Aim Of HOTFI

Currently, there is significant loss in the trading process of BRC-20 standard tokens due to various fees such as token fragmentation, listing transactions, actual trading, miner fees, and transaction fees. These costs have led to low trading volumes and a lack of liquidity for BRC-20 standard tokens.

HOTFI aims to reduce the trading loss of BRC-20 standard tokens through the following approaches:

• By mapping BRC-20 standard tokens to ERC-20 standard tokens through an EVM contract factory during the trading process, the number of token fragmentations during transactions is reduced.

• By utilizing the EVM protocol to construct an order book trading model, the number of confirmations required on the BTC network during the trading process is reduced.

• Implementing limit order trading to reduce slippage and abrasion in peer-to-peer BRC-20 token transactions.

The HOTFI platform only performs token fragmentation or engraving when users deposit or withdraw BRC-20 standard tokens. During the trading process, it completely relies on its mapping scheme for token transfers and records transaction data on the blockchain. This approach effectively lowers the loss incurred by BRC-20 standard tokens during transactions and simultaneously alleviates congestion on the BTC network.