What is Shell Finance

Shell Finance is a lending protocol operating on the Bitcoin Layer1 network. It allows users to utilize Bitcoin inscription assets (including Ordinals, Runes, Atomicals, Stamps, etc.) as collateral to obtain loans. Loans are disbursed as synthetic Bitcoin assets, $BTCX, issued by Shell Finance. Essentially, Shell Finance empowers users to leverage their assets and unlock liquidity without selling them.

Bitcoin operates on the UTXO model, which only supports peer-to-peer transaction modes. The Peer-to-Pool mechanism widely used on Ethereum cannot be implemented on Bitcoin. Therefore, Shell Finance has designed a unique peer-to-protocol lending mechanism where users borrow synthetic assets $BTCX directly from the Shell Finance Protocol, with Shell Finance acting as the borrower's counterpart. Unlike traditional lending protocols such as MakerDAO, Shell Finance charges borrowers a one-time loan fee instead of continuously collecting loan interest through floating interest rates. This makes interest-free instant borrowing possible and offers unique earning opportunities for inscription token holders. The lending process of Shell Finance is entirely decentralized, permissionless, and not controlled by any central entity. Shell Finance's mission is to enable any Bitcoin Inscriptions asset holder to obtain fair credit lines, fully unlock liquidity, and fill the BiFi (Bitcoin Finance) gap on the Bitcoin network.