btcgrow.io Light Paper
Introduction
Bitcoin is the world’s most secure and decentralized digital asset, but it remains inherently passive — offering no native yield. While chains like Ethereum have built rich DeFi ecosystems that unlock earning opportunities, BTC holders are often limited to centralized or custodial options that compromise ownership. btcgrow.io changes this by introducing a permissionless decentralized non-custodial staking protocol through Wanchain and Cardano smart contract. Through btcgrow.io, users can earn passive income while retaining full control over their Bitcoin — combining security, sovereignty, and yield in a single solution, using only their Bitcoin wallet to control their stake.
btcgrow.io enables Bitcoin holders to stake their assets with a simple interface, offering a non-custodial and liquid staking solution. While BTC asset is locked by Wanchain script and managed by Cardano smart contracts, users can access their asset anytime in a secure & transparent manner using their Bitcoin wallet. Unlike traditional staking systems, btcgrow.io has no lock-up period, allowing users to withdraw their BTC at any time. Our goal is simple: to unlock Bitcoin’s earning potential while staying true to its core principles of self-custody and security.
Why use Cardano Smart Contract
Cardano is a uniquely powerful foundation for unlocking BTC yield. While many DeFi protocols exist on Ethereum, the Cardano blockchain offers key advantages for secure and predictable financial operations:
1. Truly Decentralized Network
Over 3,000 stake pools
No reliance on centralized validators
Active on-chain governance
2. Predictable & Low-Cost Transactions
UTxO model ensures deterministic execution
No gas war, no front-running
Transaction fees are predictable and affordable
3. Composable DeFi Stack for Yield Generation
Native support for on-chain lending, fixed-rate income, and leverage protocols
Integration-ready with platforms like Danogo
wanBTC can plug into Cardano-native DeFi for continuous, compounding yield
4. Security-First Smart Contracts
Written in Plutus/Aiken
On-chain validation of every contract interaction
Open-source and community-audited
By choosing Cardano, btcgrow.io leverages an efficient, secure, and underexploited DeFi layer — giving BTC holders the best of both worlds.
High level architecture
btcgrow.io is designed based on the interaction between Cross-chain Bridge, Bridged Assets Management, and Yield Generation through decentralized lending. Below are the key components of the architecture:
1. Truly Decentralized Network
To bring BTC onto Cardano, btcgrow.io leverages WanBridge, Wanchain’s decentralized, direct, and non-custodial value-transfer protocol. WanBridge enables users to lock native BTC and mint wanBTC on Cardano — without relying on intermediary blockchains or centralized custodians. Cross-chain transactions on WanBridge are executed and secured by a decentralized network of permissionless bridge nodes, which are rotated and re-elected on a monthly basis. These nodes use a combination of Secure Multiparty Computation (sMPC) and Shamir’s Secret Sharing cryptography to collectively manage the locking, minting, and release of assets across chains.
This architecture ensures that:
Native BTC is securely locked during the wrapping process
Wrapped BTC (wanBTC) is verifiably backed and redeemable
Arbitrary messages and data can be transferred securely between Bitcoin and Cardano
To bring BTC onto Cardano, btcgrow.io leverages WanBridge, Wanchain’s decentralized, direct, and non-custodial value-transfer protocol. WanBridge enables users to lock native BTC and mint wanBTC on Cardano — without relying on intermediary blockchains or centralized custodians. Cross-chain transactions on WanBridge are executed and secured by a decentralized network of permissionless bridge nodes, which are rotated and re-elected on a monthly basis. These nodes use a combination of Secure Multiparty Computation (sMPC) and Shamir’s Secret Sharing cryptography to collectively manage the locking, minting, and release of assets across chains.
2. Bridge Asset Management
Once wanBTC is minted on Cardano, it is managed by a Cardano-native smart contract that tracks ownership, deposits, and staking activity. This contract acts as the core ledger of btcgrow.io, ensuring that:
Ownership of BTC remains transparent and verifiable on-chain
Users can withdraw their BTC at any time (liquid staking)
Deposited wanBTC is routed toward yield-generating protocols securely
This smart contract also serves as the controller for managing the flow of BTC capital — determining how much is held idle, how much is actively supplied to DeFi strategies and how much is waiting for withdrawal.
3. Lending Protocol - Danogo Flexible Pool Lending
To generate yield, wanBTC is supplied into the Danogo Flexible Lending Pool, a decentralized protocol on Cardano that supports variable-rate lending. Through this pool:
Deposited wanBTC is made available to borrowers on-chain
Borrowers may include retail users or leveraged trading platforms
Lenders (BTC holders) earn interest from the borrowing activity
Funds remain liquid and lenders can withdraw at any time based on pool utilization
Danogo ensures that lending is composable, decentralized, and governed by transparent interest rate dynamics. As liquidity demand grows, so does the yield opportunity for BTC stakers.
How it works
Cardano is a uniquely powerful foundation for unlocking BTC yield. While many DeFi protocols exist on Ethereum, the Cardano blockchain offers key advantages for secure and predictable financial operations:
Stake BTC – Simple, Non-Custodial, Yield-Ready
Staking with btcgrow.io is designed to be seamless and non-custodial — all a user needs is their Bitcoin wallet.
1. Initiate from Your BTC Wallet
Users interact directly with btcgrow.io through a user-friendly interface. After signing the transaction, their BTC is sent to WanBridge, a decentralized, non-custodial bridge that locks the BTC securely without requiring centralized intermediaries.
2. Mint wanBTC on Cardano
Once BTC is locked on the Bitcoin network, WanBridge mints wanBTC, a wrapped version of BTC, directly on the Cardano blockchain. Each wanBTC is backed 1:1 by the BTC held in the bridge contract.
3. Secure Custody via Smart Contract
The freshly minted wanBTC is automatically sent to btcgrow.io’s Bridge Asset Management smart contract on Cardano. This smart contract:
Maintains proof of ownership
Tracks user deposits
Make sure the assets could be routed into correct yield protocol
4. Earn Yield via Decentralized Lending
Staked wanBTC is supplied to a decentralized lending pool, such as Danogo’s Flexible Lending Protocol, where it is made available to borrowers and leveraged trading strategies. In return, users earn passive yield — while keeping their assets liquid and under full control.
Withdraw BTC – Seamless Exit, Full Sovereignty
btcgrow.io ensures that your BTC remains liquid and accessible at all times. With no lock-up and no middlemen, withdrawing is as easy as staking.
1. Initiate Withdrawal from btcgrow.io
Users begin by initiating a withdrawal through the btcgrow.io interface. This triggers the withdrawal of wanBTC from Danogo’s Flexible Pool Lending, returning the assets to the Bridge Asset Management smart contract on Cardano.
2. Burn wanBTC via WanBridge
The Bridge Asset Management smart contract sends the user’s wanBTC to WanBridge, where it is burned. This action triggers the release of the equivalent amount of native BTC previously locked on the Bitcoin network.
3. Receive BTC to Your Wallet
The native BTC is sent directly back to the user’s original Bitcoin wallet, completing the full staking cycle. Every step is fully transparent and verifiable on both the Bitcoin and Cardano blockchains.
4. No Lock-In, No Waiting
btcgrow.io imposes no lock-up periods, no slashing penalties, and requires no centralized approvals. Users can stake or withdraw at any time — maintaining complete control over their assets throughout the process.