From cointelegraph by Josh O'Sullivan
EverValue introduces Bitcoin backing in DeFi with EVA to create new standards of valuation and establish predictable growth in an unpredictable space.
Decentralized finance (DeFi) cracks the door open for opportunities otherwise inaccessible in traditional finance (TradFi). However, for investors looking to put their Bitcoin into use, DeFi landscape presents challenges. Most DeFi projects require investors to deposit BTC on centralized platforms, offering minimal returns and exposing them to operational risks.
In a market often characterized by high volatility and opaque tokenomics, DeFi users find few options that provide utility for their BTC assets. A new approach to DeFi is taking place, combining the stability of Bitcoin backing with the potential of blockchain technology through transparent and secure value mechanisms.
EverValue is a DeFi project built on the Arbitrum network. The project integrates Bitcoin and its stability into the DeFi space, offering predictable and secure growth.
EVA token is at the core of EverValue’s system. The token operates with a Bitcoin-backed “Burn Vault” designed to establish and maintain a steady but rising minimum price. BTC can only be withdrawn from the Burn Vault by burning EVA tokens, and this mechanism ensures EVA maintains a value parallel to Bitcoin. Users can store the token in their own wallets with no need for staking or lockups.
EverValue achieves stability through a capped token supply of 21 million tokens — as an effort to embed scarcity into its tokenomics model — and a burn mechanism to further increase scarcity and drive long-term stability.
The Burn Vault operates on a smart contract that aims to increase the token’s price floor daily for stable and predictable valuation. Receiving deposits of wrapped Bitcoin (wBTC), the vault secures a constant minimum value for EVA token. This system currently holds over 110 wBTC and grows by about 0.3 BTC daily from Bitcoin mining operations and token sales, ensuring continuous price floor appreciation and a dependable value base for investors.
Another key feature of the EverValue ecosystem, the whale-proof mechanism, limits the influence of large token holders. The daily increasing price floor safeguards against market volatility while ensuring stable value without the influence of large holders, creating a more balanced environment for all participants. This is achieved thanks to the burn mechanism, which allows BTC withdrawals only by burning EVA tokens in the same proportion. Keeping the proportion of circulating EVA to wBTC backing the same ensures the burn price remains unaffected by the transaction.