BitMore
Undercollateralised StableCoin Based BTC Lending
Created on 16th May 2025
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BitMore
Undercollateralised StableCoin Based BTC Lending
The problem BitMore solves
Before Bitmore, people struggled with accessing Bitcoin through DeFi without locking in large amounts of capital. Traditional DeFi lending platforms required users to overcollateralize loans, making Bitcoin accumulation inefficient and inaccessible, especially for individuals or institutions with limited liquidity. This created a high barrier to entry to Bitcoin Ownership.
**BitMore **changes that by making Bitcoin ownership work like home ownership. It is a BTC acquisition vehicle that introduces under-collateralized, mortgage-style Bitcoin loans denominated in stablecoins. Borrowers can gain full exposure to Bitcoin with just 20% upfront capital, while lenders fund the remaining 80%. This structure democratizes BTC ownership, boosts capital efficiency in DeFi, and provides stablecoin lenders with safe, yield-generating opportunities, all without compromising asset security.
How It Works Currently
For Borrowers
- Bring 20% Downpayment in Stablecoins(USDC) upfront.
- Choose a Time Period & Associated Interest Rate.
- Get an 80% loan from stablecoin lenders. Bitmore uses the funds to buy cbBTC from UniSwap.
- Full cbBTC is "Owned" by you and is available for selling at any point, given borrower make pays EMIs on time. cbBTC stays in an escrow at this point.
- BTC becomes "transferable" monthly as you make payments as it moves from escrow to borrower wallet.
For Lenders
- Choose a time period for which lender is okay to lend USDC.
- Give approval for spending.
- USDC will be withdrawn from lender wallet only after a borrower is matched, earning interest from day 1 of wallet withdrawal.
- Receive monthly payments of Interest + Principal
- Lender's capital is currently protected through liquidation, in case if bitcoin price becomes equal to outstanding loan amount.
- In our next version, Lender's capital will be protected through an options purchase, which will be packaged as a Liquidation Insurance bought by the borrower.
For BitMore
- The cbBTC that is lent out, is held in AAVE earning interest for BitMore.
- We will enable late payment fees, loan originating fees and early closure fees once they are ready to go live.
What's Next for BitMore after Base Batch
- Liquidation insurance through options. We have modelled the cost for the same and have identified vendors.
- Add support to more more Stablecoins and BTC
- Variable interest through pools.
Summary - All Deployed Contract Addresses on Base Sepolia:
MockDeployer: 0x45dF8BF8Ed77Fe7c7549f85edc6ca085beF82D51
USDC: 0x377faBD7d29562c059Dd2D3A9C41eF6974d26B21
cbBTC: 0x905DFbD63Eb404E9A6A03B447c037EC7260478cF
AavePool: 0x044a1Caf72d89f67a4801bB77F858C9A2795b57A
SwapRouter: 0xb1c026CFce4478DaF34FD72cB8ac959e35823F21
LendingPool: 0xd8c555F728aCD2441a60e0da3f2591464f364C9c
Challenges we ran into
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There were modelling challenges to find out what's a good percentage of downpayment that balances borrower liquidation UX, without being too capital-intensive for downpayment.
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The idea itself is very novel, and we didn't really have references on how to solve structural issues, such as non-repayments if BTC price crashes. We introduced liquidations as step 1 and explored liquidation insurance through BTC Options as the next steps.
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Since there was no AAVE on base testnet, we had to deploy an AAVE contract ourselves.
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The time period for the loan and the rate of interest is still a work in progress, which needs to be modeled better.
Tracks Applied (1)
Stablecoins
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