# INTRODUCTION ### **BitLen is built on the principle that liquidity should be universally available.** The platform's goal is to make liquidity universally accessible, serving not just DeFi participants but also protocols via 'Liquidity Hooks.' A primary obstacle for DeFi protocols today is securing initial liquidity and maintaining a steady supply to facilitate expansion. Access to liquidity in money markets is often a hurdle for many protocols, hindered by a lack of composability, which in turn limits their growth potential. As the DeFi ecosystem evolves to support a variety of borrowing scenarios, the structure of money markets has not kept pace. This forces protocols to seek liquidity on their own, despite its scarcity. As a result, protocols allocate a substantial portion of their native tokens to incentives for liquidity procurement. This method is not sustainable over the long term and results in the dispersion of liquidity. To address this challenge once and for all, emerging protocols require the capability to effortlessly mesh their applications with a substantial pool of liquidity—a money market ally that gives priority to composability, soon to be available on Core,BsquaredNetwork & Bitlayer. ### BitLen operates as the essential liquidity foundation for DApps, crafted to encourage the development of Liquidity Hooks by DApps. * **Lenders:** benefit from elevated lending APRs as BitLen's collaborative partners utilize liquidity and broaden BitLen's user base. * **Borrowers:** gain access to Liquidity Hooks established by DApps, enabling them to pursue various yield strategies through BitLen’s comprehensive dashboard. # How Deposit Works How to Deposit BTC and ETH on BitLen. To deposit BTC on BitLen, you have to swap asstes to BTC Layer2 we deployed by Bridge

How Deposit Works

After connected wallet,tranfer assets 1. **Choose the assets** that you want to deposit, You can add multiple assets at once. 2. Click **"Approve"** and do the wallet signature to each asset. 3. Click **"Open Position"** and complete the deposit. # Lending APR BitLen Token holders receive continuous earnings depending on market conditions based on: 1. Lending pool utilization: Higher utilization means liquidity in the pool is more scarce, which leads to higher APR 2. Borrowing interest: Lenders share the interests paid by the borrowers corresponding to the borrowing rate and the utilization The lending APR is derived as: `Lending APR = Utilization Rate * borrow_interest_func(utilization) * (1 - reserve_factor)` * where the `borrow_interest_func` is the double-slope interest rate model and `reserve_factor` is the protocol fee * Each asset has its own market supply and demand with its own lending APR that constantly evolves. # Bitcoin Layer2 # on Core ### **Major Assets** * coreBTC * core ### Stablecoin * USDT # on B² Network ### **Major Assets** * BTC ### Stablecoin * USDT * USDC # on Bitlayer ### **Major Assets** * BTC # Borrow Cap The Borrow Cap represents the maximum token amount that users can borrow from each BitLen lending pool. It is mostly determined by the circulating supply of tokens within the chain. ## Why is this important? It serves to prevent situations where borrowed tokens cannot be repaid, often resulting from liquidation. This is because liquidators would need to exchange the borrowed tokens for collateral tokens. # Borrowing BTC **How to Borrow BTC** BitLen is the first Decentralized Finance (DeFi) that allows users to lend native Bitcoin (BTC) and borrow Ethereum-based (ERC-20) tokens, and vice versa. Experience *multichain lending and borrowing* for the first time on DeFi, implemented with Optimistic BTC Lending. We ensure maximum security and the best user experience.

Borrow on BitLen

**Deposit BTC, Borrow ETH (or ERC-20 tokens)** Once you have deposited BTC, you can start borrowing Ethereum-based (ERC-20) tokens against BTC collateral. Then, start leveraging the borrowed Ethereum-based tokens to earn even more BitLen token rewards. Click 'Borrow' and enter the amount to borrow. It will take some time for BitLen to process BTC borrowing as it verifies with several confirmations to securely process the multichain transaction. Once complete, the borrowed asset can be found in your wallet. **Deposit ETH (or ERC-20 tokens), Borrow BTC** You can also deposit Ethereum-based (ERC-20) tokens to borrow BTC. Then, start leveraging the borrowed BTC to earn even more BitLen token rewards. Click 'Borrow' and enter the amount of BTC to borrow. It will take some time for BitLen to process this as it verifies with several confirmations to securely process the multichain transaction. # Health Factor The Health Factor is a numerical value that indicates the safety of your position from its liquidation point. A higher value indicates a healthier position, and thus, greater safety against liquidation. If the Health Factor drops to 1 or below, liquidation is triggered. The calculations are as follows: Health Factor = Collateral Credit / Borrow Credit
Where * **Collateral Credit:**
* **Borrow Credit:**
#### Collateral and Borrow Factors Note: Collateral Factor should be <= 1, Borrow Factor should be >= 1 # Minimal Liquidation The users must ensure that the health factor of their position remains at or above 1. If the health factor drops below 1, a liquidator has the power to initiate the liquidation process and obtain the During the partial liquidation process, the liquidators have the flexibility to: * Identify the specific borrowed tokens and the amount to be repaid to BitLen. * Choose the collateral tokens to receive along with the liquidation premium. BitLen will calculate the amount of collateral tokens and the liquidation premium that the liquidator will receive. **Dynamic Liquidation Premium** The incentive for liquidation rises in direct proportion to the decline of the health factor. As the risk associated with a position's health escalates (indicated by a falling health factor), liquidators are further motivated to act promptly to liquidate the position before it becomes insolvent. A position's liquidation premium is influenced by several determinants: * Health Factor * Mode Liquidation Factor * Token Liquidation Factor (applicable to both the collateral and the borrowed token) The liquidation factor for stable tokens is the lowest, while major tokens carry a medium factor, and the most volatile tokens bear the highest factor. Modes that are pegged, such as stable and LST modes, are assigned lower liquidation factors. The formula for calculating the liquidation premium is as follows: **Premium Calculation Formula** `Premium = (1 / health factor - 1) * mode_factor * max(borrow token liquidation factor, collateral token liquidation factor)` **Liquidation Health Factor Threshold** Liquidators are permitted to carry out liquidations until the health factor reaches a mode-specific maximum cap. This restriction is designed to regulate the volume of borrowed tokens that a liquidator is authorized to repay, thereby limiting the premium that the owner of the position must surrender to the liquidator. # Debt ceiling The Borrowing Cap establishes a maximum threshold for the quantity of tokens that can be borrowed under a particular mode from the lending pool. This cap serves to confine and segregate the exposure of lenders to risk, particularly in scenarios where a token's value diverges from its associated assets. # Oracle * RedStone Oracles Bitlen Finance uses RedStone Oracles as the primary solution for asset pricing. [RedStone](https://redstone.finance/) is a Modular Oracle that delivers frequently updated, reliable, and diverse data feeds in a few models. Bitlen utilizes [Classic](https://docs.redstone.finance/docs/smart-contract-devs/get-started/redstone-classic) model which ensures that data is pushed into on-chain storage via a relayer with set conditions. (heartbeat and deviation threshold)
# Flash Borrow(Soon) Flash borrowing is an enhanced, more flexible variant of the flash loan mechanism. Instead of the traditional requirement to post collateral upfront to maintain a healthy borrowing position, users are able to: 1. Take out a loan in tokens, 2. Employ those tokens for various operations within supported protocols, 3. Then provide collateral to secure the health of the borrowing position, and all these steps are executed within a single transaction. This process enables users to borrow asset A to engage with supported protocols and then use asset B as collateral, thereby optimizing composability. As a result, this streamlines the process of creating and adjusting positions, reduces the complexity of transactional loops, and cuts down on gas expenses. # Social Media #### Twitter [https://twitter.com/bitlen\_finance](#twitter) #### Discord: {% embed url="" %} #### Telegram {% embed url="" %} #### Official Website {% embed url="" %} #### Testnet {% embed url="" %} **Medium** {% embed url="" %} # Media Kit Prohibition of use to the extent not permitted

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# Audit BitLen always puts the safety of its users' assets in the first place ### **Audited** * ExVul **Ongoing contractual audit** * Salus * PeckShield **Code reviewed by** * B² Network * Bitlayer * Core # Developer Docs Update soon # Terms of Use ### Introduction Welcome to BitLen ("BitLen", "we", "us", or "our"). BitLen offers a decentralized finance platform and related services (collectively, the "Services") which are accessible through our website located at [www.bitlen.io](http://www.bitlen.io) & testnet.bitlen.io (the "Site"). These Terms of Use ("Terms") govern your access to and use of the Services provided by BitLen. By registering for, accessing, browsing, or using the Services, you acknowledge that you have read, understood, and agreed to be bound by these Terms. If you do not agree to these Terms, you may not access or use the Services. ### Eligibility To access or use the Services, you must be able to form a legally binding contract with BitLen. Consequently, you must be at least 18 years old or of legal age to form a binding contract in your jurisdiction if that age is greater than 18 years of age. ### Use of Services BitLen grants you a limited, non-exclusive, non-transferable, and revocable license to use the Services subject to the terms and conditions of these Terms. #### Prohibited Activities You agree not to engage in any of the following prohibited activities: 1. Copying, distributing, or disclosing any part of the Services in any medium, including without limitation by any automated or non-automated "scraping"; 2. Using any automated system, including without limitation "robots," "spiders," "offline readers," etc., to access the Services; 3. Transmitting spam, chain letters, or other unsolicited email; 4. Attempting to interfere with, compromise the system integrity or security, or decipher any transmissions to or from the servers running the Services; 5. Taking any action that imposes, or may impose at our sole discretion an unreasonable or disproportionately large load on our infrastructure; 6. Uploading invalid data, viruses, worms, or other software agents through the Services; 7. Collecting or harvesting any personally identifiable information, including account names, from the Services; 8. Using the Services for any commercial solicitation purposes; 9. Impersonating another person or otherwise misrepresenting your affiliation with a person or entity, conducting fraud, hiding, or attempting to hide your identity; 10. Interfering with the proper working of the Services; 11. Accessing any content on the Services through any technology or means other than those provided or authorized by the Services; 12. Bypassing the measures we may use to prevent or restrict access to the Services, including without limitation features that prevent or restrict use or copying of any content or enforce limitations on use of the Service or the content therein. ### Account Security You are responsible for safeguarding the password that you use to access the Services and for any activities or actions under your password. BitLen cannot and will not be liable for any loss or damage arising from your failure to comply with the above requirements. ### Intellectual Property Rights All rights, title, and interest in and to the Services (excluding content provided by users) are and will remain the exclusive property of BitLen and its licensors. ### Termination BitLen may terminate or suspend your right to use the Services without notice if we believe that you have breached these Terms. ### Disclaimer of Warranties The Services are provided on an "as is" and "as available" basis. BitLen makes no warranties, expressed or implied, and hereby disclaims and negates all other warranties, including without limitation, implied warranties or conditions of merchantability, fitness for a particular purpose, or non-infringement of intellectual property, or other violation of rights. ### Limitation of Liability In no event shall BitLen, nor its directors, employees, partners, agents, suppliers, or affiliates, be liable for any indirect, incidental, special, consequential or punitive damages, including without limitation, loss of profits, data, use, goodwill, or other intangible losses, resulting from your access to or use of or inability to access or use the Services. ### Changes to Terms BitLen reserves the right, at our sole discretion, to modify or replace these Terms at any time. If a revision is material, we will provide at least 7 days' notice prior to any new terms taking effect. What constitutes a material change will be determined at our sole discretion. ### Contact Us If you have any questions about these Terms, please contact us at our Discord. By using BitLen's Services, you acknowledge that you have read these Terms of Use and agree to be bound by them. \[Date of last revision: April 21 ,2024]