EverValue (EVA), the Bitcoin-backed DeFi project has raised more than $4.7 million from the presale of over 75 BTC tokens in the first week of its launch. The DeFi Project had initially targeted to sell 35 BTC in the presale.
According to the CEO of EverValue Flor Ayala, the success of the presale shows that the DeFi project has “strong backing from the community” which “reinforces EverValue’s unique value proposition in the cryptocurrency space”.
An hour into the crypto exchange XT’s launchpad led to 120,000 USDT for the Bitcoin-backed project as it sold 313,000 of EVA tokens.
EverValue seems to provide BTC users with an alternative way for DeFi staking. Bitcoin holders can increase their holdings by BTC mining through the EverValue project. This can happen without the risks of losing the Bitcoin capital of the holders.
The EVA token is capped at a supply of 21 million with the initial 75 WBTC allocated by the Arbitrum network in a smart contract. Scarcity is built into the EverValue system, revealed a spokesperson from the DeFi project.
With an initial investment in 555 ASIC rigs, the EverValue project aims to grow its Bitcoin holdings through mining. The output of the DeFi project is transferred to its crypto wallets as Wrapped Bitcoin (WBTC). The Burn Vault of the project is currently holding 110 BTC which is increasing at 6 Bitcoin per month rate.
The project has enough Bitcoin reserves to back the EVA token amidst market volatility as it will ensure consistent price appreciation against BTC, the spokesperson further explained. The DeFi project also has a token burn mechanism to reduce EVA supply. In the deflationary tokenomics model used by the EverValue system, long-term holders of the token will be rewarded as rarity is increased, driving long-term demand.
When crypto users redeem the EVA for WBTC, the EverValue tokens are burned, making the project DeFi project “whale proof” as the ratio between WBTC and EVA is maintained, even in the face of crypto whales selling the EverValue tokens.
To test the token-burning mechanism, the Bitcoin-backed project conducted a burn of 250,000 EVA tokens on October 23 which showcased the efficiency of EverValue’s deflationary tokenomics model.
The DeFi project's tokenomics is built on a smart contract which is audited by the blockchain’s security services company Hacken. The token burning happens while holders retain full control of their cryptocurrencies. The users can easily store the EVA tokens in personal wallets.
At the time of publication, BTC was trading at $73,326, up 6.45% while WBTC was at $73.310, up by 7%. The market cap of Bitcoin stands at $1.45 trillion while that of Wrapped Bitcoin was at $10.82 billion. Bitcoin’s trading volume has increased by 132.29% in the last 24 hours to touch $96.92 billion while Wrapped Bitcoin’s trading volume has surged 93.33% to reach $435.50 million.