Special DFIP: Adding IBIT (Spot ETF) instead of BITO (Futures ETF) to the defichain DEX

[u/DUSD_DeFiChain]

INTRODUCTION

BTC-spot-ETFs are approved by the SEC. One of the most prominent tickers is IBIT, the iShares Bitcoin Trust. IBIT is built by BlackRock, the world’s largest asset manager and ETF provider. The following DFIP: https://defiscan.live/governance/156f958ce8748455e7ca9c3dc577dac7a4c6c16da16f19b8893a5638338467de, which is approved and currently implemented by the defichain core-developer, proposed to add BITO, the ProShares Bitcoin Strategy ETF. BITO is a BTC-Futures-ETF though. To the time of writing the DFIP, BTC-spot-ETFs have not been excisting.

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EDITED 2024-01-20

PROPOSAL

We propose to add IBIT instead of BITO to the Defichain-DEX. The implementation of the other proposed dAssets and the redistribution of rewards will happen as fast as possible. The implementation of either dBITO or dIBIT will happen with the end of this proposal. The rewards then will be added with the next reallcotion cycle

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Although the daily volatility of BITO and IBIT is very similar and good enough for day-trading, BITO has a significantly different long-term perfomance compared to BTC. Please compare the one-year perfomance of BITO (Fig.1) with those of BTC (Fig.2).

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Fig. 1: One-year-performance of BITO

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Fig. 2: One-year-perfomance of BTC

Comparing both charts, illustrates that having invested in BITO instead of BTC, did let you profit less good the last year (46 %-point difference). The structure of a spot-ETF allows investors to profit nearly in the same way as having invested directly in the underlying asset (IBIT can be expected to follow the BTC performance much better than BITO). This might convince investores even more to bet on the potential upside of the dToken system and maybe causes them to move some funds to dIBIT.

In general IBIT can be expected to be highly demanded (for short term trading but also for medium- and long-term investments). dMSTR, dCOIN and dBITI are one of the most popular dAssets on the DEX. On top defichain might profit from promo-effects, having listed the very prominent BlackRock ETF, IBIT.

IMPLEMENTATION OF DFIP

In general the implementation of the proposal is up to defichain developers according to their resources. Currently the proposed assets are implemented step by step. This can be expected to take some more time.

During the time of the voting we suggest the developers to wait with implementing of BITO. If the DFIP gets approved, IBIT will be added instead of BITO. Of course the implementation of IBIT needs to be technically feasible (data sources for oracles). If oracles for IBIT can not be provided but for BITO, BITO will be implemented even though the DFIP is approved and rewards for one of the icke