1. Who is the interested party for this collateral application ?
Nobody and everyone, as 0xBTC is entirely decentralized trustless and neutral, structured exactly like ‘bitcoin/litecoin/dogecoin’ but as an ERC20 smart contract.
2. Provide a brief high-level overview of the project, with a focus on the applying collateral token.
The ideal collateral to back DAI is neutral with no central point of failure and trustless with no IOU, no custodian, no central bank, and non-owned smart contracts with no oracles. With this in mind, 0xBitcoin is the ideal collateral to back DAI.
The 0xBTC smart contract was deployed in Feb 2018 with an initial supply of 0 tokens. This non-owned contract gave no tokens to the deployer. Instead, tokens are minted from the contract with a mint() method that rewards new tokens from Proof of Work. This reward halves every ~4 years to a max supply of 21 million 0xBTC tokens. The difficulty auto adjusts to target 15 minute reward periods. There are no oracles used to accomplish either of these tasks and no human has any capability to affect the smart contract in any way. There is no contract admin and the code can never be changed.
3. Provide a brief history of the project.
Upon deployment on Feb 6th 2018, information about how to CPU mine for 0xBTC from the smart contract was published to Bitcointalk Forums. More advanced CPU miners were developed by the community, followed by GPU miners and then mining pools. Today, three large mining pools and many solo miners are mining for 0xBTC. Liquidity for the token largely exists on UniswapV3 and on Sushiswap on the Polygon sidechain. Mercatox exchange has additional liquidity.
Since 0xBTC is trustless and neutral with no dependencies, since it works exactly like a new ‘version’ of Bitcoin but redeployed from genesis as a smart contract, and since its price is non-correlated to ETH, it is the absolute perfect token to use as collateral for DAI. Since it is relatively new at only 3 years young, the liquidity is relatively small with a total market cap of $6m. This would have been seen as large when Maker DAO first launched, and this is merely a chicken-before-the-egg type of phenomena.
Liquidity can be grown over time, and it will with additional integrations. Trustlessness and neutrality of an asset can never be grown or changed, so the fact that 0xBTC has better trustlessness and neutrality versus any other asset on the Ethereum Mainnet (Especially compared to USDC and WBTC) makes it extremely desireable as collateral to the Maker DAO basket. My suggestion is that it be onboarded with a small capacity today, even if only used for a fraction of 1% of the basket of collateral, because it will be paramount and a key asset to the ecosystem fundamentally as liquidity grows. By Maker DAO adding support, this will help grow liquidity of 0xBTC which will in turn make it a stronger asset which will in turn make Maker DAO stronger and more trustless like symbiotic partners.
I strongly strongly encourage reading the smart contract as it explains the entire scope of 0xBTC. There is no company, team, service, app, or anything else running 0xBTC except the contract.
Growing marketcap of 0xBTC over time
PoW mining hashrate (mvis.ca/analytics.html)