Our secret sauce for self sovereignty & enhanced liquidity
Last updated
Last updated
ChainKeyX is built on the Internet Computer specifically to leverage the uniqueness of Chain-Key cryptography that gave birth to ckBTC and ckETH. More details can be found here on the Dfinity page. Essentially, this allows a digital twin of Bitcoin and Ethereum assets to exist on the ICP blockchain without using a custodian or centralized party for bridging the assets from their native chains onto ICP for low cast on-chain transactions be it swapping, borrowing or lending.
One of the core functions of traditional banks is the money multiplier effect on the modern economy. Every $1 deposited in the bank translates into >$1 in terms of loans out in the economy. This multiplier is governed and enforced by central banks of each country and loans are given out to their customers via the judgment of the bank officers. At ChainKeyX, we achieve a similar effect using smart contracts with zero human intervention for the DeFi ecosystem. When 1 ckBTC is deposited into the fixed deposit, the depositor receives an equivalent 1 d.ckBTC (assuming no lock up) that is tradable, usable in liquidity pools and earns yield. At the same time, the 1ckBTC in the vault is lent out to a borrower.
This way, 1 ckBTC of deposit translates to ~1.55 worth of ckBTC back into the ecosystem. The borrower can add the borrowed 0.55ckBTC to the liquidity pool or deposit vault to earn fees, trade it, bridge to a CEX or use it in other DeFi apps.
