We were delighted to welcome our guest from BTC Proxy. The AMA took place on May 24th, 2021 and our guests were @donnkim and @Jaytee_Fi !
The total reward pool was 500$ and was divided into three parts. In this AMA Recap we will try to summarize some of the most interesting points for you.
Part 1 — introduction and questions from the Telegram&Bitcointalk community
Маry Satoshi CLUB: Hello Satoshi Club! We are happy to announce our AMA session with BTC Proxy! Welcome to Satoshi Club😀
Paul Mont | Satoshi Club: Today’s guests are @donnkim and @Jaytee_Fi ! Welcome guys! Great to have you here! 😁
Donn K:
hello guys nice to join your community – its a pleasure to be here!
Paul Mont | Satoshi Club: Briliiant introduction, love it 💎
Маry Satoshi CLUB: Hello, Donn! Welcome here 😀 How’s going? Market is much better today😀
Donn K: youve got a huge group here
Donn K: its very interactive and hope to introduce our project
Paul Mont | Satoshi Club: We sure do, our community is very fond of learning about innovative projects like BTC Proxy 🚀
Donn K: yes well we hope to make the discussion as simple as possible to understand
Маry Satoshi CLUB: Donn, could you please introduce yourself and tell us more about BTC Proxy?😀
Donn K: My name is Donnie and I am the founder of BTC Proxy and also the CTO of Kryptoin. . Our focus is the intersection of Bitcoin and ETFs which are Exchange traded Products
Kryptoin is in the regulated Asset Management space where our Directors have managed over 70 Billion and managed the GLD which was the largest Gold ETF. We are also currently engaged in the application for a US Bitcoin ETF.
There are many similarities in Exchange Traded Funds and Stable Coin structures and we have applied these fundamentals to BTC Proxy so that it can be qualified for institutional usage
Маry Satoshi CLUB: I heard bitcoin is unlikely to recieve US ETF after this huge price movements, what is your opinion?
Donn K: well, I dont think price movements will be the determinint factor in the approval of the Bitcoin ETF
Маry Satoshi CLUB: I also hope so👏 less fud, more work than!
Donn K: we understand from the feedback from the SEC it is a series of factors mainly based on the possible manipulation of the markets
Paul Mont | Satoshi Club: I guess the actual low liquidity in the crypto markets might be one of those factors
Маry Satoshi CLUB: Elon should be banned from twitter 🤣
Paul Mont | Satoshi Club: But that should become less important as adoption rises, hopefully.
Donn K: Elon might be in some hot water with some of his comments
Paul Mont | Satoshi Club: Ah yes 😅
Donn K: What he does bring is attention to this market – which is driving everyone to it
Маry Satoshi CLUB: It’s a joke, but for years we see this manipulations, and to get more capital we need ETF and with it there will be less chances for manipulations
Donn K: yes, the ETF will be sign by the US that the doors will be opening for retail investment – but before they open the doors they will ensure that the market is safe
Маry Satoshi CLUB: Sometimes it comes down to a broken circle and thank you so much for trying to break it!
Paul Mont | Satoshi Club: I’m so eagerly awaiting the approval of the first US-based Bitcoin ETF. It’s gonna definitely be a huge next step towards Bitcoin cementing a much more concrete foundation and maturity for the crypto markets as a whole 😉
Donn K: we are hopeful also, I believe one of the first ETF applications was made in 2014 by the Winkelvoss twins so its been over 7 years
Donn K: with mainstream adoption happening in the rest of the world we believe the US is ready
Маry Satoshi CLUB: That’s awesome, you give us a portion of hope😀 Thank you for your great intro, Donn! We collected 6 questions from our community for the first part of our AMA 🚀 Are you ready to answer them?
Donn K: sure please go ahead
Q1 from Telegram User @meml97
Early this month BTC Proxy had their Allocation Mining Event, which I read it was a total blast, so can you tell us more about how this event really went? Also, after having such a successful event, your upcoming IDO is what everyone is waiting for, can you tell us more about this future event? When and where will it take place? Is there any whitelist we can join for it?
Donn K: great question

Launchpool is considered a PRE-IDO event or the private sale event that allows not only funds and VCs to participate but also the general public. They call this egalitarian investing that allows participants to get access to the same deals. The AME went very well with over 1.1M tokens staked which was over $11M of $lpool that was staked to secure their % portion of the offering which was 300K. The purpose of the AME is to distribute to as many wallets as you can so that the token has a wide distribution. We hope the event has brought over 5K wallet holders.
Donn K: The IDO is happening later in June, we have the details but are not allowed to disclose them yet but if you join the TG https://t.me/BTC_Proxy or twitter https://twitter.com/BTC_proxy , you can stay informed. There will be a whitelist.
Paul Mont | Satoshi Club: Amazing initiative, accompanied by so much engagement 👏👏
Маry Satoshi CLUB: Sure! We will follow your updates! But, please, don’t forget to share this news with Satoshi Club, so no one will miss it😉
Donn K: we definitely will, Satoshi club is great! glad I found this place
Paul Mont | Satoshi Club: I’ve read that following the AME, there will also be a follow-up Pop Up Pool due to the event’s high community interest?
Маry Satoshi CLUB: All roads lead to Satoshi Club 🤣
Donn K: actually Paul, the Pop Up pool was BEFORE the actual AME to gauge interest
Paul Mont | Satoshi Club: Can’t help but agree haha 😁
Donn K: we offered 20K worth of tokens and for that over 5M was staked. so there was significant amount of interest
Paul Mont | Satoshi Club: My bad, I was looking for another of such amazing entry opportunities regarding BTCProxy… I guess the next one will come with the IDO 😉
Donn K: Yes the next event is the IDO
Paul Mont | Satoshi Club: Thank you for the clear answer Donn! Let’s hop onto the next question, shall we? 😁
Donn K: sure
Q2 from Telegram user @Highpee
BTC Proxy platforms utilises 2 tokens: BTCpx and PRXY. While BTCpx is pegged to 1:1 the value of BTC, $PRXY will act as the platform governance token. Since BTCpx is an ERC20 token built on the Ethereum chain, What are the procedure to mint BTCpx and bring BTC function into Defi? In what way is BTCpx designed to offer an insured custody and a 1:1 backing ratio that can never be affected by volume or liquidity? Also, How will you make it possible to mine BTC using a Proof-of-stake mechanism by staking $PRXY when Bitcoin mining is normally done through a Proof-Of-Work? What are the procedure to do this and where will the BTC come from?
Donn K: great multipart question – means someone did their homework! The procedure to mint BTCpx occurs on our UI at btcpx.io/mint the instructions on how to do this can be found in the docs.btcpx.io and a video is also viewable for your convenience.
Маry Satoshi CLUB: Yes, @Highpee is a champion of questions 😉
Donn K: Once your BTC is locked in custody and you have your erc20 version of it you will find future pools with staking and yield earning opportunities surrounding that token and $PRXY
BTC is insured by a licensed and regulated custodian HEX Trust. You can find details of the insuranc here https://hextrust.com/custody-services/safekeeping#safekeeping-6
Donn K: BTCpx is designed to have a 1:1 ratio with BTC because it is backed by the same number inside custody. This mechanism to mint has no slippage and is not affected by volume as it is not dependent on liquidity since btcpx is new minted. It is burned when BTCpx is redeemed.
Donn K: and the last part about mining. Bitcoin is Farmed – not actually mined- as a DeFi protocol when $PRXY is staked. Where does this BTC come from? When users mint or redeem BTCpx they pay fees in Bitcoin and those fees are shared with the stakers
Маry Satoshi CLUB: Where we will be able to farm BTCpx?😀
Paul Mont | Satoshi Club: And also, which precentage of the fees are shared back to holders? 🙃
Donn K: Farming will happen on either btcpx.io/earn. or on some dedicated site. the fee sharing model is likely around 50% of fees earned on a monthly basis. so every month we strive to offer some BTC to be farmed
Маry Satoshi CLUB:
That’s incentive model😀
Donn K: we think this is an attractive model, as some people are only interested in BTC
Bitcoin is King!
Маry Satoshi CLUB: And that’s true, some people are real BTC maximalists
Thank you for your answers, Donn! Ready to proceed?
Donn K: yes go ahead
Q3 from Telegram user @Arisabela
You use a model that eliminates any centralized counter-party risk by allowing distributors and users to mint tokens by interacting with the smart contract directly, you must ensure the durability and safety of your smart contract to prevent unwanted attacks, what measures have been taken regarding safety?
Donn K: safety and security are always top of mind as should be with any new project. We have worked closely with the Matic/Polygon team to ensure best practices. There are certain things you must do to ensure security of Layer 2. We have performed penetration testing on the UI. We have also passed security audit by Quillhash

Маry Satoshi CLUB: Good job! And i suppose you will not stop?😀 As hackers always around
Donn K: yes its going to be a constant upgrading of security and testing
Маry Satoshi CLUB: Do you have a big team of developers?
Donn K: actually we do, we have about 6 full time. and many other contractors we use on a case by case basis. Layer 2 adds significant complexity to any project
Маry Satoshi CLUB: Quite big team! Yes, you’re right. Thank you for your answers! Ready to jump to the next question?
Donn K: yes
Q4 from Telegram user @kimterbear
You mentioned that DAO’s funds are not mixed with the general pool with the means of segregated wallets. How is this segregated? What is the protocol that segregates it and how can we ensure that funds do not mix with others? Is there an audit performed by a third-party application?
Маry Satoshi CLUB: Partially answered 😀
Donn K: when you are dealing with BTCpx we dont actually ever touch your funds
Donn K: you are sending them directly to the custodian. we simply detect the deposit or withdrawal at their address
Маry Satoshi CLUB: Who is custodian in this case?
Donn K: for DAO members we are able to program a sub account within custody so that it does not mix into the pools right in the smart contract. Hex Trust. so funds are never mixed which adds an additional layer of security
Paul Mont | Satoshi Club:
It is a mechanism that’s also being in place with “traditional” ETFs, is that correct?
Маry Satoshi CLUB: If, theoretically, something will happen with custodian (hack etc), what actions will be provided?
Donn K: this custody method is also used with ETFs and other funds also
Paul Mont | Satoshi Club: Safety is a very felt concern in the crypto space, I’m pretty sure any stakeholder will be super relieved and glad that you’ve aptly anticipated the issue and have already taken care of that with additional measures 🚀
Donn K: Funds inside custody if hacked are insured for a multitude of reasons
you can read about the insurance policy of funds deposited here
Paul Mont | Satoshi Club: Thanks for sharing 🙏
Donn K: welcome
Маry Satoshi CLUB: Thank you for your answers, Donn! Ready to go to the next question?
Donn K: yes
Q5 from Telegram User @cryptofollower
I check your DEX and it says, Currently in Beta Testnet – Do not send real Bitcoin. So I want to try out your beta testnet, where can I get test tokens? Also do you have any bug bounty and reward programs for people who are using your Testnet and report bugs to you?
Donn K: The beta is on Goerli Testnet and you can get testnet Bitcoin from faucets available on the internet. You just have to search for it. personally we use Bitpay wallet for testnet bitcoins. You can find the testnet contract for BTCpx from btcpx.io on the bottom left where it says Supply Contract. With these two things you can perform a test and receive testnet BTCpx into your metamask. There is currently no bug bounty but that is a good idea that we might implement before launch.

Маry Satoshi CLUB: What about rewards for testers?
Donn K: we will have to set up a bug bounty with satoshi club! 😊
Paul Mont | Satoshi Club: Haha that would be great 😁🔝. I’m pretty sure there would be some great contributors among the many skilled individuals inside the Satoshi Club community 😉
Маry Satoshi CLUB: Anyway i want to try testing! I like such kind of experience 😉
Donn K: we will look into this
Маry Satoshi CLUB: Thank you for your answers! Ready to proceed?🚀
Donn K: yes
Paul Mont | Satoshi Club: Last question for this first part of the AMA 🙂
Q6 from Telegram User @jodasf
Users in most cases, are in search of projects that really represent a good investment not only in the short term, but also over time, so I would like to know the details of the plans you are currently developing to expand in the market, achieve a very good position and be one of the most recognized platforms and adopted by users for its transparency, security and profitability?
Donn K: Transparency security and profitability are needed for any project, but we believe that the project has to serve a real purpose for real users and deliver real value. We already know that there is 10B worth of BTC tokenized for DeFi in the market, This large number still only represents 1% of the BTC value and there is much more coming in the future. there are inefficiencies in the competitors’ protocols that we are addressing such as high gas fees and a lack of a UI. It is 70% cheaper to use us than renBTC

Paul Mont | Satoshi Club: To my knowledge, both wBTC and renBTC are also uninsured protocols, compared to BTCpx. Am I wrong?
Маry Satoshi CLUB: I like this! Currently fees are a problem
Donn K: for any ETH project yes it is
Donn K: all our staking contracts to earn yield will also be L2. so this will bring more yield to participants because it save them costs
Маry Satoshi CLUB: When you plan to go live?
Donn K: on top of that we offer BTC as the reward. which we think is most attractive. we are moving to mainnet now. before the IDO
Paul Mont | Satoshi Club: And that’s already enough to draw a lot of attention 😁
Donn K: so stay tuned, we will let your community know and possibly have bug bounty
Маry Satoshi CLUB: Sure! We will!🚀🚀🚀
Donn K: wonderful
Part 2 — live questions from the Telegram community
Q1 from Telegram User @doithay1617
Wrapped Tokens are Popular, many tokenizing Bitcoin on Ethereum such as: WBTC vs RENBTC vs HBTC,… What is the difference between BTCpx and these similar tokens?
Donn K: i found 1 that I wanted to answer and this was about the difference between our competitors
this is a chart made by the guys at FOMOcraft that explains the differences
cheaper fees, better UI, insured custody are the benefits of using BTCpx
Q2 from Telegram User @rockmorti
What could be the entry and exit fees for using this platform? and is this feature available for all countries?
Donn K:
the cost to mint is 0.1% and the cost to redeem is 0.3% which is roughly the same as renbtc
Q3 from Telegram User
As BTCPx can be cheaper than RenBTC, what is the magic here? is awesome
Donn K:
the magic here is to save the user 70% in gas fees to mint or redeem your BTCpx and that happens because our protocol is L2
Q4 from Telegram User @highpee
One of your direct investor is MATIC and BTCpx will operate as a Layer 2 protocol on MATIC network. I read that you have been working with MATIC since 2017 with Kryptoin. Was it because of this familiar relationship that made you to launch your project on MATIC or are there any technological advantages that you have identified on MATIC which will best suit the scope of your project?
Donn K: yes one of our direct investors is Matic. we have been working with matic since 2017. I am a personal friend of Sandeep – before he became a billionaire! Lol. Sandeep and his team forcasted the need for Layer 2 in 2018. amazing if you can do the same as an entrepreneuer
Q5 from Telegram User
What are the main objectives of the BTC PROXY project for the next 1-5 years? Can you provide an explanation?
@donnkim
Donn K:
the objectives for BTC Proxy is to build the most reliable bitcoin bridge for institutions
our roadmap next is to integrate Gemini custody and BSC chain
Q6 from Telegram User @bila342
Does your project support staking program?if yes. how is your stake system work, what is the requirement for user if they want to stake in your platform?@donnkim
Donn K:
yes we will be creating a farm of staking opportunities around the tokens
they will be L2 to save you gas fees and they will be rewarded in $prxy tokens
Q7 from Telegram User @Kabirkapoor9
Hello @donnkim
Please give us an overview of tokenomics?
Donn K:
tokenomics basically – there is 21M total supply, with 829K initial marketcap at TGE
you can find the tokenomics at proxy.btcpx.io
Q8 from Telegram User @nadee5
Is there any chance to make passive income with BTC proxy ?
Donn K:
yes you can by staking or by providing liquidity to the pools to earn rewards
Q9 from Telegram User @NataliyaKil
Polygon, Alphabit, A195 Capitol, TDeFi Accelerator and O1EX join the list of super backers to the Proxy’s #NextGenBitcoinBridge. Can you tell us about #NextGenBitcoinBridge and what contribution these companies have made to the development of Proxy and what functions do they now perform as investors and partners?
Donn K:
these partners are all investors in the project and they have backed the project
Q10 from Telegram User @BlancaSdF
To convert BTC to BTCpx, do I need to pass some kind of special verification of personal data?
Donn K:
The user interface is permissionless so there is no KYC at the moment
but USA and OFAC countries will not be allowed to participate as ususal
Part 3 – Quiz Results
In the final part we tested your knowledge in terms of BTC Proxy. They’ve prepared 4 questions for this part. The total reward pool for quiz was 300$.
For more information and
future AMAs, join our Social Media channels:
English Telegram group: https://t.me/Satoshi_club
Russian Telegram group: https://t.me/satoshi_club_ru
Spanish Telegram group: https://t.me/satoshi_club_spanish
Telegram Channel: https://t.me/satoshi_club_channel
Twitter: https://twitter.com/realsatoshiclub
Website: https://esatoshi.club/
Our partners:
BTC Proxy Website – btcpx.io
BTC Proxy Telegram – @BTC_Proxy