[Seeking-Feedback]<Bitsave Protocol>

Grant Proposals DeFi
#1

The savings protocol for web3 finance.

Project Name

[Bitsave Protocol]

Project Type

[ SaveFi, Defi ]

Proposal Description

[ Bitsave is a web3 savings protocol that helps users save and earn interest in Cryptocurrency without losing their savings to the crypto Market volatility.

We’ve seen newbies lose their savings like school fees, house rent, college funds etc to Crypto, we understand that people hear about crypto and want to immediately rush in.

With Bitsave, newbies and oldies alike can protect their funds from market volatility, while still earning interest in crypto, a protocol that works based on maths and economic formulas to set interest rates and pay interests.

HOW IT WORKS

  1. Users typically save in a Fiat-Backed stable coin (we don’t want a Terra situation :confused:)

  2. Users earn interest in a volatile token, typically the native token of the Bitsave Protocol.

  3. Users can create a savings plan and make unlimited deposits to their savings plan, e.g, “Rent, School fees, Vacation” etc.

  4. Users pay a $1 fee per savings plan they create, no charge on deposits, only a one-time fee on savings plan created;

WHAT HAPPENS IN THE BITSAVE PROTOCOL

  1. Users Create a Savings plan and deposit USDT or xUSD.
  • Users aren’t depositing into a pool like DeFi protocols which a hacker can get access to.
    What happens in the Bitsave Protocol is, when a user is creating a savings plan, they’re giving parameters for a child contract to be created under the Bitsave Protocol Parent contract which holds their funds.

This makes it such that every user’s savings deposit is tied to their wallet so that in case of an exploit, the hacker wouldn’t have access to user funds, except they have access to their wallet private keys, this minimises the risks of users losing their funds to exploits.

  1. Users’ Interests
  • Interests are calculated using a number of variables and constants in the algorithm;
    -Simple interest formula
    -Bitsave Rate formula.
    -Bitsave has a buy-back mechanism that buys
  1. Users’ Savings Plans and Fees
    Users are charged a 1-time savings fee on savings plan creation (child contract), every fee is split in a 50:50 ratio, where 1 part goes to a buy-back wallet to buy back the protocol native tokens from any AMM or Dex in the Iotex ecosystem depending on certain conditions we’ve programmed into the protocol.

CONCLUSION
Bitsave isn’t just another product, it’s a new value chain, The web 3 space is used to DeFi, and now we’re introducing them to SaveFi.

MVP (CONTRACTS DEPLOYED ON ALGORAND TESTNET)

MVP - Bitsave Protocol Demo

Bitsave Protocol Smart Contracts on Algorand Testnet
https://testnet.algoexplorer.io/address/BHGCG54R74BLIDMOCE5YWKYBPFQFWNRAQJKKYS544DXRA4USIZ6YZOCTE4

Milestones

[ verifiable deliverables]
Milestone 1: Iotex Contract integration

  • Dev Doc study and Smart Contract devleopment: 2 weeks
  • Testing and corrections: 1 week
  • Funds request (USD): 2,000 USD

Milestone 2: Front-End Developments

  • UI functionalities: 2 weeks
  • QuickNode payments and Integrations: 1 week
  • 3rd Party framework integrations; 1 week
  • Fund Request (USD): 3,500 USD

Milestone 3: Community test

  • Deploying on Iotex Testnet: 1 week
  • Incentivized Community test activity: 2 weeks
  • Fund Request (USD): 5,000 USD

Total funds requested

[ Total Funding amount requested in USD: 10,500 USD ]

Please checkmark the following if you agree

Although these options are not mandatory, please consider committing to them for the greater benefit of the IoTeX ecosystem.

  • We commit to open source the project: [ YES | NO | Other - please specify ]

  • We commit to stake [ AMOUNT ] IOTX on the IoTeX Blockchain: [ YES | NO ]

  • We commit to donate [ PERCENTAGE ] of [ OUR TOKEN ] to the IoTeX Foundation: [ YES | NO | N/A ]

About your Team

[ Karla Obakpolor: Founder Crypto Smart KarlaGod (KarlaGod) · GitHub, Xpan Victor: Back End dev xpanvictor (Xpan Victor) · GitHub ]

Metrics

[At least 10,000 in the First Quarter after launch.]

Links

[Pitch Deck]

=== Do not change this section ===

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https://community.iotex.io/t/grant-issuance-rules/3839

Community voting

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3 Likes
#2

Based on what I read ma about the product

A one time fee on the savings plan will be paid

So it means Bitsave isn’t really trying to make money out of this, why ma or the native token will sort things out ???

Also I noticed I didn’t see a feature on whether users funds will be locked and can be accessed anytime or whether there has to be a commitment bond :thinking:

From the look of things, it means this will be the usecase of bitsave token, interest from savings will be paid out in this token, will there be farming or staking ?

#3

What is the benefit Iotex community?

How will this reduce the amount of Iotex in circulation?

#4

Yes, a $1 one-time fee “Per Savings Created” is charged, users can create a savings plan for “Rent”, “School Fees” etc, it means for any new savings plan created, the user is paying a $1 fee. But users are not being charged based on deposit because no new child contract is being created.

Our revenue comes from the fees, so we do have revenue.

Users’ funds are locked in their own wallets through the child contract that only they can access, user funds won’t be deposited to a pool which gives hackers a single point of failure to exploit like in DeFi protocols.

Yes, users can access their savings anytime, but if they’re withdrawing their savings before the allocated time they stipulated maybe because of a life emergency, then a penalty fee (set by the user) is charged, that’s another way we have revenue. The commitment bond is usually set by the user as a penalty fee for when or if they break their savings.

Bitsave Token Use cases (Liquidity Injection from Bitsave Buy Back mechanism)

  1. Both web3 and web 2 utilities (Through partnerships)
  2. Farming, staking and other DeFi-related activities
  3. We have a GameFi plan set but that’d be later.
  4. TradFi activities
1 Like
#5

Bitsave protocol will be instrumental to reducing the amount of Iotex in circulation, here’s how:

  1. A percentage of the total supply of Iotex can be deposited and locked in the Bitsave protocol and the total supply and locked deposit are used as constants and prerequisites for calculating savers’ rates.

k = Constant Max supply of $IOTX which is 9,500,000,000

  1. A percentage of $IOTX can also be deposited into Bitsave Protocol reward pool and coded into the root formula, such that Iotex community users interact with Bitsave protocol and earn Iotex in return.

TS = Total supply of allocated reward pool of Iotex which will always be the percentage of the total Supply.

This will reduce the amount of $IOTX in supply and give Iotex community members more ways to earn $IOTX by participating in the Iotex ecosystem using Bitsave Protocol.

2 Likes
#6

Wow amazing working you are doing

Thanks for the reply, I understand better now.