Fully backed Crypto ETP Project

[KryptoMine]

Progress Update:

We’re nearing completion on the internal Wallet/Exchange balancer development. This feature aims to maintain a higher percentage of funds in local wallets, leaving a minimal amount on remote exchanges for rebalancing purposes. The system now supports fund transfers from exchanges to the wallet, as well as between exchanges. The final step involves the wallet-to-exchange transfer functionality, which requires us to calculate and verify the fees.

However, we’ve encountered a slight hiccup as the Testnet synchronization process was interrupted due to a lack of storage space on the virtual machine. The resynchronization process is now ongoing, but it may take up to 4 days to complete

On another note, we’re excited to announce that BTF has been listed on Taildatabase (Tail Database - Decentralized asset token database). We’re also listed on Spacescan, as mentioned in a previous post.

Finally, we’re gearing up for the launch of BTF on dexie.space. The planned start date is June 30. It’s a tight schedule, but we’re committed to crossing the finish line and making this happen. Stay tuned!

Roadmap:

• Launch (30 June)
  • Finish wallet-exchange fund transfer
  • write offering logic
  • Test offering
  • invest into my own btf
• Improve Product Webpage (post launch)
  • Create Automatic Portfolio reports
  • implement automatic portfolio reports into webpage
• To be continued…

[Bones]

Are you still planning to go the regulated route ?
Any time put in there ?

[KryptoMine]

Yes I do.
There are two primary issues there which I was not able to resolve yet:

1. requirement for kyc (know your customer) which would require for me to gather all the personal details of all customers/investors.
2. To register an asset in switzerland, at least 1m CHF assets under Management are required.

[KryptoMine]

Exciting times ahead as we near the launch of our coin.

Our wallet rebalancing function is, for all intents and purposes, complete.
Here’s a simple illustration of what that looks like:

This rebalancer ensures the correct asset distribution across portfolios. Each wallet and exchange can transfer assets to one another.

I was very lucky and Gate IO had technical difficulties to deposit and withdraw xch recently. A couple of you may have noticed. The rebalancer transfers the cheapest available asset (eg usdt) to another exchange (okx in that case) which can then transfer out to the wallet.

(note: this is separate from the rebalancing code in between assets, eg xch ↔ eth)

Here’s how it works:

1. John sends 1000 XCH to the local XCH wallet in exchange for BTF.
2. The rebalancer notes the increase. Now, the local portfolio has more assets than intended.
3. XCH is sent to Gate.io and okx.com for rebalancing. Once confirmed, the local wallet shows reduced balance. But exchanges don’t reflect this until 50 confirmations (approx. 10 mins).
4. In the interim, the price calculator adjusts the BTF price and portfolio balance due to the seeming shrinkage.
5. After 10 mins, when the assets reach the exchanges, the rebalancer adjusts the price and balance once more, leading to further unnessesary trades (and fees).

Two potential solutions to this delay issue are:

1. Temporarily halt trading for ~30 mins after initiating a portfolio transfer.
2. Utilize transaction memos or find transaction IDs on the blockchain to verify transactions and adjust portfolio values. This might be more complex due to limited exchange data.

Over the weekend, I’ll explore the feasibility of the second solution given the data available from exchanges is quite sparse at times.

Post this, I’ll be working on the offering code. Thanks to the robust chia client library I’ve developed, I’m confident this will be straightforward.

In anticipation of Chia version 1.9, I’m excited about the potential for time-limited offers to add a layer of security. I think I posted about requesting this Feature earlier in this Forum Thread.
Stay tuned for updates!

[Bones]

So youre not registering as a security within the usa?
Not able to serve / sell to usa citizens legally?

[KryptoMine]

im located in switzerland. Im not familiar with the rules there

[Bones]

I would have a look.

[KryptoMine]

Sprint Update: Fund Transfers and More

I’m thrilled to share that fund transfers have been fully implemented. Now, funds are transferred between exchanges using the cheapest available currency and chain (e.g., USDT on Arbitrum One for a minimal transfer fee of 1 USDT).

Funds are also automatically transferred between local wallets and exchanges. While I encountered minor hiccups when identifying transactions and transaction fees, I managed to address them successfully. The more complex task was maintaining accurate balances during transfers. Instead of pausing all activities during transfers, my bot now updates the expected balance in the target wallet once a transaction is initiated, and simultaneously deducts the amount from the sending wallet. When the transaction is confirmed, the balance updates to reflect the actual amount.

Implementing this enhancement was more challenging than anticipated as it impacted a all calculations, from inter-wallet rebalancing to UI display.

The final step before launch is now in focus: building the offering function and integrating the dexie.space marketplace. With all the preparatory work completed, I’m optimistic about meeting the launch deadline in the next 10 days.

Upcoming Milestones:

• July 1, 2023: Launch of BTF on dexie.space.
• July 8, 2023: BTF begins gathering portfolio statistical data.
• August 1, 2023: Publication of the first reports.

Stay tuned for more updates as we approach these exciting milestones!

[KryptoMine]

I’m thrilled to announce that BTF is now available on Dexie. The current price is set at $1.00 per 1.035 BTF.

Please note that simultaneously posting multiple offers at varying prices may not be advantageous. The bot must adjust these prices to align with market conditions, potentially incurring offer cancellation fees during volatile periods. Hence, the primary purpose of the current offering is to provide price information.

While the offer can be filled, it’s valued at a mere $1.00. This precaution minimizes potential risk from factors such as high market volatility or network outages.

Furthermore, these offers currently have a premium of 2.5% to maintain some stability and avoid constant price adjustments. Adjustments will occur once the price reaches a 1% threshold.

The suggested process is as follows: Check the current price on Dexie and create your own offer. The bot will periodically (approximately every 15 seconds) check Dexie’s offers and fill any appropriate offer with a premium of at least 1%.

Please note, the feature of searching and filling offers from Dexie is still under development.

Feedback is greatly appreciated. Bear in mind that the coin is still in its Beta stage and hasn’t been fully released yet.

[WolfGT]

@KryptoMine

I’m thrilled to announce that BFT is now available on Dexie.

Uh, BFT? … or BTF?

[KryptoMine]

its BTF. I’ve never been good in writing text. I guess I think in code…

Greetings, everyone. I’m excited to share that I’ve been testing the offering functionality on Dexie, and I’m pleased to announce that it’s working well. I have created and executed three offers from my personal farming wallet and successfully purchased BTF with it.

Let me explain the procedure to you:

1. Navigate to dexie.space and select BTF from the dropdown. Here’s the link: dexie - Chia DEX for Offer Files
2. Identify the price marked in green. This is the current offering price.
3. Multiply the amount of XCH you’re willing to spend by the BTF price. For instance, if you want to purchase 10 XCH, the calculation would be 10 XCH * 34.385 = 343.85 BTF.
4. Create an offer with the amount of XCH you wish to spend and the calculated BTF result.
5. Upload the offer to Dexie. The system should accept it within less than a minute.

However, I must point out that the process isn’t perfect. As it currently stands, you might overpay by up to 4%. This is because Dexie treats buy and sale actions as different assets and doesn’t combine the price.

To obtain a more accurate price, you can swap “XCH → BTF” to “BTF → XCH”, add the two numbers together, and then divide by 2. In this case, the calculation would be: (34.385 + 36.149)/2 = 35.267, which gives you a more precise price. Please remember to add the minimum of 1% plus the transfer fee to this number.

Admittedly, this is a somewhat cumbersome process. I’m actively considering ways to improve this in the future. One idea is to add an offer calculator to the official website.

Please keep in mind that trading is still in an early stage, so we’re open to these types of restrictions for now. I’ll be continuing to use this process for my own tests.

Going forward, I will be focusing on storing history data so we can provide detailed reports in the future. Your feedback and patience are appreciated as we continue to refine and improve the process.

[KryptoMine]

Development Update

Current Progress of BTF

I’d like to provide an update on our ongoing project. The process of storing historical data has been delayed due to code cleanup that was significantly needed after extensive development. On top of that, the physical relocation of my Chia farm has added to the delay, slowing down the progress on the reporting end. However, the implementation of this feature has now begun.

Updates on Offers

I have introduced a broad range of offer sizes in response to the manual offering process which was cumbersome. You can continue using manual offerings, if preferred.

To reduce the frequency of updates and offer update fees, I have increased the maximum margin on the offerings. Note that currently, no service fee is deducted from our offers on Dexie. The full amount is added to the portfolio, essentially benefiting all BTF holders equally in order to minimize the negative impact of buy/sell actions. Further down the line,the targeted 1% fee will be implemented, the rest of the extended margin is added to the asset pool to keep everything fair.

Short-Term Goals

In the near future, I’m focusing on implementing the trade history collection and report generation features. Upon completion, I’m planning a BTF giveaway for some lucky holders of our KryptoCrest NFT Collection.

Intermediate Goals

The BTF project is transitioning from the development phase to the maintenance phase, and as part of this shift, I am planning to launch some stablecoins. This was always part of our longer-term strategy, but the recent issues with USDS have highlighted the importance of providing alternatives. The planned implementation date is in 6 months.

Our stablecoins will feature the KryptoMine colors in their logo for easy recognition, with each coin incorporating the currency symbol. After the release of KRYPUSD, we’ll be able to create additional currencies using the template, facilitating the release of a range of stablecoins.

Other Interesting Events in the Chia Ecosystem

Chia Blockchain 1.8.2 has begun laying the groundwork for real-world identity management. They intend to use this feature for KYC, an essential step towards creating a fully conformant, federally approved asset, as we have discussed in previous posts.

This is exciting news, as current decentralized exchanges lack robust mechanisms for KYC (Know Your Customer) procedures. I am looking forward to seeing how well they implement this feature.

[KryptoMine]

BTF Development Update - July 18, 2023

Hello BTF Community,

As the sole developer behind Blockchain Traded Fund (BTF) and owner of Kryptomine.ch, I’m committed to sharing clear, factual updates about our progress. I’m glad to present you with the latest developments and the ongoing work in our ecosystem.

Software State:

The portfolio rebalancer, a critical element of our system, continues to perform its function effectively. Recently, I’ve resolved a set of stability issues, enhancing the system’s overall reliability. This enhancement might have gone unnoticed, but it substantially improves the stability and usability of our platform.

Additionally, I’ve made significant improvements to our offer search functionality. This means a more efficient experience for you when seeking the best investment opportunities within our ecosystem.

Future Development: Statistics and Reports

I believe that comprehensive and accurate data are key to informed investment decisions. That’s why I’ve developed a converter library for Portfolio Performance tables, enabling the generation of CSV files in the Portfolio Performance format.

PortfolioPerformanceTableHelper 1.0.0

The current task at hand is to aggregate all transactions from each exchange into one unified report. I am fully aware of the value that such an aggregated report would offer our investors, and I am diligently working on making this a reality.

BTF Performance:

In terms of BTF’s financial performance, we have been experiencing a period of relative stability. The portfolio started at approximately $0.97 per BTF, and it’s now at around $1 per BTF, indicating a steady and consistent growth.

Please note that the line has remained steady recently. This stability is due to the increased tolerance to price changes before updating offers, as described in my last update. During this period, there was a significant bump in crypto prices, and the price of BTF climbed up to $1.04, a new all-time high. As of now, the value is back to $1.

I’m dedicated to driving the success of BTF and I understand the seriousness of this financial venture. Rest assured, I am continuously working to enhance our platform and make BTF a robust and reliable blockchain traded fund.

I can’t wait to provide some proper reports and figures.

Best,

Julian Bechtold

[KryptoMine]

Developer Update

Hello to our dedicated community,

Portfolio Performance Export Progress:
Over the past 22 days, I’ve been deeply engrossed in enhancing the portfolio performance export capabilities. Here’s a rundown:

• OKX & Gate.io: Good news first! We have successfully enabled transaction exports for both OKX and Gate.io.

• Chia Client: The transaction export feature for Chia is shaping up and is nearing completion. We’re about 80% done, to give a rough estimate.

I must admit, this journey wasn’t as smooth as I’d hoped. Handling a myriad of formats, navigating through API limitations, and unforeseen changes – it’s been quite the adventure to say the least.
Notably, the OKX API client needed some tweaks, which have now been made available on GitHub for the public.

Stability Improvements:
The resilience of the Portfolio Manager has been notably enhanced. In practical terms, if there’s an exchange outage where servers are online but not updating prices due to maintenance, the system will gracefully recover once the data flow resumes.

Chia Client Library Update:
In line with the Chia version 1.8.2 update, I invested significant time in refining the library to support nullability. It was a meticulous, exhausting task, ~8000 changes in 300 Files. If you’re an active user of this library, be aware that some adjustments will be necessary on your end.

On a lighter note, I occasionally ventured into a side project to rejuvenate and untangle my mind. Such breaks often lead to fresh insights and, trust me, it’s for the better.

As always, your feedback is not just welcome—it’s instrumental. Let’s continue this journey together.

Stay updated and take care,

Julian from KryptoMine

[KryptoMine]

This was a quick one. What a downer.
I am currently in the process of reverse engineering chias transaction history. Unfortunately, the documentation still half-baked despite all the recent improvements to it.

The history brings quite a few uncertainties which I document my findings here:

Documentation for Transaction_DictMemos requested

I am working with the chia team to do clarifications while I am slowly progressing forward by trial and error as well as testing.

It seems like reading out the transaction history from chia in order to file a report might be the most complicated one.
2 Merkle trees have to be validated against each other.
example for an offer creation and approval (3 transactions):

1. you get an INCOMING_TRADE transaction with no removal coins but an addition which represents the offer creation. This Transaction is not confirmed on the blockchain
2. You get an INCOMING transaction with the same data. This transaction confirms the offer on the blockchain, but you need to match it against the INCOMING_TRADE transaction in order to identify it as an offer
3. You get an OUTGOING_TRADE transaction upon offer completion. This offer needs to be validated against 1. and 2.

If someone has detailed information about these processes it would be greatly appreciated.
As of right now, this means the reporting will be further delayed.

[KryptoMine]

Update: Two Months In

Two months ago, I embarked on a journey to unravel the mysteries of Chia transactions. Picture a miner digging through layers of blockchain, hopeful but unaware of the challenges ahead. Little did I know, the gold I sought was elusive, buried in unreliable data.

Positives:

Gained an in-depth understanding of blockchain transactions.

Negatives:

Found out that Chia’s client transactions are far from dependable:

Transaction history is not deterministic due to heuristics we use to counter privacy features of the blockchain. the wallet does a best effort. we are trying to improve this going forward. for accurate records you should keep a local record of TXs made. If the balance is not the same (within a mojos because of dust filtering) please let us know.
GitHub Issue

Looking ahead, it’s clear that I’ll need to navigate the history myself, tackeling issues like stuck transactions. It’s a challenging road, but one that appears manageable.

Performance Metrics:

While I can’t provide a detailed report, here are some key metrics:

• BTF: Since its public start in July, BTF gained 8.36% over Chia.
  

  

• USD: Compared to the US dollar, BTF experienced an 8% loss (or $0.08 per coin).

• Ethereum: Went from 1,856 on June 29 to 1,704, marking an 8.9% loss.

• Bitcoin: Started at ~30,300 and now sits at 27,197, a decline of 11.4%.

In conclusion, despite Chia’s underwhelming performance, I’m optimistic given that BTF outpaced Chia, Ethereum and Bitcoin.

[KryptoMine]

Dear Community,

It`s time for another update.

Performance report
I have been reluctant to post back recently. The Performance reports feature has been very frustrating for me, as im Stuck on the finish line.
Chia prooves to be very resistant to obtain a useful transaction history from due to a variety of reasons such as privacy features, non-deterministic approach and 2 Bugs in transaction classification I encountered.

I hence started my own transaction classification, which I need valid samples from transactions to build upon. I tried doing that manually but it’s not easy. There are plentiful types and combinations which additionally cause transactions in different wallets which have to matched up against each other.
For instance, a simple cat transaction causes a transaction from the cat wallet and an additional transaction on the xch wallet, if a fee was given. Andling all these cases manually, prooved to be near impossible due to the amount of possible combinations

I am now trying another approach in order to get reliable data: I will trigger each transaction type (send, receive, create offer, cancle offer, accept offer, offer got accepted, with fees, without fees) programatically on the testnet and fetch the transaction history after each iteration to see what changed.

---

Other resolved issues
I recently had failures to remove old offers from the market and finally chased the issue down to my wallets vm, where the drive was running full.
The root cause was the chia client which rann in full node mode instead of as value. This was a simple fix at least.

I am also still tracking down another issue which is bogging me since the beginning.
In rare occasions, I observe an orderbook from gate.io which has a price with a negative volume. In that instance, my application proceeds with an emergency halt in order to not work with corrupted data and for me to observe where the issue is coming from. I have validated my code bit by bit and the last thing where the issue can occur now is for some reason at my order book conversion or gate-io has a weird standard to report orderbooks in rare occursions. Anyways, It cant be long anymore, until this issue is resolved. Luckylie, the issue is non-critical for the operation but requires a manual restart of the services.

---

Improvements to the infrastructure
Due to the issue with the harddrive, I decided to improve my infrastructure. I set up mail servers to provide watchdog alerts in case of any failures. This is about to be implemented

---

Update to the webpage
Due to my frustration with the performance reports, I decided to take a break on that topic and focus on other parts of the project before getting back at the reports.
In the mean-time, I have been working on the webpage itself and I have created a product page for BTF. These changes are not yet online. I have them on my private testpage. The Mobile design rework is still outstanding, upon which I will publish the changes.

---

BTF Performance
First of all, I am happy to report that I generated the first sale on the BTF Project. An unknown person purchased 1 XCH worth of btf. Said person sold the share the day after. Perhaps, because he or she was not convinced by the project, or for testing purposes.
Nontheless, I it is a first step

Furthermore, 3 Month performance of +20.14% over xch continues to look promising, altough the performance vs USDT in 3 Months is -8% After all we are in a bear market right now.

I am continuing to invest my farm’s rewards into the project for my personal portfolio management.

[KryptoMine]

Another short update as there is fear spreading in the chia community.

As of right now, I keep chia in the BTF Portfolio. The Portfolio is not large yet and only my Money is involved so far. If chia goes down, I see it as a good test on how the Portfolio reacts in extreme market conditions.
As of right now, the portfolio is slowly but firmly pushing up the ladder on dexie.space, albeit there are only ~2000$ allocated to it:

---

Fix for orderbook data
On a side note, I have been able to track down the issue with negative volumes up to the data I receive from the Gate.IO.
I have been able to quickly assemble a workaround. All major bugs have been worked out to my knowledge and the application should run stable with no more restarts nessesary (except the exchange is down for a prolonged period of time.)

---

Upcoming
I will now start another attempt to push through with the chia wallet transaction history.
After that I want to improve the trend-bias which is managing the portfolio balancing. I have observed that the bot reacts too slow to fast, large market changes as I have realized that crypto has a lot fast-paced, strong market changes, such as 15% up in 15 minutes just to go down 15% a couple of minutes later.

This is mostly an optimisation. An attempt to strike the right balance between short term trend and long term trend. As I realized, a short term trend is usually less strong, because the average follows the current price much closer while a long term average only follows the spot very slowly.

[KryptoMine]

The recent 2.1.0 Upgrades are fantastic news I think. Two major features which I have requested have been finally implemented:

• Offers which expire automatically after a set time
  This will help tremendously with offer management and will furthermore remove all associated fees with removing offers from the market place. I have been able to work around these previous limitations but I am very glad to be able to implement this improvement into my application in the future (although it is not a priority)

• Verified Identity bound CAT’s have arrived!
  these are very, very good news. As you know, we discussed official approval of the asset by financial institutions. There is usually one major flaw: In crypto decentralized markets, the KYC requirement is impossible to establish. In Official crypto exchanges, it is incredibly hard to get listed, as you need a tremendous market share in order to get listed in the first place.
  The new feature promises to resolve these issues! Thats Great news! there is still plenty of documentation missing but we are a good step closer with the chia eco system in order to launch fully governmental approved assets.

Yes I know, the BTF I offer is not yet Officially approved, but let me tell you that it is simply impossible to bring out an officially approved asset as of right now without going through a centralized exchange. Full Stop.
It that reggard, I thing the chia eco system is technologically heading the right way. Also the client is far beyond any other local crypto clients I have seen yet.

I am not so confident yet, that the chia ecosystem will surwive but I am doubtless, that chia will influence the crypto industry in major ways over time, even if the chia project itself won’t succeed.

[KryptoMine]

Dev Update No 32

Bit by bit I am chipping away on the transaction history. I think there is light on the end of the tunnel.

Transaction history

I have systematically created around 150 transactions and analyzed the raw transactional data over the course of the last 2 Months.

10 Tickets later with the chia dev team and i’ve worked out most of it now I think.
I want to mention a couple notable ones here:

• when someone else accepts your offer, the incoming assets are marked as transactions, not as part of an offer
• When you accept an offer and add a fee to it, the amount is beeing calculated differently than when sending a transaction
• The chia client cannot match transaction to offers

nontheless, I documented all my findings and managed to match the offers to the transactions aready. I am now working to build the Transaction history

Portfolio Report

I have started to optimize BTF’s approach to performance rebalancing with three notable changes:

• the momentum indicators of longer periods are way stronger by nature. A 90 day momentum is very roughjy stronger than a 2h momentum by a factor of at least 280. These are now balanced out automatically
• The BTF now tracks the Volatility. When the volatility is low, short term momentum is beeing downweighted and the long term momentum is taking precedence. When the volatility gets higher, the short term momentum is beeing weighed equally to the long term momentum
• when there is downwards momentum, the underbalancing is beeing squared to make action more drastic.

On Friday 10, Solana has been added to the Portfolio. This was planned for longer and the slowly growing portfolio allowed for adding a further asset. So far, this was a good decision.
The portfolio now consists of:

• BTC
• ETH
• XCH
• SOL