The rise of Bitcoin-based tokens through the BRC-20 standard in 2023 marked a significant shift in blockchain innovation. As new assets emerged on Bitcoin’s network, demand grew for seamless integration with Ethereum Virtual Machine (EVM) chains. Enter Multibit (MUBI) — a next-generation cross-chain infrastructure designed to bridge BRC-20 tokens from Bitcoin with ERC-20-compatible ecosystems like Ethereum, BNB Chain, and Polygon.
This article explores how Multibit is redefining interoperability, liquidity, and utility for Bitcoin-native tokens while expanding their reach across decentralized finance (DeFi) platforms.
What Is Multibit (MUBI)?
Multibit is a cross-chain protocol enabling users to efficiently transfer BRC-20 tokens from the Bitcoin blockchain into ERC-20 equivalents on EVM-compatible networks. By doing so, it unlocks liquidity and broadens the use cases for otherwise isolated Bitcoin-based assets.
Beyond bridging, Multibit aims to foster the growth of the broader Bitcoin ecosystem by developing complementary tools such as decentralized swaps, staking, and liquidity farming. Its mission is clear: bring Bitcoin’s growing token economy into the mainstream DeFi landscape.
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How Does Multibit Work?
Cross-Chain Bridge Mechanism
Multibit’s core functionality lies in its secure and user-friendly bridge process. Here's how it works:
Transferring BRC-20 to ERC-20
- Deposit: Users send their BRC-20 tokens to a designated Multibit-managed Bitcoin address. They also provide their Bitcoin wallet address for potential reverse transfers.
- Verification & Minting: Once the transaction is confirmed, Multibit verifies the deposit and mints an equivalent amount of ERC-20 tokens on supported EVM chains (e.g., Ethereum, BNB Chain).
- Claim: After signing the transaction, users receive the newly minted ERC-20 tokens directly into their connected EVM wallet.
Transferring ERC-20 Back to BRC-20
- Initiate Transfer: Users specify the amount of ERC-20 tokens they wish to convert back, along with a small network fee.
- Burn & Verification: The specified ERC-20 tokens are burned on the EVM chain, and the request is relayed to Multibit’s backend system.
- Withdrawal: An equivalent amount of pre-stored BRC-20 tokens is sent from Multibit’s reserve wallet to the user’s original Bitcoin address.
This two-way mechanism ensures asset integrity and enables frictionless movement between ecosystems.
Multibit’s Ordinals AMM (OAMM)
To further enhance liquidity for BRC-20 tokens, Multibit has developed Ordinals Automated Market Maker (OAMM) — a specialized decentralized exchange protocol tailored for Bitcoin-native tokens.
OAMM leverages automated market-making algorithms to facilitate fast, low-slippage swaps between various BRC-20 assets. This innovation addresses a critical gap in the current market: the lack of reliable trading infrastructure for ordinal-based tokens.
Key Features of Multibit
1. Cross-Chain Bridge
The flagship feature of Multibit allows bidirectional conversion between BRC-20 and ERC-20 tokens. Currently, it supports three major EVM chains:
- Ethereum
- BNB Chain
- Polygon
Additional EVM-compatible networks are expected to be added in future updates.
2. Staking
Users can stake certain BRC-20 tokens directly on the platform to earn rewards in other BRC-20 assets. Rewards are distributed based on dynamic APR rates, incentivizing long-term participation and increasing token utility.
3. Farming (In Development)
Multibit plans to introduce yield farming opportunities where users can become liquidity providers (LPs) by depositing token pairs into designated pools. While still under development, this feature will deepen ecosystem engagement and reward active contributors.
4. Swap via OAMM
Although not yet live, the upcoming swap function will allow users to exchange BRC-20 tokens seamlessly using the OAMM protocol. With minimal slippage and high efficiency, this tool will become essential for traders navigating the evolving ordinal economy.
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MUBI Token: Utility and Distribution
Core Details
- Token Name: Multibit Token
- Symbol: MUBI
- Blockchains: Ethereum, BNB Chain, Polygon
- Standards: ERC-20, BEP-20
- Total Supply: 1,000,000,000 MUBI
- Circulating Supply: 950,000,000 MUBI
- Token Functions: Governance, staking rewards, platform incentives
Note: Specific details about token allocation and vesting schedules have not been publicly disclosed by the team at this time.
Use Cases for MUBI
- Staking & Farming Incentives: Holders can stake MUBI or participate in future farming pools to earn additional yields.
- Governance Rights: MUBI token holders will eventually gain voting power over key protocol decisions.
- Reward Distribution: The token serves as a reward mechanism for liquidity providers and active users within the ecosystem.
Where to Trade and Store MUBI
Trading Platforms
MUBI is available on both centralized (CEX) and decentralized exchanges (DEX), including:
- CEXs: KuCoin, Bitget, Gate.io, MEXC
- DEXs: Uniswap V3 (on Ethereum), OpenOcean
This wide availability enhances accessibility for global investors.
Wallet Compatibility
Since MUBI follows ERC-20 and BEP-20 standards, it can be stored in any compatible wallet:
- MetaMask
- Trust Wallet
- Coin98 Wallet
For convenience, users may also keep MUBI in wallets provided by listed exchanges.
Development Roadmap
Q4 2023
- Expanded support for more BRC-20 and ERC-20 token pairs across supported chains.
Q1 2024
- Major UI/UX improvements to enhance user experience.
- Integration with leading DeFi protocols to enable leveraged use of bridged assets in lending, swapping, and yield farming.
Q2 2024
- Strategic partnerships with key blockchain projects, exchanges, and DeFi platforms.
- Focus on expanding liquidity access and cross-token interoperability.
Team and Investors
As of now, Multibit has not officially revealed details about its development team or investor base. Transparency updates are anticipated as the project matures and enters new phases of growth.
Strategic Partnerships
Multibit collaborates with prominent players in the Bitcoin ecosystem, including:
- BRC20.com
- Zoopia
- Bitstable
These alliances strengthen its position as a critical infrastructure layer for Bitcoin-based tokenization.
Frequently Asked Questions (FAQ)
Q: Can I bridge any BRC-20 token using Multibit?
A: Currently, Multibit supports a select list of popular BRC-20 tokens. The platform regularly expands compatibility — check official announcements for updates.
Q: Is Multibit safe to use?
A: Multibit employs verified smart contracts and secure custody practices. However, always conduct due diligence and avoid sharing private keys.
Q: What makes OAMM different from regular AMMs?
A: OAMM is specifically optimized for BRC-20 tokens, which operate under unique technical constraints compared to standard ERC-20s. It offers better pricing accuracy and reduced slippage for ordinal-based assets.
Q: Can I earn rewards without holding MUBI?
A: Yes — staking certain BRC-20 tokens allows you to earn rewards even if you don’t hold MUBI. However, holding MUBI unlocks additional benefits like governance and enhanced yields.
Q: Will Multibit support non-EVM chains?
A: While currently focused on EVM networks, future expansion could include non-EVM blockchains depending on community demand and technical feasibility.
Q: How often is new information updated?
A: The project team commits to regular updates via official channels regarding tokenomics, roadmap progress, and feature launches.
Disclaimer: The information provided in this article is for educational purposes only and does not constitute financial or investment advice. Always perform your own research before making any investment decisions.
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