Exploring the New Prospects of Various Functional Platforms in the Ordinals Ecosystem | veDAO Research Institute

As BTC rises, the BTC ecosystem is becoming increasingly prosperous. A previous article by veDAO reviewed the DeFi projects in the BTC ecosystem market titled "The BTC Ecosystem Flourishes: A Review of New DeFi Opportunities | veDAO Research Institute." In this article, we continue to focus on the BTC ecosystem, this time concentrating on the various functional markets of Ordinals.

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NxHub

With the widespread popularity of BRC-20 assets, there has been a gap in the infrastructure and tools to meet the needs of Ordinals ecosystem traders in the short term. NxHub was born out of this need, following its IDO on TurtSat last month.

NxHub is an aggregation market based on Ordinals, which captures listing order data from platforms such as UniSat, OKX, MagicEden, and OrdinalsWallet and displays it in an aggregated manner. Users can choose orders listed on multiple platforms and send requests to the corresponding market based on their selections, simplifying the ordering process. This allows for multi-platform price updates, cancellations, and more. NxHub aims to integrate more Ordinals asset information, so traders no longer need to repeatedly compare prices across platforms. By accessing NxHub, traders can quickly obtain information on the hottest assets in the current market, reviewing price fluctuations, trading volume changes, and supply data of these assets to assist their investment decisions.

In addition to providing NFT trading, NxHub will also offer advanced features for bulk listing and bulk floor-sweeping transactions (purchasing multiple NFTs at the lowest price in one go). Traders can send order placements, cancellations, and other requests to the corresponding market based on their choices. By providing traders with more convenient bulk operations, NxHub simplifies the entire ordering process for ease of use. Additionally, NxHub will allow traders to add multiple BRC-20 tokens to their shopping cart, with the platform intelligently processing based on the trader's preferences and purchasing needs, packaging multiple UTXOs in the same block through technology, as illustrated in the flowchart below:

With the recent explosion of BRC-20 assets, including inscriptions from public chains like eth, bnb, pol, and sol, the prices of some of the earliest listed inscription tokens have also been rising. In this wave, an Ordinals trading aggregation platform is particularly necessary. Undoubtedly, the emergence of NxHub brings further prosperity to the BTC ecosystem, and with its first-mover advantage, it is expected to become the primary choice for BTC inscription traders.

Learn more: https://app.vedao.com/projects/b00468dabc8f75e02f194c5add9f05eefb97405c064d4f22c26c23faeb934297

Liquidium

NFTs can be said to be one of the key contributors to the prosperity of the Ethereum ecosystem, and thus the popularity of Ordinals this year is partly due to their significant meaning for the BTC ecosystem. Like NFTs, lending of Ordinals is also an important part of the BTC ecosystem. After all, NFT lending releases liquidity, thereby opening the door to ecosystem prosperity. Liquidium is the first Ordinals lending protocol in the BTC ecosystem.

Liquidium is a peer-to-peer lending protocol that operates specifically on the BTC chain. This innovative solution allows users to use native Ordinals as collateral to lend and borrow native BTC, eliminating the need for intermediaries or custodians. Transactions are conducted securely through partially signed Bitcoin transactions (PSBT) and discrete log contracts (DLC). Users can use borrowed BTC to purchase more Ordinals inscriptions or any other BTC ecosystem assets without needing to map their inscriptions to another chain, change wallets, blockchains, or platforms. Currently, Liquidium is only compatible with the Xverse wallet.

The mechanism of Liquidium is transparent and straightforward: first, the borrower applies for a loan by setting the desired loan terms and locking their Ordinals inscriptions as collateral. The lender then reviews the loan request and provides BTC to borrowers who meet the loan criteria, thus initiating the loan. If the borrower fails to repay the loan on time, the loan defaults, and the Ordinals inscriptions are transferred to the lender. To maintain fairness and security, Liquidium will utilize oracles to verify loan outcomes by checking on-chain activities, ensuring minimal trust issues and transaction transparency.

Learn more: https://app.vedao.com/projects/89c2ab7ba6178611e0dcc4bbf9dd987e867ab284df6bd3c14b206c56b13e2306

Liquidium vs. Blend

When discussing NFT lending, one cannot overlook the Blend lending protocol launched by Blur in May of this year. The main difference between Blend and Liquidium is that Liquidium primarily provides lending for Ordinals. There are also some subtle differences.

Blend offers both peer-to-peer lending and pool lending models, while Liquidium currently only has a peer-to-peer lending model.

Blend primarily targets three groups: 1. NFT collectors, who aim to gain ETH liquidity without selling their NFTs; 2. bottom-fishing traders, who hope to purchase blue-chip NFTs at extremely low costs; 3. airdrop players, who can earn airdrops by lending NFTs in addition to listing and bidding. For Liquidium, Ordinals holders correspond to the aforementioned NFT collectors. Currently, Liquidium does not have the functionality to purchase and aggregate Ordinals; the previously mentioned NxHub can fulfill this function. Liquidium has not yet released any information regarding airdrops.

With Liquidium, Ordinals owners can obtain liquidity without relinquishing asset ownership. This is an important step in NFT lending, specifically catering to the needs of Ordinals owners. By providing a P2P lending platform that uses Ordinals as collateral on the BTC mainnet, Liquidium also realizes BTC DeFi and enriches the BTC ecosystem. This protocol may reshape the lending landscape and open up new opportunities in the world of Ordinals.

Chamcha

Chamcha is a platform based on an Ordinals asset liquidity protocol, focusing on providing a secure and convenient environment for buying, selling, earning, and hosting NFT assets. It combines blockchain technology and smart contracts, merging traditional financial scenarios with the potential of cyclical and streaming NFT assets.

Chamcha also adopts the BRC-20 cross-chain protocol and has launched CHAX (Chamcha Token) to support the new cross-chain bridge. This new bridge aims to alleviate the congestion issues caused by excessive user withdrawal requests due to significant price differences between MEXC and on-chain. Currently, over 20 million CHAX tokens have been cross-chained to the Ethereum network. The total supply of CHAX tokens is 2,100,000,000, with a current market cap of $15.7M. CHAX plays a key role in managing the platform, incentivizing liquidity provision, offering staking rewards, and facilitating various activities and transactions within the Chamcha ecosystem.

Learn more: https://app.vedao.com/projects/b0aac9c4b7eedefa3b625853a47f43bfa23ea1d42f1552b066648498df2c3e0c

TurtSat

TurtSat is a project launch platform based on Ordinals, similar to Gitcoin in the Ordinals ecosystem. It supports open-source developers and community participation in the construction of the Ordinals ecosystem through the establishment of a basic PSBT donation protocol, allowing them to earn rewards. TurtSat is committed to creating a positive, community-driven Ordinals ecosystem and collaborates with influential organizations to promote the development of the Ordinals protocol and the Bitcoin ecosystem.

TurtSat has supported a bilateral market for both BRC-20 and ERC-20, allowing BRC-20 users to trade through Unisat and OKX. Since its launch, the TurtSat platform has launched a total of 4 BRC-20 projects, including the asset protocol CHAX, the cross-chain bridge MUBI, the Ordinals aggregation platform NHUB, and the Ordinals lending platform DOVA. These projects are early builders of BRC-20 infrastructure, and their prices have performed well after launch.

Learn more: https://app.vedao.com/projects/f008dc5f541fab60b93873d35f7b0b46701029417ce9cbee2360c4384bf56e8a

Conclusion

Recently, the momentum of development in the BTC ecosystem has been strong, with the price of the leading ORDI continuously climbing and various inscriptions emerging one after another, even drawing attention to inscriptions from various public chains. In this context, the demand for lending, aggregation, and other services in the BTC ecosystem has also become urgent. A protocol based on the theory of Ordinals—BRC-100—has also become a hot topic in the community, designed specifically to implement various decentralized applications on Bitcoin Layer 1. If BRC-100 achieves widespread adoption, the BTC ecosystem will enter a new explosive growth phase, and the various functional markets within the BTC ecosystem will become even more prosperous.

BTC is currently the largest cryptocurrency by market capitalization, and the emergence of Ordinals has opened a new chapter in the development of the BTC network and blockchain technology. The Ordinals protocol introduces new functionalities to BTC that have never been realized before, and as the underlying technology of BTC continues to evolve, we can expect new features to make inscriptions more efficient, secure, and versatile.

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