Core Concepts

Indexed and Weighted Baskets

Bitflare's core innovation lies in its creation of indexed and weighted baskets of staked Bitcoin. These baskets consist of assets from various Bitcoin Staking Providers, each assigned a specific weight. This method allows Bitflare to balance the portfolio's exposure and optimize returns while minimizing risk.

Dynamic Weight Allocation

Each user has an internal vote weight, determined by the formula:

\[ \text{weight} = s \times \frac{t}{t + t_{\text{half}}} \]

where \( s \) represents the number of shares, \( t \) is the time in seconds, and \( t_{\text{half}} \) is the voting half-time. The platform rebalances these baskets every 30 days, aligning the portfolio with the latest market conditions and community preferences.

User Governance via Smart Contracts

Bitflare employs secure and transparent smart contracts that empower fBTC stakers to participate in governance. Users can vote on weight adjustments among different staking providers, influencing the platform's direction. After each voting cycle, the system automatically rebalances the baskets, reflecting the community's decisions.

fBTC (Flare BTC)

fBTC is the native token of Bitflare, representing a user’s share in the diversified staking basket. Highly liquid, fBTC can be traded both within and outside the Bitflare ecosystem. It also offers additional earning opportunities through staking, lending, and liquidity provision within Bitflare’s native markets.