The problem Bhokaal solves

The Bhokaal team passionately recognizes a pivotal challenge in today's DeFi landscape: the untapped pressure of onchain liquidity. Despite the emergence of innovative liquidity solutions in recent years, such as lending, staking, and various yield-generating strategies, we now face a bottleneck.

Our meticulous analysis of the current liquidity models has unveiled several critical insights:

1. Significant Onchain Liquidity Remains Untapped: A considerable portion of onchain liquidity is lying dormant. For instance, at Compound, only about 60% of Ethereum is actively utilized. Similarly, on other platforms, a vast majority of assets remain largely underused, indicating a substantial reservoir of idle capital.

2. Security Concerns Deter Asset Movement: Users often exhibit reluctance in transferring their assets across different apps or blockchains. This hesitation predominantly stems from concerns regarding the security of their assets during such transfers, reflecting a trust deficit in the cross-platform asset movement.

3. Prohibitive Gas Fees: The cost of moving assets, whether it's between platforms or engaging in diverse investment strategies, is exacerbated by high gas fees. This financial barrier further discourages users from optimizing their asset allocation, thereby contributing to the liquidity crunch.

Solutions

Bhokal is set to revolutionize the DeFi space by harnessing the capabilities of the ERC standard through an innovative wrapped plugin. In our hack, the team is excited to unveil a series of groundbreaking implementations, each designed to significantly enhance the dynamics of digital asset management:

1. Onchain Hyperbole Shared Liquidity (HSL) Model:
2. Leveraging BTC Liquidity with the Power of DeFi via Zetachain:
3. Empowering Tokens Without Physical Transfer via Wrapped Plugin:

Challenges we ran into

Solution:

1. The Onchain Hyperbole Shared Liquidity (HSL) model revolutionizes token usage across various platforms. Currently, most Ethereum tokens are concentrated in Compound, leaving other DeFi protocols underutilized. With HSL, a user's 1,000 USDT can be distributed across four platforms, leveraging the full 1,000 USDT even though only 25% is actively used on average. When all four platforms demand 1,000 USDT simultaneously, the HSL ensures the user gets the best price. While it appears as if the user provides liquidity equivalent to 4,000 USDT, only the original 1,000 USDT is utilized in actual transactions. This innovation is facilitated by a wrapped plugin for ERC-20 tokens, enhancing their efficiency and utility within the DeFi ecosystem.

2. The Bhokal dApp leverages the power of DeFi through Zetachain to optimize BTC liquidity. It allows BTC users to deposit their assets directly from their wallets, converting them into ZRC format via Zetachain. This conversion enables engagement in various DeFi activities like staking and lending across multiple platforms.

One significant advantage is the system's flexibility, allowing users to withdraw their funds at any time, with withdrawals processed back into their BTC wallets as BTC. This ensures both liquidity and freedom, without a fixed lock-in period for BTC.

3. The wrapped plugin offers a risk-free investment opportunity, allowing users to delegate token power without transferring them physically. It empowers users by enabling lending and staking in various DeFi platforms without direct asset transfers. Assets are wrapped into ERC20 tokens, usable across different pools without actual transfers. An added benefit is enhanced security: in the event of a breach or hack at any engagement pool, users can quickly withdraw their original assets, adding a layer of safety to ensure asset security in adverse situations.