance Live: https://www.binance.com/en/live/video?roomId=2208704\n- YouTube: https://youtube.com/live/d43jbiW0BJY"},{"id":947,"name":"Results","slug":"results","description":"# 🎉 BTCfi Summer Hackathon 2024 Results\n\n## The moment has arrived! 🥁 \nAfter 12 weeks and 8 challenge tracks, Core’s BTCfi Summer Hackathon 2024 has wrapped up, showcasing brilliant innovations that drive the Bitcoin economy forward and strengthen the #Core ecosystem. Out of over 290 registrations and 74 initial entries, 10 projects advanced to the final demo round. After thorough evaluations, the top 3 winners have emerged.\n\n## 🏆 And the Top 3 Winners Are...\n\nThe top three contenders have been awarded a total of $30,000 in cash prizes, complemented by rewards from the Core Starter Kit, valued at up to $220,000. This package includes a suite of resources and tools designed to accelerate the growth and success of these innovative projects. Without further delay, here are the top three winners...\n\n![core winners.jpeg](https://cdn.dorahacks.io/static/files/191900e83123eb5e1734e1a4ebb83988.jpeg)\n\n# 🥇 1st Place: Rune Bridge \n**Prize:** $15,000 \n**Hackathon Track:** CoreBTC Innovations \n[BUIDL](https://dorahacks.io/buidl/14486) \n BUIDL link: https://dorahacks.io/buidl/14486\n\nRuneBridge is an innovative, permissionless platform that connects the Bitcoin and Core ecosystems. This bridge enables the effortless transfer of Bitcoin Runes to the Core blockchain, opening up extensive possibilities for decentralized finance (DeFi) and other cutting-edge applications.\n\n# 🥈 2nd Place: OnchainVampireSurvivors \n**Prize:** $10,000 \n**Hackathon Track:** GameFi Applications on Core \n[BUIDL](https://dorahacks.io/buidl/14468) \n BUIDL link: https://dorahacks.io/buidl/14468\n\nOnchainVampireSurvivors is an immersive time survival game infused with roguelite elements and in-game transactions. Set in a relentless world teeming with monsters and devoid of escape routes, players must endure as long as possible until their inevitable demise. Each run allows players to collect gold, which can be used to purchase upgrades and enhance the chances of the next survivor, creating a challenging and continuously evolving gameplay experience.\n\n# 🥉 3rd Place: b14g Network \n**Prize:** $5,000 \n**Hackathon Track:** BTCFi Ecosystem Expansion \n[BUIDL](https://dorahacks.io/buidl/14353) \n BUIDL link: https://dorahacks.io/buidl/14353\n\nb14g aims to further enhance the security and decentralization of the Core blockchain by addressing potential vulnerabilities through the implementation of Observer Nodes and Merge Staking. This proposal seeks to strengthen the security of Core's Non-Custodial BTC staking and enhance the utility of both BTC and CORE tokens within the Core ecosystem.\n\n# Thank you! \n\nCongratulations to all the winners and the top 10 projects. These initiatives are setting new benchmarks in Bitcoin's DeFi integration, pushing the limits of innovation, and redefining the future of Core and Bitcoin within decentralized finance.\n\nA sincere thanks to all the participants and heartfelt gratitude to the esteemed sponsors, judging panels, and partners for the BTCfi Summer Hackathon 2024: [NLX](https://nlx.trade/), [Halborn](https://www.halborn.com/), [TokenSoft](https://www.tokensoft.io/), [Verichains](https://verichains.io/), and [Request Finance](https://www.request.finance/). Their support was vital in making this hackathon a success.\n\n# 💼 Opportunities Along With Cash Prizes\n\nIn addition to their prize money, winners will receive the [Core Starter Kit](https://coredao.org/initiatives/corestarterprogram), valued at up to $220,000. This comprehensive package includes cloud credits, cutting-edge development tools, discounts on infrastructure providers, and exclusive mentorship opportunities. Winners will also be featured in the BTCfi ecosystem newsletter, gain access to valuable DeFi partnerships, and become eligible for specialized airdrops focused on DeFi development.\n\n\n# About Core\n\nCore serves as the Proof of Stake layer for Bitcoin and is the first enabler of Non-Custodial Bitcoin Staking, which secures a fully EVM-compatible BTCfi ecosystem. Since April 2024, over 5,200 BTC valued at more than $330 million have been staked with Core, enhancing Bitcoin’s utility and security. Core is the most Bitcoin-aligned EVM blockchain with ~50% of Bitcoin mining hash power contributing to the network’s security. This breakthrough has amassed millions of Core adopters—over 20M unique addresses, 283M+ transactions, and over 300M TVL since its mainnet launch in January 2023."}],"skills":null,"applied":false,"isCurrentHackerRegistered":false,"buidlsCount":74,"applicationsCount":76,"organization":{"id":2365,"name":"Core DAO","logo":"https://cdn.dorahacks.io/static/files/18fe99a42afcc4a706e889646b7a273c.png"},"description":"# Core Launches BTCfi Summer Hackathon \n\nCore kicks off the BTCfi Summer Hackathon, a 12-week hackathon to drive innovation in the Bitcoin economy. Aimed at Web3 and BTCfi developers, this hackathon invites participants to build decentralized applications (dApps) on Core, enhancing the developer network and strengthening Core in the BTC narrative.\n\nThank you to our sponsors – [NLX](https://nlx.trade/), [Halborn](https://www.halborn.com/), [TokenSoft](https://www.tokensoft.io/), [Verichains](https://www.verichains.io/), [Request Finance](https://www.request.finance/)\n\n\nJoin this groundbreaking initiative to shape the future of blockchain technology and expand the Core ecosystem.\n\n# How to participate\nParticipating in the BTCfi summer hackathon is easy. Register for the hackathon, mark your calendars, and prepare to showcase your creativity and technical prowess. You can read more on the registration process [here](https://dorahacks.io/hackathon/btcfi-summer-hackathon/detail).\n\n# Key Dates\n\n| Stage | Period |\n| :------ | :------ |\n| Launch | June 6, 2024 |\n| Opening Ceremony | June 10, 2024 |\n| Application Period | June 6 - July 28, 2024 |\n| Screening Top Projects | July 29 - August 12, 2024 |\n| BTCfi Summer Hackathon Last Date for Submissions | July 28, 2024 |\n| Demo Day | August 19, 2024 |\n| Winner Announcement | August 26, 2024 |\n\n\n# Submission Requirements\n\n- URL to GitHub repo containing the codebase of the project \n- A detailed README file should be included in the GitHub repo explaining the prerequisites and other details on how to run the project locally.\n- A short video explaining what the project is about, what the innovation is, how Core Chain is integrated, and the working of the project backend and UI.\n- A short presentation on the project, explaining what the project is about, what the innovation is, how Core is integrated, and the working of the project backend and UI.\n- Entrants are allowed to submit more than one submission. However, each submission must be unique and substantially different from the others.\n- All submission materials must be in English, including the demonstration video, text description, and testing instructions, as well as any other materials submitted.\n- Projects submitted to other hackathons or challenges need to be disclosed in the submission or README of the project.\n- Our judges will evaluate project submissions based on how the team implements their features and the uniqueness of the application. Top three projects will be awarded the prize pool.\n\n\n# The Journey Begins With You\nIf you’re ready to apply, you can do so here.\n\nIf you have any questions, join us in our dedicated Discord support channel inside Core DAO's official Discord: [BTCfi Hackathon Support Channel](https://discord.gg/coredaoofficial)","onboardingCompleted":false,"registerFormUrl":null,"preRegisterTime":0,"publicContactHackerHandle":null,"hackersCount":291,"title":"BTCfi Summer Hackathon","uname":"btcfi-summer-hackathon","imageUrl":"https://cdn.dorahacks.io/static/files/190dfd51b9e1bd38081d2014c77a1021.png","originUrl":null,"startTime":1717689600,"endTime":1722208860,"timezone":"240","city":null,"visible":true,"approvalStatus":6,"state":0,"voteUrl":null,"voteMechanism":null,"bonusPrice":250000,"bonusMechanism":null,"followersCount":0,"ecosystem":"Core Chain,Core,Bitcoin,Ethereum","applyGuide":null,"weight":105,"participationForm":"Virtual","field":"Bitcoin,Blockchain,EVM,Web3,Defi,AI,BTCfi","email":"rumeel@coredao.org","contacts":"Email,rumeel@coredao.org","externalContacts":null,"telegram":null,"discord":null,"whatsapp":null,"wechat":null,"prizeFundingEscrowed":0,"token":"USD","prizeSafeForm":0,"prizeSafeNetwork":null,"prizeSafeOwner":null,"prizeSafeWallet":null,"prizeSafePublishDate":null,"hasOnboarding":false,"isPublicTrackJudging":false,"isEndedTrackJudging":false,"question":"What developer tools do you think are currently not present in the Core ecosystem that would benefit you in future hackathons?","countryId":null,"cityId":null,"venueName":null,"venueAddress":null,"category":1,"isEnableBounty":true,"isBountyRequired":false,"isEndedBountyJudging":false,"bountiesLimitForBuidl":10,"isPublicBountyJudging":false,"status":2},"status":4,"bounty":null,"track":null,"table":"0","trackObj":{"id":1152,"name":"BTCFi Ecosystem Expansion","judgingCriteria":"","weight":0},"bountyObjs":[]}],"chain":[],"chainList":[],"appliedGrant":false,"acceptRewards":false,"owner":156975,"ownerInfo":{"nickname":"b14g Network","username":"b14g","avatar":"https://cdn.dorahacks.io/static/files/190ea274b4ded2b9c2e1a0e44998fffa.png"},"visible":true,"deleted":false,"continuousSponsoring":false,"pageView":0,"sponsoredCount":0,"starCount":0,"sponsoredAmount":"0.00","sponsoredPersons":0,"followers":0,"voteCount":0,"projectMembers":[],"bnbRound":null,"doraGrantDaoTags":[],"techTrees":[0],"infrastructureTags":[0,71,80],"otherInfrastructures":[],"lastEditor":{"id":156975,"username":"b14g","date":1722181245000},"upvoted":false,"followed":false,"upvoters":{"count":0,"list":[]},"kycStatus":0,"ideas":[],"name":"b14g Network - Enhancing Decentralization and Security on Core Chain with b14g","techniqueField":"","source":"-","vision":"Enhancing Decentralization and Security on Core Chain. Expanding BTCFi ecosystem.","projectDescription":"Introduction\n================\n\nCore Chain is currently secured by the Satoshi Plus consensus mechanism, which integrates features from Delegated Proof of Work (DPoW), Delegated Proof of Stake (DPoS), and Non-Custodial BTC Staking. This unique combination allows the Core Chain to leverage hash power delegation, CORE staking, and BTC staking to validate the network, ensuring robust security and decentralization.\n\nOur project, b14g, aims to further enhance these aspects by addressing potential vulnerabilities through the implementation of Observer Nodes and Merge Staking. This proposal seeks to strengthen the security of CoreDAO's BTC staking and enhance the utility of both BTC and CORE tokens within the CoreDAO ecosystem.\n\nIdentifying Improvement Areas in Core Chain\n===========================================\n\nOur deep dive into the Core Chain's current architecture revealed specific areas where we can contribute:\n\n1. Addressing the Relayer Attack Risk in BTC Staking\n \n1. Addressing commitment issue in BTC Staking\n \n1. Expanding CoreDAO BTCFi into b14g\n \n\nAddressing the Relayer Attack Risk in CoreDAO BTC Staking\n---------------------------------------------------------\n\nThe current BTC staking on Core Chain relies on a single relayer node managed by CoreDAO to sync data between the Bitcoin network and the Core network. This centralized approach introduces significant security risks, as the relayer becomes a \"honey pot\" that attracts potential attacks.\n\n**To mitigate this risk, b14g introduces Observer Nodes.**\n\nHere’s a simple illustration of how Observer Nodes work within CoreDAO BTC Staking:\n\n![ob (3).png](https://cdn.dorahacks.io/static/files/190ee026a4cdbabb597a82348ba8b749.png)\n\n* Observer nodes are responsible for monitoring Bitcoin blocks stored on the Core Chain by Relayers.\n \n* The system is designed to be decentralized, allowing anyone to participate in securing the observation process by staking their assets to Observer Nodes.\n \n* Observers and their delegators (those who stake their assets to the Observer Nodes) are incentivized with rewards for honest and accurate monitoring. Conversely, any dishonest behavior or mismanagement can lead to slashing.\n \n\n_We will describe in detail how Observer Nodes work and how we address the challenges of integrating Observer Nodes into the current CoreDAO system in the \"Observer Nodes Design\" section later in this article._\n\nAddressing commitment issue in BTC Staking\n------------------------------------------\n\nCurrently, Core Chain allows users to stake Bitcoin on the Bitcoin Network and use the proof of the confirmed BTC staking transaction to participate in validating the Core Chain. However, we've identified a significant drawback: it can't effectively punish malicious stakers.\n\nIn Proof-of-Stake (PoS) systems, a stake serves as a commitment by users to secure the network. If they break this commitment by engaging in malicious activities, they risk losing their staked assets through a mechanism known as slashing.\n\nHowever, in Core Chain's BTC staking, bad actors only lose potential CORE rewards without facing further penalties. Their staked BTC remains unaffected, allowing the staker to continue earning profits on other BTC staking protocols. This situation seems unfair and undermines the security of the Core Chain.\n\n**The Need for a Slashing Mechanism**\n\nTo address this issue, a slashing mechanism is necessary for BTC staking on CoreDAO. However, implementing such a mechanism presents challenges:\n\n**First,** burning BTC as a penalty is impractical due to its high value. No one would burn gold, right?\n\n**Second,** allowing slashing of BTC introduces security risks. An event on the PoS chain, such as an attack, could trigger the slashing of BTC locked on the Bitcoin network, creating more points of security vulnerabilities.\n\n**The Dilemma: How to enforce penalties without compromising the value and security of BTC?**\n\nTo address this issue, b14g employs **Merge Staking.**\n\nHere’s a simple illustration of how Merge Staking works within CoreDAO BTC Staking:\n\n![Merge (3).png](https://cdn.dorahacks.io/static/files/190ee02c731dd8df4c492fb43aa85a8a.png)\n\nUsers can merge CORE with BTC for staking. In case of misbehavior, slashing penalties are applied to the staked CORE tokens, not the BTC.\n\nThis approach ensures that the network can penalize bad actors without risking the high-value BTC, thus maintaining both security and fairness in the staking process.\n\nThis method also increases the demand for CORE, as it becomes essential for maximizing BTC staking returns. This drives CORE adoption and strengthens its position within the CoreDAO ecosystem.\n\n_We will explore the detailed workings of the Merge Staking and its crucial role in the CoreDAO ecosystem and the broader BTCFi ecosystem in the \"Merge Staking Design\" section later in this article._\n\nExpanding CoreDAO BTCFi into b14g\n---------------------------------\n\n![Expand (3).png](https://cdn.dorahacks.io/static/files/190ee0316fe103f27e8e7c6485989091.png)\n\nFor BTC holders who have locked their BTC on CoreDAO, there is another way to earn more rewards. By merging staked BTC with B14G tokens on the b14g platform, users can delegate their stake to validators to secure the b14g network, and earn B14G rewards.\n\nObserver Nodes Design\n=====================\n\nThe concept of Observer Nodes is straightforward, but its design involves several complexities. Specifically, we need to address how to bootstrap the Observer Nodes and integrate it with CoreDAO's existing economics.\n\n1\\. How to bootstrap the Observer Nodes?\n----------------------------------------\n\nIn simple terms, we need to figure out how to attract people to stake their assets in Observer Nodes to secure the network.\n\nThis isn't an easy task.\n\nTo begin with, we're considering using CORE, the native token of CoreDAO, for staking. There are several challenges we need to address:\n\n**Firstly,** it can be difficult to find participants who are willing to invest their CORE tokens in Observer Nodes.\n\n**Secondly,** the value of the CORE token is critical for maintaining the system's security. A significant drop in its value could weaken both the Observation Nodes and CoreDAO's security, resulting in a decrease in the Total Value Locked (TVL). This drop in TVL could, in turn, further reduce the token's price, creating a potential “downward spiral\".\n\n**Finally,** stakers may need to give up other potential rewards. If users already hold CORE, they might prefer to stake it directly to secure the CORE chain instead of using it for Observer Nodes.\n\n**Addressing the Bootstrap Challenge**\n\nTo tackle these issues, we've designed Observer Nodes with a few key strategies:\n\n**Leverage Existing Participants:** The easiest way to find stakers is to engage those already involved in the CoreDAO ecosystem. These participants have a vested interest in CoreDAO’s success, either through Non-Custodial BTC staking, CORE staking, or simply holding CORE tokens.\n\n**Restaking Options:** Stakers have the option to restake their assets, contributing to the security of both CoreDAO and other infrastructures while earning staking rewards.\n\n**Merge Staking:** We’ve implemented a Merge Staking that allows stakers to offer economic security using both CORE and other high-liquidity tokens. If one token, such as BTC, has lower volatility and deeper liquidity compared to CORE, it helps considerably increase the total stake value and reduce the risk of “downward spiral\". Even if CORE’s price drops, the security provided by staked BTC offers a baseline level of economic stability.\n\n2\\. How to integrate Observer Nodes with current CoreDAO's economic framework?\n------------------------------------------------------------------------------\n\nAnswer: We use **Merge Staking.**\n\nHere’s a detailed illustration of how Observer Nodes and Merge Staking work within CoreDAO BTC Staking:\n\n![Proposal.png](https://cdn.dorahacks.io/static/files/190ee03760d58f8bb40254c4515ad6dc.png)\n\n* **Choosing Staking Assets:** We will merge CORE and BTC (particularly BTC locked through CoreDAO’s BTC staking) as staking assets. This leverages existing CORE holders and BTC stakers as participants to secure the Observer nodes.\n \n* **Reducing Opportunity Cost for Stakers:** We’ve designed a system where a portion of the merged CORE is automatically delegated to CORE validators. This delegation offers additional CORE rewards to the stakers, alongside the rewards from Observer Nodes, while also enhancing Core Chain’s security.Moreover, when BTC is merged with CORE, it automatically mints vBTC, an ERC-20 liquid restaking token. vBTC can be used in various DeFi applications, boosting the earning potential for both BTC holders who have locked their BTC through CoreDAO and CORE holders.\n \n* **Implementing Slashing for Credible Commitments:** Slashing penalties will apply to CORE, not BTC, to ensure honesty without risking BTC’s security. This keeps BTC protected from PoS-related attacks and potential security issues.\n \n\n_By following these strategies, we aim to seamlessly integrate Observer Nodes into CoreDAO’s economic framework, enhance CORE token utility, and provide robust security for Core Chain._\n\nMerge Staking Design\n====================\n\nThe Merge Staking is a cornerstone of b14g's strategy in completing the Observer Node design, improving CoreDAO BTC staking, and expanding the BTCFi ecosystem.\n\nWhat?\n-----\n\nThe Merge Staking is a process where users merge BTC with another token to secure other PoS networks and earn rewards for their honest contribution. Conversely, in case of misbehavior, slashing is applied to the counterpart token in the merge, not BTC.\n\nWhy?\n----\n\nBitcoin, often referred to as \"digital gold,\" possesses two essential attributes: \"digital\" and \"gold.\" As a store of value, BTC has proven its worth with a market cap exceeding $1.5 trillion. As a digital asset, BTC should be easily connected with other tokens and integrated into other protocols—an aspect is somewhat limited by Bitcoin's lack of smart contract features.\n\nWe design Merge Staking to enhance Bitcoin's \"digital\" capabilities. This mechanism enables BTC to easily work with any tokens, any protocols, thereby **leveraging BTC to provide economic security to other protocols without compromising BTC’s role as a store of value.**\n\nThis approach preserves Bitcoin's role as a store of value in two key ways: first, by ensuring BTC remains non-custodially locked on the Bitcoin network, protecting its security and immutability; and second, by applying slashing penalties to the counterpart token in the merge rather than to BTC itself—reflecting the idea that no one would want to \"destroy their gold.\"\n\nBy allowing BTC to merge with other tokens for staking, b14g aims to enhance the security of associated protocols. Specifically, BTC, with its lower volatility and deeper liquidity compared to many protocols' native tokens, can significantly increase the total value staked and reduce the risk of a \"downward spiral.\" Even if the price of a native token falls, the security provided by staked BTC offers a baseline level of economic stability for the protocol.\n\nBeyond BTC, B14G, and CORE.\n---------------------------\n\nMerge Staking is not limited to BTC, B14G, and CORE. It can be adapted to merge BTC with various tokens, facilitating easy integration between BTC and other protocols. This flexibility helps expand the BTCFi ecosystem, paving the way for more robust and versatile blockchain networks.\n\nTechnical Details\n=================\n\nThe technical architecture of observer nodes and Merge Staking is based on the following principles:\n\n* It is simple. Minimize changes to the existing Core Chain to ensure compatibility and ease of integration.\n \n* It is decentralized. Maintain a decentralized structure to ensure correct storage and verification of Bitcoin block data while safeguarding Core Chain security.\n \n* It is user-friendly. Streamline processes for locking, merging, staking, minting assets to enhance user experience.\n \n\n1\\. Main Components\n-------------------\n\n* **Delegator**: A BTC holder who wants to stake their BTC on CoreDAO.\n \n* **Relayers**: Entities that relay information between Bitcoin network and Core Chain.\n \n* **Observer**: Responsible for monitoring Bitcoin blocks stored on the Core Chain, confirming the accuracy of each block stored in the BTCLightClient contract. Observers are rewarded for accurate confirmations and penalized for inaccuracies.\n \n* **Observer Node:** Monitors, verifies, and confirms Bitcoin block data stored on the BTCLightClient contract.\n \n* **Merge Staking:** After BTC staking, users merge BTC (BTC lock txn) with CORE tokens to stake or delegate their stake to Observer nodes. A portion of the staked CORE is locked in an observer contract as reserve in case of a slashing penalty. These locked CORE tokens are also automatically delegated to CORE validators for CORE Staking.\n \n* **Merge Ratio:** The ratio for merging CORE tokens with BTC is determined using a price feed. This ensures that the value of CORE relative to BTC is maintained at 30%.\n \n* **Reward Distribution:** Rewards are distributed proportionally based on the amount of CORE delegated. Penalties impact both the observers and their delegators' staked CORE.\n \n\n2\\. Implementation\n------------------\n\nThe following figure illustrates how b14g contributes to the CoreDAO BTC staking mechanism:\n\n![CoreDAOHackathon.drawio (1).png](https://cdn.dorahacks.io/static/files/190ee03eba90276c131d9de4558a1812.png)\n\n### **CoreDAO's Current Process**\n\n**(1)** The delegator locks BTC on the Bitcoin network by creating a BTC lock transaction.\n\n**(2)** The delegator then delegates the locked BTC to the PledgeAgent Layer 2 contract on CoreDAO by calling the delegateBtc function. This function specifies the staking details, including the TxLock and the validator to whom the delegator wishes to assign their stake.\n\n**(3) and (4)** CoreDAO uses a relayer node to monitor new Bitcoin blocks and store them on the BTCLightClient contract. Currently, this relayer node is managed centrally by CoreDAO, which introduces significant security risks as the relayer node represents a potential single point of failure.\n\n**(5)** The PledgeAgent contract verifies the BTC lock transaction from step 2 by cross-checking the data stored in the BTCLightClient. Following this verification, the PledgeAgent updates the staking score for the associated validator.\n\n### **b14g's Contribution**\n\n**Observer Nodes**\n\n**(6)** Observer nodes listen to blocks stored on the BTCLightClient contract. These nodes verify the accuracy of the data on BTCLightClient by cross-checking it with the actual block data on the Bitcoin network.\n\n**(7) and (8)** The observer nodes call the submitAssertion function on the Observer contract to forward their confirmation on block assertions to the Monitor contract.\n\n**(9)** The Monitor contract cross-checks the data from the observer nodes' assertions with the data stored on the BTCLightClient. If the data matches, the observer nodes receive B14G rewards for their previous assertions when the next BTC block is added on BTCLightClient contract. If the data does not match, the observer nodes face slashing on their staked CORE.\n\n**Merge Staking**\n\n**(10)** After the BTC lock transactions are verified on the PledgeAgent contract, delegators can proceed with the Merge Staking. This involves merging locked BTC and CORE for restaking onto the Observer contract or delegating their stake to Observer nodes. The process uses the Restake(txBTCLock) payable function to stake CORE tokens along with BTC lock txn details and delegate the stake to the Observer contract.\n\nIn this setup, CORE tokens are subject to slashing if the delegated Observer nodes misbehave. Additionally, a portion of the staked CORE is automatically delegated to CORE validators using the delegateCoin() payable function of the PledgeAgent contract. This delegation helps to earn additional CORE rewards and enhances the security of the Core Chain.\n\n**(11)** The Observer contract reads the lock transaction details stored on the PledgeAgent contract (from step 5) to confirm that the BTC has been staked before proceeding with restaking (step 10).\n\nFinal Thought\n=============\n\n**Contributions to CoreDAO**\n\nWith the introduction of Observer Nodes and the Merge Staking, b14g reduces risks associated with single-point relayer failures and provides a more robust penalty system to CoreDAO BTC staking. This not only boosts security but also increases the utility and demand for CORE tokens, benefiting the entire network.\n\n**Contributions to BTCFi**\n\nIn the broader BTCFi ecosystem, the Merge Staking by b14g provides a scalable way to integrate BTC into DeFi. By merging BTC with other tokens like CORE for staking, it allows BTC holders to easily participate in DeFi without compromising the security of their assets. For protocols, it now becomes easy to leverage the economic security power of BTC.\n\n**Future of BTCFi**\n\nLooking ahead, we foresee a bold future for BTCFi. We believe Bitcoin will soon assert its dominance not just in market cap value but also in economic security power, becoming the 'king of crypto' in every sense.","teamDescription":"Bee - CEO\nMas - CTO\nEileen - Business Development","githubPage":"https://github.com/b14glabs","githubVerify":0,"demoLink":"https://core-dao-hackathon.vercel.app/stake","demoVideo":"https://www.youtube.com/watch?v=PTV8j-S-44U","ownerTitle":null,"ownerIntroduction":null,"twitterVerified":false,"weibo":null,"nft":null,"scOwner":"","editTime":1722181245,"upvotes":"0.00","isRecruitingEnabled":false,"recruitingInfo":"","recruitingLink":null,"twitter":"b14g_network","facebook":null,"instagram":null,"socialTelegram":null,"socialDiscord":null,"socialLinks":[],"showedFunding":false,"createdAt":"2024-07-25T22:07:23.710930+08:00","updatedAt":"2024-07-28T23:40:45.784996+08:00","milestoneEditor":156975,"path":"/buidl/14353","techField":"","techFieldAry":[],"techTree":[0],"tags":[0,71,80],"otherTags":[],"origin":"-","intro":"Introduction\n================\n\nCore Chain is currently secured by the Satoshi Plus consensus mechanism, which integrates features from Delegated Proof of Work (DPoW), Delegated Proof of Stake (DPoS), and Non-Custodial BTC Staking. This unique combination allows the Core Chain to leverage hash power delegation, CORE staking, and BTC staking to validate the network, ensuring robust security and decentralization.\n\nOur project, b14g, aims to further enhance these aspects by addressing potential vulnerabilities through the implementation of Observer Nodes and Merge Staking. This proposal seeks to strengthen the security of CoreDAO's BTC staking and enhance the utility of both BTC and CORE tokens within the CoreDAO ecosystem.\n\nIdentifying Improvement Areas in Core Chain\n===========================================\n\nOur deep dive into the Core Chain's current architecture revealed specific areas where we can contribute:\n\n1. Addressing the Relayer Attack Risk in BTC Staking\n \n1. Addressing commitment issue in BTC Staking\n \n1. Expanding CoreDAO BTCFi into b14g\n \n\nAddressing the Relayer Attack Risk in CoreDAO BTC Staking\n---------------------------------------------------------\n\nThe current BTC staking on Core Chain relies on a single relayer node managed by CoreDAO to sync data between the Bitcoin network and the Core network. This centralized approach introduces significant security risks, as the relayer becomes a \"honey pot\" that attracts potential attacks.\n\n**To mitigate this risk, b14g introduces Observer Nodes.**\n\nHere’s a simple illustration of how Observer Nodes work within CoreDAO BTC Staking:\n\n![ob (3).png](https://cdn.dorahacks.io/static/files/190ee026a4cdbabb597a82348ba8b749.png)\n\n* Observer nodes are responsible for monitoring Bitcoin blocks stored on the Core Chain by Relayers.\n \n* The system is designed to be decentralized, allowing anyone to participate in securing the observation process by staking their assets to Observer Nodes.\n \n* Observers and their delegators (those who stake their assets to the Observer Nodes) are incentivized with rewards for honest and accurate monitoring. Conversely, any dishonest behavior or mismanagement can lead to slashing.\n \n\n_We will describe in detail how Observer Nodes work and how we address the challenges of integrating Observer Nodes into the current CoreDAO system in the \"Observer Nodes Design\" section later in this article._\n\nAddressing commitment issue in BTC Staking\n------------------------------------------\n\nCurrently, Core Chain allows users to stake Bitcoin on the Bitcoin Network and use the proof of the confirmed BTC staking transaction to participate in validating the Core Chain. However, we've identified a significant drawback: it can't effectively punish malicious stakers.\n\nIn Proof-of-Stake (PoS) systems, a stake serves as a commitment by users to secure the network. If they break this commitment by engaging in malicious activities, they risk losing their staked assets through a mechanism known as slashing.\n\nHowever, in Core Chain's BTC staking, bad actors only lose potential CORE rewards without facing further penalties. Their staked BTC remains unaffected, allowing the staker to continue earning profits on other BTC staking protocols. This situation seems unfair and undermines the security of the Core Chain.\n\n**The Need for a Slashing Mechanism**\n\nTo address this issue, a slashing mechanism is necessary for BTC staking on CoreDAO. However, implementing such a mechanism presents challenges:\n\n**First,** burning BTC as a penalty is impractical due to its high value. No one would burn gold, right?\n\n**Second,** allowing slashing of BTC introduces security risks. An event on the PoS chain, such as an attack, could trigger the slashing of BTC locked on the Bitcoin network, creating more points of security vulnerabilities.\n\n**The Dilemma: How to enforce penalties without compromising the value and security of BTC?**\n\nTo address this issue, b14g employs **Merge Staking.**\n\nHere’s a simple illustration of how Merge Staking works within CoreDAO BTC Staking:\n\n![Merge (3).png](https://cdn.dorahacks.io/static/files/190ee02c731dd8df4c492fb43aa85a8a.png)\n\nUsers can merge CORE with BTC for staking. In case of misbehavior, slashing penalties are applied to the staked CORE tokens, not the BTC.\n\nThis approach ensures that the network can penalize bad actors without risking the high-value BTC, thus maintaining both security and fairness in the staking process.\n\nThis method also increases the demand for CORE, as it becomes essential for maximizing BTC staking returns. This drives CORE adoption and strengthens its position within the CoreDAO ecosystem.\n\n_We will explore the detailed workings of the Merge Staking and its crucial role in the CoreDAO ecosystem and the broader BTCFi ecosystem in the \"Merge Staking Design\" section later in this article._\n\nExpanding CoreDAO BTCFi into b14g\n---------------------------------\n\n![Expand (3).png](https://cdn.dorahacks.io/static/files/190ee0316fe103f27e8e7c6485989091.png)\n\nFor BTC holders who have locked their BTC on CoreDAO, there is another way to earn more rewards. By merging staked BTC with B14G tokens on the b14g platform, users can delegate their stake to validators to secure the b14g network, and earn B14G rewards.\n\nObserver Nodes Design\n=====================\n\nThe concept of Observer Nodes is straightforward, but its design involves several complexities. Specifically, we need to address how to bootstrap the Observer Nodes and integrate it with CoreDAO's existing economics.\n\n1\\. How to bootstrap the Observer Nodes?\n----------------------------------------\n\nIn simple terms, we need to figure out how to attract people to stake their assets in Observer Nodes to secure the network.\n\nThis isn't an easy task.\n\nTo begin with, we're considering using CORE, the native token of CoreDAO, for staking. There are several challenges we need to address:\n\n**Firstly,** it can be difficult to find participants who are willing to invest their CORE tokens in Observer Nodes.\n\n**Secondly,** the value of the CORE token is critical for maintaining the system's security. A significant drop in its value could weaken both the Observation Nodes and CoreDAO's security, resulting in a decrease in the Total Value Locked (TVL). This drop in TVL could, in turn, further reduce the token's price, creating a potential “downward spiral\".\n\n**Finally,** stakers may need to give up other potential rewards. If users already hold CORE, they might prefer to stake it directly to secure the CORE chain instead of using it for Observer Nodes.\n\n**Addressing the Bootstrap Challenge**\n\nTo tackle these issues, we've designed Observer Nodes with a few key strategies:\n\n**Leverage Existing Participants:** The easiest way to find stakers is to engage those already involved in the CoreDAO ecosystem. These participants have a vested interest in CoreDAO’s success, either through Non-Custodial BTC staking, CORE staking, or simply holding CORE tokens.\n\n**Restaking Options:** Stakers have the option to restake their assets, contributing to the security of both CoreDAO and other infrastructures while earning staking rewards.\n\n**Merge Staking:** We’ve implemented a Merge Staking that allows stakers to offer economic security using both CORE and other high-liquidity tokens. If one token, such as BTC, has lower volatility and deeper liquidity compared to CORE, it helps considerably increase the total stake value and reduce the risk of “downward spiral\". Even if CORE’s price drops, the security provided by staked BTC offers a baseline level of economic stability.\n\n2\\. How to integrate Observer Nodes with current CoreDAO's economic framework?\n------------------------------------------------------------------------------\n\nAnswer: We use **Merge Staking.**\n\nHere’s a detailed illustration of how Observer Nodes and Merge Staking work within CoreDAO BTC Staking:\n\n![Proposal.png](https://cdn.dorahacks.io/static/files/190ee03760d58f8bb40254c4515ad6dc.png)\n\n* **Choosing Staking Assets:** We will merge CORE and BTC (particularly BTC locked through CoreDAO’s BTC staking) as staking assets. This leverages existing CORE holders and BTC stakers as participants to secure the Observer nodes.\n \n* **Reducing Opportunity Cost for Stakers:** We’ve designed a system where a portion of the merged CORE is automatically delegated to CORE validators. This delegation offers additional CORE rewards to the stakers, alongside the rewards from Observer Nodes, while also enhancing Core Chain’s security.Moreover, when BTC is merged with CORE, it automatically mints vBTC, an ERC-20 liquid restaking token. vBTC can be used in various DeFi applications, boosting the earning potential for both BTC holders who have locked their BTC through CoreDAO and CORE holders.\n \n* **Implementing Slashing for Credible Commitments:** Slashing penalties will apply to CORE, not BTC, to ensure honesty without risking BTC’s security. This keeps BTC protected from PoS-related attacks and potential security issues.\n \n\n_By following these strategies, we aim to seamlessly integrate Observer Nodes into CoreDAO’s economic framework, enhance CORE token utility, and provide robust security for Core Chain._\n\nMerge Staking Design\n====================\n\nThe Merge Staking is a cornerstone of b14g's strategy in completing the Observer Node design, improving CoreDAO BTC staking, and expanding the BTCFi ecosystem.\n\nWhat?\n-----\n\nThe Merge Staking is a process where users merge BTC with another token to secure other PoS networks and earn rewards for their honest contribution. Conversely, in case of misbehavior, slashing is applied to the counterpart token in the merge, not BTC.\n\nWhy?\n----\n\nBitcoin, often referred to as \"digital gold,\" possesses two essential attributes: \"digital\" and \"gold.\" As a store of value, BTC has proven its worth with a market cap exceeding $1.5 trillion. As a digital asset, BTC should be easily connected with other tokens and integrated into other protocols—an aspect is somewhat limited by Bitcoin's lack of smart contract features.\n\nWe design Merge Staking to enhance Bitcoin's \"digital\" capabilities. This mechanism enables BTC to easily work with any tokens, any protocols, thereby **leveraging BTC to provide economic security to other protocols without compromising BTC’s role as a store of value.**\n\nThis approach preserves Bitcoin's role as a store of value in two key ways: first, by ensuring BTC remains non-custodially locked on the Bitcoin network, protecting its security and immutability; and second, by applying slashing penalties to the counterpart token in the merge rather than to BTC itself—reflecting the idea that no one would want to \"destroy their gold.\"\n\nBy allowing BTC to merge with other tokens for staking, b14g aims to enhance the security of associated protocols. Specifically, BTC, with its lower volatility and deeper liquidity compared to many protocols' native tokens, can significantly increase the total value staked and reduce the risk of a \"downward spiral.\" Even if the price of a native token falls, the security provided by staked BTC offers a baseline level of economic stability for the protocol.\n\nBeyond BTC, B14G, and CORE.\n---------------------------\n\nMerge Staking is not limited to BTC, B14G, and CORE. It can be adapted to merge BTC with various tokens, facilitating easy integration between BTC and other protocols. This flexibility helps expand the BTCFi ecosystem, paving the way for more robust and versatile blockchain networks.\n\nTechnical Details\n=================\n\nThe technical architecture of observer nodes and Merge Staking is based on the following principles:\n\n* It is simple. Minimize changes to the existing Core Chain to ensure compatibility and ease of integration.\n \n* It is decentralized. Maintain a decentralized structure to ensure correct storage and verification of Bitcoin block data while safeguarding Core Chain security.\n \n* It is user-friendly. Streamline processes for locking, merging, staking, minting assets to enhance user experience.\n \n\n1\\. Main Components\n-------------------\n\n* **Delegator**: A BTC holder who wants to stake their BTC on CoreDAO.\n \n* **Relayers**: Entities that relay information between Bitcoin network and Core Chain.\n \n* **Observer**: Responsible for monitoring Bitcoin blocks stored on the Core Chain, confirming the accuracy of each block stored in the BTCLightClient contract. Observers are rewarded for accurate confirmations and penalized for inaccuracies.\n \n* **Observer Node:** Monitors, verifies, and confirms Bitcoin block data stored on the BTCLightClient contract.\n \n* **Merge Staking:** After BTC staking, users merge BTC (BTC lock txn) with CORE tokens to stake or delegate their stake to Observer nodes. A portion of the staked CORE is locked in an observer contract as reserve in case of a slashing penalty. These locked CORE tokens are also automatically delegated to CORE validators for CORE Staking.\n \n* **Merge Ratio:** The ratio for merging CORE tokens with BTC is determined using a price feed. This ensures that the value of CORE relative to BTC is maintained at 30%.\n \n* **Reward Distribution:** Rewards are distributed proportionally based on the amount of CORE delegated. Penalties impact both the observers and their delegators' staked CORE.\n \n\n2\\. Implementation\n------------------\n\nThe following figure illustrates how b14g contributes to the CoreDAO BTC staking mechanism:\n\n![CoreDAOHackathon.drawio (1).png](https://cdn.dorahacks.io/static/files/190ee03eba90276c131d9de4558a1812.png)\n\n### **CoreDAO's Current Process**\n\n**(1)** The delegator locks BTC on the Bitcoin network by creating a BTC lock transaction.\n\n**(2)** The delegator then delegates the locked BTC to the PledgeAgent Layer 2 contract on CoreDAO by calling the delegateBtc function. This function specifies the staking details, including the TxLock and the validator to whom the delegator wishes to assign their stake.\n\n**(3) and (4)** CoreDAO uses a relayer node to monitor new Bitcoin blocks and store them on the BTCLightClient contract. Currently, this relayer node is managed centrally by CoreDAO, which introduces significant security risks as the relayer node represents a potential single point of failure.\n\n**(5)** The PledgeAgent contract verifies the BTC lock transaction from step 2 by cross-checking the data stored in the BTCLightClient. Following this verification, the PledgeAgent updates the staking score for the associated validator.\n\n### **b14g's Contribution**\n\n**Observer Nodes**\n\n**(6)** Observer nodes listen to blocks stored on the BTCLightClient contract. These nodes verify the accuracy of the data on BTCLightClient by cross-checking it with the actual block data on the Bitcoin network.\n\n**(7) and (8)** The observer nodes call the submitAssertion function on the Observer contract to forward their confirmation on block assertions to the Monitor contract.\n\n**(9)** The Monitor contract cross-checks the data from the observer nodes' assertions with the data stored on the BTCLightClient. If the data matches, the observer nodes receive B14G rewards for their previous assertions when the next BTC block is added on BTCLightClient contract. If the data does not match, the observer nodes face slashing on their staked CORE.\n\n**Merge Staking**\n\n**(10)** After the BTC lock transactions are verified on the PledgeAgent contract, delegators can proceed with the Merge Staking. This involves merging locked BTC and CORE for restaking onto the Observer contract or delegating their stake to Observer nodes. The process uses the Restake(txBTCLock) payable function to stake CORE tokens along with BTC lock txn details and delegate the stake to the Observer contract.\n\nIn this setup, CORE tokens are subject to slashing if the delegated Observer nodes misbehave. Additionally, a portion of the staked CORE is automatically delegated to CORE validators using the delegateCoin() payable function of the PledgeAgent contract. This delegation helps to earn additional CORE rewards and enhances the security of the Core Chain.\n\n**(11)** The Observer contract reads the lock transaction details stored on the PledgeAgent contract (from step 5) to confirm that the BTC has been staked before proceeding with restaking (step 10).\n\nFinal Thought\n=============\n\n**Contributions to CoreDAO**\n\nWith the introduction of Observer Nodes and the Merge Staking, b14g reduces risks associated with single-point relayer failures and provides a more robust penalty system to CoreDAO BTC staking. This not only boosts security but also increases the utility and demand for CORE tokens, benefiting the entire network.\n\n**Contributions to BTCFi**\n\nIn the broader BTCFi ecosystem, the Merge Staking by b14g provides a scalable way to integrate BTC into DeFi. By merging BTC with other tokens like CORE for staking, it allows BTC holders to easily participate in DeFi without compromising the security of their assets. For protocols, it now becomes easy to leverage the economic security power of BTC.\n\n**Future of BTCFi**\n\nLooking ahead, we foresee a bold future for BTCFi. We believe Bitcoin will soon assert its dominance not just in market cap value but also in economic security power, becoming the 'king of crypto' in every sense.","images":["https://cdn.dorahacks.io/static/files/190ea2f074d38e52e7754de490f91bf1.png"],"team":"Bee - CEO\nMas - CTO\nEileen - Business Development","github":"https://github.com/b14glabs","demo":"https://core-dao-hackathon.vercel.app/stake","video":"https://www.youtube.com/watch?v=PTV8j-S-44U","socialTwitter":"b14g_network","socialFacebook":null,"socialInstagram":null,"nftId":null,"haxonBuidls":[{"id":15463,"projectId":14353,"name":"b14g Network - Enhancing Decentralization and Security on Core Chain with b14g","track":"BTCFi Ecosystem Expansion","bounties":[],"haxonId":429,"haxonName":"BTCfi Summer Hackathon","status":2,"haxonCreateAt":"2024/06/06 16:00:00 UTC"}],"kudoData":null,"bountyObjs":[],"badges":["{\"schema\":\"BADGE\",\"d\":{\"index\":\"b12507\",\"badgeType\":\"buidl\",\"path\":\"/buidl/14353/achievement/b12507\",\"ownerId\":14353,\"iconName\":\"b1\",\"updatedDate\":\"2024/08/27\",\"title\":\"BTCfi Summer Hackathon\",\"detail\":\"Winner\",\"tag\":\"Hackathon\",\"imageUrl\":\"https://cdn.dorahacks.io/static/badge/b1_BTCfi~c32Summer~c32Hackathon.webp\",\"shareImageUrl\":\"https://cdn.dorahacks.io/static/badge/b1_BTCfi~c32Summer~c32Hackathon.jpg\",\"id\":12507,\"metaInfo\":{\"type\":\"HACKATHON_WINNER\",\"hackathonId\":429,\"title\":\"BTCfi Summer Hackathon\"},\"createdAt\":1724745725,\"updatedAt\":1724745725,\"type\":1,\"subjectId\":429,\"metadata\":{},\"buidl\":14353}}","{\"schema\":\"BADGE\",\"d\":{\"index\":\"b11770\",\"badgeType\":\"buidl\",\"path\":\"/buidl/14353/achievement/b11770\",\"ownerId\":14353,\"iconName\":\"b0\",\"updatedDate\":\"2024/07/26\",\"title\":\"BTCfi Summer Hackathon\",\"detail\":\"Participation\",\"tag\":\"Hackathon\",\"imageUrl\":\"https://cdn.dorahacks.io/static/badge/b0_BTCfi~c32Summer~c32Hackathon.webp\",\"shareImageUrl\":\"https://cdn.dorahacks.io/static/badge/b0_BTCfi~c32Summer~c32Hackathon.jpg\",\"id\":11770,\"metaInfo\":{\"type\":\"HACKATHON_PARTICIPATION\",\"hackathonId\":429,\"title\":\"BTCfi Summer Hackathon\"},\"createdAt\":1722002253,\"updatedAt\":1722002253,\"type\":0,\"subjectId\":429,\"metadata\":{},\"buidl\":14353}}"]}}