What is $BTCX

$BTCX is a synthetic Bitcoin asset issued by Shell Finance based on the Runes Protocol. Through the lending protocol, 1 $BTCX is pegged to 1 $BTC. When users collateralize their inscription assets to borrow, a certain amount of $BTCX will be created and transferred to their account. When they decide to repay the loan, $BTCX will be transferred and burned back to the protocol account.$BTCX will have utility in the following scenarios:

• Instant conversion to $BTC: Building BTC/BTCX trading pairs on platforms like UniSat-swap to exchange for $BTC through trading.

• Trading on exchange markets: Trading $BTCX for $BTC via limit orders on platforms such as OKX Web3 Wallet, UniSat, etc.

• Future Bitcoin Layer2: $BTCX has the potential to function as a synthetic asset across different Bitcoin Layer 2 solutions, establishing itself as a synthetic asset within Bitcoin Layer 2 ecosystems.

Does Shell Finance Charge Any Fees?

When borrowers initiate a lending position, they will be charged a one-time loan origination fee equal to 1% of the loan amount. This means that users will only receive 99% of the borrowed $BTCX amount on each borrowing occasion. For example, if Alice collateralizes $ORDI to borrow 1 $BTCX through Shell Finance, she will only receive 0.99 $BTCX, with the remaining 0.01 $BTCX being the loan origination fee charged by Shell Finance. Alice will need to repay 1 $BTCX to Shell Finance to unlock the collateralized $ORDI.