As a pioneer of cryptocurrency, Bitcoin was not initially designed to support complex token operations. Compared with more advanced blockchains such as Ethereum, its application ecosystem appears to be relatively backward. However, with the recent popularity of the Bitcoin ecosystem, the exploration of the 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 made its TVL and transaction volume data achieve significant results. Growing and accounting for more than 90% of TVL on Stacks.
The following introduces the ecological layout of Alex Labs in the encryption world.
A brief analysis of Alex Labs’ team and products: The main creator once held important positions at Morgan 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 professionals with extensive experience, 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, having served as managing director at Morgan Stanley and Credit Suisse. She is also an active author, scholar and advocate for women in finance.
Rachel Yu, another co-founder who joined her, holds undergraduate and master’s degrees from Peking University. She started her investment banking career at Goldman Sachs Asia and later served as an executive director at JP Morgan Asia, gaining 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 (AMM), decentralized exchanges (DEX), token exchanges (Swap), liquidity staking, mining and oracles, etc. These products aim to provide Bitcoin users with more diversified financial services and expand its application scope in the DeFi field.
Alex Labs’ goal is 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’ focus on industry development trends and its efforts in promoting the integration of blockchain technology and financial services.
To sum up, 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, take a look at the Bitcoin DeFi products launched by Alex Labs
In June 2022, Alex Labs launched his 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 the capital pool. The system allows borrowers to submit collateral to obtain a loan with the highest loan-to-value (LTV) ratio. The process involves smart contracts in which the borrower is required to pay interest on the tokens upfront when borrowing. This mechanism ensures the fixation of interest rates and reduces the impact of market fluctuations on both borrowers and lenders.
Lenders receive so-called yTokens (yield tokens) during this process, which represent the lender’s principal and accrued interest. The core feature of yToken is to provide fixed interest rates, allowing lenders to clearly understand their investment returns. At the end of the loan term, the lender can redeem its yToken via a smart contract, ensuring receipt of the agreed accrued interest on the maturity date.
When it comes to token trading, Alex Labs uses the Automated Market Maker (AMM) approach, a protocol that 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 leverage trading functions in the testnet environment. This allows users to use leverage when making trades, 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 transactions of BRC20 and SIP10 tokens, and the cumulative transaction volume has reached 56 million US dollars. A highlight of this system is its efficient processing power, capable of matching and settling up to 200,000 orders per Bitcoin block. This efficient matching and settlement mechanism not only provides an instant confirmation experience, but also ensures transaction security.
With this advanced technology, Alex Labs’ OrderBook/perpetual DEX is 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 teamed up with Domo, BIS, Hiro, UniSat, Xverse and Xlink to jointly develop and release 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 addition to the capabilities of the original Bitcoin blockchain, 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 functionality of smart contracts, this oracle effectively overcomes the limitations of the Bitcoin blockchain in processing complex transactions.
Key features of the Alpha version include:
BRC20 transfer and balance verification: The oracle utilizes a smart contract-based consensus mechanism to verify transactions and balances of BRC20 tokens through major players such as BIS, Hiro, and UniSat. This method 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 on various indexer performance. 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 functions, 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 Launchpad" provided by Alex Labs is a platform for the initial decentralized exchange offering (IDO) of new project tokens. The platform allows users holding $ALEX and $atALEX tokens to vote on new projects being launched. Once a project is approved, Launchpad determines its launch date and fundraising goals.
Participating in an IDO on Launchpad requires so-called APower, a type of equity earned by participating in liquidity mining or staking Alex Labs’ original token ALEX. APower is actually a symbol of power, which determines the user's ability to participate in new projects IDO on Launchpad.
Currently, Alex Labs has five different pools. By participating in these pools, users can not only obtain ALEX tokens, but also APower. The more APower a user holds, the greater proportion of the allocation they receive on Launchpad. This means that more APower can increase a user’s share of the new project’s token distribution.
Alex Launchpad is designed to incentivize users to participate in the platform’s ecosystem while also providing a reliable launch platform for new projects.
Analysis of $ALEX’s token economic model: 64% of tokens have been circulated in the market, and the remaining 36% have become unstable factors
Alex Labs’ native token $ALEX plays an important role in its platform. As a necessary condition for participating in Alex Labs platform activities, $ALEX is also a reward medium for users to provide liquidity and pledge to the platform.
Regarding the economic model of the $ALEX token, its 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% allocated to the foundation: This part 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% is allocated to employees, consultants, early investors and founding teams: 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 the active participation of the community, helping to build a healthy and active ecosystem.
The financial ecology 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 various DeFi applications, including decentralized exchanges, lending platforms, and liquidity mining. Bitcoin DeFi, which was originally a small player in the field, now has the potential to grow exponentially and even compete with Ethereum. This transformation 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 leverage 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 the financial backbone of Bitcoin. 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 look forward to more diversified investment opportunities.
Overall, the rise of ALEX Labs and its becoming part of the Bitcoin financial layer represents a transformation in the DeFi world, and it is hoped that this transformation will bring more convenience to investors.
