米罗（🌱）

@TimDraper , Zest lets users lock BTC in a vault and access assets on other chains. #CRC20 aims to go a step further: bringing the entire DeFi mechanism directly onto Bitcoin L1. BTC → Taproot vault → AXBT debt → $LEAF/AXBT AMM → on-chain liquidity. Pre-signed exits. Taproot scripts. CSV timelocks. No new opcode. No soft fork. Not just using Bitcoin as collateral for DeFi elsewhere, but building DeFi around BTC, directly on Bitcoin. ▶️ crc.garden | crc20.org ▶️ @tap3leaf @leaf_btc

From BTC to AXBT: Non-Custodial Liquidity Through Soft Covenants on Bitcoin L1 Bitcoin is excellent collateral. The challenge is putting it to work in DeFi without handing it to an intermediary or moving it off Bitcoin. #CRC20 explores an approach built around Taproot vaults, $AXBT debt and $LEAF, its native utility token, designed to support its Bitcoin L1 DeFi ecosystem and liquidity mechanisms. 1. Opening an AXBT Vault (CDP) The user locks BTC in a Taproot vault and chooses a term that determines the CSV timelock and influences the amount of AXBT that can be issued. The position is overcollateralized: - BTC collateral exceeds the AXBT debt. - Longer terms require higher collateral ratios, approximately 110%–150%. BTC remains on Bitcoin L1, inside a UTXO governed by specific spending conditions. 2. Vault Architecture The funding transaction creates: - A Taproot output holding the net collateral. - Exit tickets for the owner and liquidation. - A CRC-20 marker identifying the vault-opening operation. Two exit transactions are prepared in advance: - Owner exit: the owner repays the debt to recover BTC. - Liquidation exit: after the specified delay, a third party can repay the debt and use the liquidation path. Once validated, the CRC-20 ledger credits AXBT and records the debt. BTC remains locked until a valid exit is confirmed. 3. AXBT Is Debt, Not Wrapped BTC AXBT is a debt token backed by BTC collateral, not simply wrapped BTC. - Recovering BTC depends on repaying the debt. - Auxiliary outputs from the funding transaction are excluded from the net collateral calculation. - The CRC-20 application layer tracks AXBT balances and debt. 4. The LEAF/AXBT Pool AXBT can be used in the LEAF/AXBT pool, a constant-product automated market maker (AMM). The pool holds LEAF and AXBT reserves. Each swap: - Charges a 1% fee on the input token, allocated to liquidity providers. - Calculates the output using the reserves and effective input amount. The pool price depends on the reserve ratio. It does not guarantee a BTC redemption price. 5. Liquidity Positions Liquidity providers deposit $LEAF and AXBT according to the pool ratio. At maturity, settlement may return their share of the reserves and accumulated fees. The amounts returned may differ from the original deposit as the reserve ratio changes. Returns are not guaranteed and depend on trading volume and pool activity. 6. Closing the Vault There are two main paths to recover BTC: - Owner exit: repay the full debt and use the prepared exit transaction. - Liquidation exit: after the specified delay, a third party repays the debt and uses the liquidation path. The first valid spend confirmed on Bitcoin wins. The indexer finalizes the debt settlement only after verifying the confirmed exit. Issuing AXBT does not allow unrestricted access to the locked BTC at any time. 7. What Are Soft Covenants? CRC-20 uses Taproot scripts, pre-signed transactions and CSV timelocks to constrain spending paths. Bitcoin verifies signatures, scripts, timelocks and UTXO spending under its existing consensus rules. This approach requires no new opcode or Bitcoin soft fork. Two layers work together: - Bitcoin consensus layer: signatures, scripts, timelocks and UTXOs. - CRC-20 application layer: AXBT debt tracking, swap calculations and liquidity settlement, supported by the indexer and client-side verification. Bitcoin enforces on-chain spending conditions, while CRC-20 handles application-level accounting. The Complete Flow BTC locked in a Taproot vault → AXBT issued as overcollateralized debt → AXBT circulates through the CRC-20 ledger → $LEAF/AXBT liquidity pool → Potential fees for liquidity providers → Debt repayment → BTC recovered through an authorized exit path BTC remains the on-chain collateral. CRC-20 explores new financial mechanisms on Bitcoin L1 without moving the collateral off the Bitcoin blockchain.