The Basics

Overview

The major product of the Hodl DAO is called the BTCH index. The goal is to facilitate BTC believers to accumulate his/her BTC positions in a less volatile way.

BTCH (BTC Hodl) is a synthetic ERC20 token that is designed to track the 365 days moving average price of BTC. The tracking is guaranteed by a decentralized periodical rebalancing mechanism, within the protocol owned liquidity.

The long term vision of BTCH is to contribute to building the decentralised monetary system of the crypto world. It is designed to be a crypto native currency (essentially a crypto native stable coin).

Background

Volatility has always been one of the defining characteristics of cryptocurrency. Bitcoin (BTC) itself has historically produced volatile highs and lows, and has been known to vary significantly in price often within very short periods of time. Regardless of this volatility, it has provided huge returns for investors who have stayed the course and HODL(ed) their coins proving that time eventually eliminates the risk.

Naturally, the wild price fluctuations of BTC has forced investors to reconsider their investment strategies. Many who have ventured into cryptocurrency have washed out during the journey as Hodl(ing) is harder to achieve than it appears.

The BTCH index is designed to be relatively stable and has significantly lower volatility, which is pegged to a 365-day moving average price of BTC and is designed to follow the increasing value of BTC over time. The intent of this effect is to help the investor HODL and, in turn, generate a greater return as a result.