What is Indigo Protocol iBTC (IBTC)?
iBTC is synthetic Bitcoin released in November of 2022 as part of Indigo Protocol v1. The Indigo Protocol is a CDP (Collateralized Debt Position) based DeFi protocol that brings capital-efficient synthetic assets to the Cardano ecosystem. Users can purchase iBTC from a DEX just like any Cardano native asset, or can mint iBTC within the Indigo Protocol by depositing ADA as collateral.
How does Indigo Protocol iBTC work?
When users mint iBTC within the Indigo Protocol, they must deposit sufficient ADA such that their CDP remains above the applicable Minimum Collateralization Ratio (MCR) - meaning a user deposits collateral in the form of ADA that ensures over-collateralization. If the value of a user's ADA collateral begins to decrease toward the MCR, a user can choose to add more collateral to keep their iBTC position above the MCR.
What is Indigo Protocol iBTC used for?
If a user’s collateral becomes worth less than the MCR of their iBTC debt, the Indigo Stability Pool providers will allow the user to keep their iBTC but will exchange Stability Pool iBTC for the user’s higher value ADA collateral. Thereby ensuring that iBTC remains overcollateralized and that the Indigo Protocol remains solvent via its efficient liquidation process. Unique to Indigo, users still receive their ADA staking rewards from stake pool delegation while ADA is being used as collateral in a CDP. This CDP Liquid Staking feature presents a unique use case for iBTC in trading strategies.
Where can you buy Indigo Protocol iBTC?
Indigo Protocol iBTC (IBTC) is traded on a wide range of centralized and decentralized exchanges. The most liquid markets for IBTC sit on tier-1 venues - the sort of exchanges where institutional desks and professional market makers rebalance continuously - which is what keeps the spread tight and the last price tied closely to fair value.
You can open the Markets section above to see the live list of exchanges quoting IBTC, sorted by 24-hour volume. Each row links to the venue's trade page so you can go directly from research to execution without copying the ticker around by hand.
What is the daily trading volume of Indigo Protocol iBTC (IBTC)?
The reported 24-hour trading volume of Indigo Protocol iBTC is $583.94. Volume is a live reading of how much IBTC changed hands across all tracked exchanges in the past day and tends to rise during periods of price discovery and fall during consolidation.