The upcoming BRC20 cross-chain protocol, Shell Trade, provides a two-way bridge between Bitcoin and the Solana network. This article will provide a detailed explanation.
In recent months, BRC20 tokens, represented by scripts, have gained significant market attention. However, while the BRC20 market size is rapidly growing, its development is largely limited by infrastructure shortcomings.
Currently, the construction of BRC20 infrastructure has become a hot topic of market concern and effort. For example, the upcoming public offering of the BRC20 cross-chain protocol, Shell Trade, is aiming to enhance Bitcoin infrastructure by seamlessly integrating liquidity between Bitcoin and the Solana network, potentially unlocking new narratives for BRC20 liquidity.
As a “new species” in the Bitcoin ecosystem, although BRC20 has experienced a brief downturn, its growth momentum is now very strong due to increasing recognition of this asset. According to data from OrdSpace, as of January 10th, there have been over 37,000 BRC20 tokens created in the market. Additionally, data from Dune shows that as of January 10th, the total minting volume based on the Ordinals protocol has exceeded 54 million tokens, generating a fee of over 5,478 Bitcoin, equivalent to around $250 million.
While the popularity of BRC20 assets is increasing, factors such as transaction speed and the inability to interact with smart contracts significantly limit the efficiency and practical utility of these assets. Compared to Ethereum and other platforms that already have relatively mature infrastructure, Bitcoin’s infrastructure is weak, which hinders the effective release of BRC20 liquidity.
As an essential need for user asset transfers, cross-chain bridges are believed to play a crucial role in the long-term development of the Bitcoin ecosystem. Shell Trade is the first bilateral bridge designed specifically for easy cross-network transfers between Bitcoin and Solana within BRC20 tokens, aiming to facilitate the transfer of liquid assets and increase interoperability.
Specifically, Shell Trade allows users to seamlessly connect BRC20 assets with Solana, supporting the transfer of Bitcoin scripts, Ordinals, and BRC-20 tokens to Solana. Users can then utilize Solana’s mature DeFi ecosystem for activities such as trading, lending, and mining, combining the liquidity of Bitcoin with the innovative and user-friendly environment of Solana.
In the past few months, Solana has made a strong comeback as a high-performance blockchain platform, gaining attention for its cost-effectiveness and higher availability. In addition to its active on-chain activities, the on-chain ecosystem of Solana continues to thrive, even becoming the third-largest public chain by market value. The technical advantages and popularity of Solana, combined with the booming Bitcoin ecosystem, will provide more opportunities for Shell Trade.
However, while cross-chain bridges help improve asset liquidity for users, the increasing frequency of security incidents has made users pay more attention to asset security. To address this, Shell Trade enhances its security through three measures: smart contract security, multi-signature mechanism, and real-time monitoring and risk management.
Shell Trade is preparing to launch its initial DEX offering (IDO) in mid-January 2024. According to Shell Trade’s token economics, the total supply of its native token, $SS20, is 1 billion tokens, with 65% allocated for the public sale. Based on the IDO participation rules announced by the official, users can participate through whitelist and public sale methods. During the whitelist phase, users can earn an allocation of $300 by completing relevant tasks (there are currently community activities). The public sale may adopt a first-come, first-served (FCFS) approach.
According to public information, the IDO price for $SS20 is $0.0015, with a total fundraising amount of $975,000. All tokens will be unlocked during the Token Generation Event (TGE), with a fully diluted valuation (FDV) of approximately $1.5 million. Considering the exponential growth of FDV for other cross-chain bridge projects such as MultiBit and SoBit, Shell Trade, as another player in the same field, may have significant potential.
As a “rising star,” Shell Trade has already established partnerships with Serafund and OKX. Serafund is an investment institution that has invested in well-known projects such as NEAR Protocol, ZKX, Magpie Protocol, and SHRAPNEL.
It is worth mentioning that Shell Trade plans to expand its support for BRC20 protocols, including Atomical and BRC100. Additionally, Shell Trade’s official announcement revealed that they will launch an exclusive NFT series in the future, providing privileges such as airdrops and fee reductions for token holders.
In conclusion, with the continuous addition of infrastructure projects like Shell Trade, BRC20 assets are expected to bring higher capital efficiency and more application scenarios, thereby promoting their widespread adoption, attracting more participants, and effectively driving the long-term development of the Bitcoin ecosystem.
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