MultiBit (MUBI)

What is MultiBit (MUBI)?

MultiBit (MUBI) is a cryptocurrency token bridging platform designed to allow users to transfer tokens seamlessly between the Bitcoin blockchain and Ethereum Virtual Machine (EVM) networks, such as the Ethereum and BNB blockchains.

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By bridging tokens that are based on Bitcoin’s BRC-20 standard to ERC-20 tokens on Ethereum or BEP-20 tokens on BNB, MultiBit aims to increase liquidity and support the development of the Bitcoin ecosystem.

Techopedia Explains

The BRC-20 token standard was created in March 2023. The name is consistent with the format of the Ethereum and BNB standards, but BRC-20 tokens do not have the ability to interact with smart contracts, as the Bitcoin blockchain does not support smart contracts in the same way as the EVM standard.

Cross-chain bridges such as MultiBit aim to increase interoperability between fragmented blockchain networks.

Bridging Bitcoin tokens to EVM-based networks allows them to use their tokens and funds across the Ethereum ecosystem, making use of its infrastructure and decentralized finance (DeFi) applications such as exchanges and lending platforms.

Cryptocurrency token bridging gives users the flexibility to transfer their liquidity or tokens from one blockchain network easily without the need for complex manual processes or multiple transactions.

This can create larger and more robust liquidity pools, increasing trading opportunities for users across different blockchain networks.

The MultiBit platform also offers features such as yield farming and a native MUBI token that gives holders governance rights and the opportunity to earn staking rewards.

The MUBI token is listed on several cryptocurrency exchanges, including Gate.io, MEXC, BingX, and BitMart.

How Does MultiBit’s Token Bridging Work?

Users connect their cryptocurrency wallets to MultiBit, select the BRC-20 tokens they want to transfer and send them to a unique BRC-20 address provided by the protocol.

Once the deposited tokens are received and verified, MultiBit mints or creates the equivalent amount of tokens on the EVM network.

The MultiBit Protocol periodically collects the tokens from the unique addresses and moves them securely to a unified cold wallet.

MultiBit’s dual-sided bridge functionality also allows users to transfer tokens back from EVM networks to Bitcoin. When a user chooses to withdraw their tokens, the MultiBit Protocol burns or destroys the corresponding amount of tokens on the EVM chain and transfers an equivalent value from the secure cold wallet back to the user.

In addition to the Ethereum and BNB blockchains, MultiBit allows users to bridge tokens to the Polygon and Arbitrum networks.

What is a MUBI Token?

MUBI is the platform token for MultiBit, which launched in November 2023.

As of 7 December 2023, the token has a total supply of 1 billion, with 950 million currently in circulation.

The development team offered to launch the token with an initial fully diluted valuation (FDV) of 300,000 USDT at launch, with 90% of the token supply made available for public sale, 5% allocated to decentralized exchange (DEX) liquidity and locked, and the remaining 5% allocated to the team with a six-month lock and subsequent release, known as linear vesting, over a two-year period.

MultiBit launched MUBI staking on 25 November, which allows holders to earn rewards in the form of ERC-20 or BRC-20 tokens, based on their staking amount, in exchange for contributing to the platform’s liquidity and security.

MultiBit Support for Bitcoin Ordinals

Ordinals are the way that the Bitcoin equivalent of non-fungible tokens (NFTs) are created on the blockchain by attaching data such as images and videos to an individual satoshi rather than attaching them to a smart contract like on the Ethereum network. Ordinals (ORDI) were the first BRC-20 tokens introduced.

MultiBit has an Ordinals Automated Market Maker (OAMM), which is a decentralized exchange protocol designed to enable trading ORDI tokens.

It provides liquidity, enables token swaps, and facilitates price discovery for ORDI and other paired tokens. It offers Farming Ordinals to allow ORDI holders to earn additional ORDI tokens by providing liquidity or staking tokens in selected pools.

The Ordinals Stablecoin is backed by a specific ratio of ORDI tokens held as collateral. These tokens act as a liquidity reserve to support the stability and value of the stablecoin so that it remains pegged to a 1:1 ratio to the USDC stablecoin.

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Nicole Willing

Nicole Willing has two decades of experience in writing and editing content on technology and finance. She has developed expertise in covering commodity, equity, and cryptocurrency markets, as well as the latest trends across the technology sector, from semiconductors to electric vehicles. Her background in reporting on developments in telecom networking equipment and services and industrial metals production gives her a unique perspective on the convergence of Internet-of-Things technologies and manufacturing.