About BQ Labs
BQ Labs is pioneering the first Bitcoin Risk Management Layer, designed to secure the ecosystem through a decentralized insurance infrastructure. The BQ Protocol offers a comprehensive technical, operational, and legal framework that enables members to underwrite and trade risk as a liquid asset, purchase coverage, and efficiently assess claims.
Problems BQ Labs Solves
- Insufficient trust and credibility in the emerging BTCFi landscape.
- Lack of tools for building on-chain insurance solutions for on-chain risks.
- Absence of Bitcoin-native insurance and risk management for BTC Layer2s.
- Lack of a trustless claim assessment mechanism.
How it works
Insurance Process and Key Actors
The BQ Protocol operates through a robust insurance marketplace and risk infrastructure that serves three key user personas: Proposers (Cover Buyers), Stakers (Liquidity Providers), and Governance Participants (Holders of BQ Tokens). Here's how it works:
Application Layer
Proposer (Cover Buyer/Client): Proposers can secure their BTCFi activities, such as staking and smart contracts, by purchasing insurance coverage through our marketplace. After connecting their non-custodial wallet, they can choose from various coverage options based on their risk profile and BTCFi activity. Claims are processed through a governance-based system involving risk assessors, validators, and cover underwriters, especially for complex risks.
Staker (Liquidity Provider): Stakers contribute liquidity to insurance pools, earning yields through their investments. Risk and yield details are fully transparent, allowing Stakers to assess potential returns. The financial capital provided by Stakers is utilized to cover risks during adverse events.
Risk Infrastructure Layer
Governance and Pool Infrastructure: BQ Labs has curated a set of credit-rated pools, classified according to the various risks present in the BTCFi space. All claim assessments are conducted transparently and on-chain through a governance voting mechanism. Claim assessors must hold BQ Tokens to vote on proposals, and governance participants are rewarded with BQ Tokens for their participation.
Core Features
1. Purchase Cover: Users can browse through available risks, select a tenure and cover amount, and secure their BTCFi position.
2. Stake: A smart contract-based staking module allows users to stake their assets in different credit-rated pools, view pool fund utilization, claim daily yields, and withdraw assets post-tenure.
3. Claim Module: If cover buyers encounter a risk event, they can claim lost assets up to their cover value.
4. Governance: A decentralized governance module is used to assess cover claims. BQ Token holders can participate in claim proposal voting and are incentivized for making the right decisions.
5. Dynamic Pricing: The application features dynamic calculations for cover capacity, pool ratios, and claim-based price discovery.
Technical Details
We developed our smart contracts using Solidity, while our frontend is built with React.js. For seamless Web3 integration, we utilized the Wagmi library to connect wallets. The entire application is powered by the PWR BTC+ chain, ensuring robust performance.
All logos and images are securely stored on IPFS. Our tech stack includes Node.js (v18+), TypeScript, Next.js, and TailwindCSS for the frontend. We use Rust for backend development, GitHub for version control, and Vercel for hosting.
Next Step after the Hackathon:
- Releasing our v1.0 of Technical Docs (insert hyperlink to docs)
- DevNet - September 2024
- MainNet - Q1 2025
- Fundraise - Raising $2.5m with soft commits, Detailed Pitch Deck (link to deck)
- Partnerships - Secured 25+ partners, hoping to insure & secure the rest of BTCFi in the upcoming months
- Team: Founders are serial entrepreneurs with a proven track record of scaling Web3 ventures, Head of Finance is ex-Goldman Sachs IB with extensive experience in alternative asset classes. Dev Lead is ex - Solana & Phi Labs Engg Lead. Supported by advisors: Paul Taylor, Geoff McAlister and Parth Desai
Appendix
Docs : docs.bqlabs.xyz Deck : https://docsend.com/view/eiiukjdrtr2wq47z