What is the Bitcoin Accumulator?

The Bitcoin Accumulator is the first DeFi 2.1 protocol. The protocol captures market inefficiencies between the pricing of Bitcoin (BTC) and Wrapped Bitcoin (wrBTC), and shares these profits with its Bitcoin Accumulator token (BTCA) holders.

The Bitcoin Accumulator features three main types of tokens:

(1) The asset we are trying to accumulate: Bitcoin (BTC)

(2) A wrapped and backed version of that asset: wrapped Bitcoin (wrBTC)

(3) And our accumulator token: BTCA

The key mechanisms of the Bitcoin Accumulator are:

(A) Profiting from the underlying asset’s inefficiency. The protocol is designed to capture market inefficiencies between BTC & wrBTC, capturing arbitrage as a source of value.

(B) Utilizing a Dynamic Profit Distribution mechanism. The protocol only mints new tokens when it makes a profit. The profits are distributed in real-time and the profits are represented by the Accumulator Index.

(C) Adding a delay to reduce selling pressure. To mint our BTCA token, users can instantaneously upgrade their wrBTC. However, if they wish to get their wrBTC back, there will be a downgrade delay. This means in order to purchase attractive bonds immediately, users will need to use fresh funds for the purchase.

(D) Having a strong, ever-increasing backing value. Unlike DeFi 2.0 projects, our treasury will not keep our own tokens (wrBTC and BTCA). The treasury will only hold BTC as the sole asset. Additionally, since new token emissions are based on profitability, emissions will never cause the backing to decrease.

Find out more:

DeFi 2.1 Explainer Video - https://youtu.be/eNVjjmLyiOw

White Paper: https://docs.player2.world/press-kit/white-papers