Bitcoin and Cardano are now united by Charms. 🟠🤝🔵 We sent eBTC and BRO to Cardano. We sent ADA, SNEK, and USDM to Bitcoin. We unlocked cross-compatible Rust WASM dapps for both chains. The Universal App Protocol for UTXO, powered by zkVM.💎 Megathread; w/ receipts 🧵👇

Bitcoin's 200-week moving average has not fallen for over ten years. Volatile in the short term, but always growing in the long term against debasing fiat. Zoom out.

Alchemy requires... A smart contract BTC vault. 🟠 Programmable assets (FIRE ICE) minted against that vault🔥🧊 Asset compatibility with Cardano DeFi 🔵 Charms is the stack including all three. 💎

How much demand is there for Alchemy? 💎 Let's look at the precedents. MSTR (amplified BTC): $41.8 billion Babylon (BTC yield): $3.5 billion STRC: (stabilized BTC) $10.4 billion APYX Saturn (on-chain STRC): $750M The money is out there. Alchemy taps all of it.

Let's take another look at our latest product, Alchemy✨ Bitcoin has become the world's leading digital asset, but it still presents a challenge: for long-term holders, it isn't productive. Alchemy, in partnership with @CharmsDev, is designed to solve this by transforming a shared BTC reserve into two complementary assets tailored to different risk profiles. 🔥 FIRE (BTC ) - High-temperature Bitcoin FIRE concentrates Bitcoin's volatility into a single asset. As BTC appreciates, FIRE holders capture amplified upside. In return, FIRE absorbs downside volatility first during market declines. The result is a BTC-backed asset designed for users seeking greater exposure to Bitcoin's long-term growth potential. 🧊 ICE (BTC-) - Low-temperature Bitcoin ICE takes the opposite approach. By filtering out much of Bitcoin's short-term volatility, ICE provides more predictable, USD-denominated growth while remaining backed by the same underlying BTC reserve. The relationship between FIRE and ICE is what makes Alchemy unique. FIRE holders provide the volatility buffer that supports ICE's stability, while ICE holders enable FIRE's amplified exposure. The model draws inspiration from the growing demand for Bitcoin-backed credit products seen in traditional markets, but reimagines them as a transparent, blockchain-native system. Instead of relying on corporate issuers and intermediaries, FIRE and ICE are created through protocol rules and direct BTC redemption. The broader idea is simple: Not every Bitcoin holder wants the same thing - some want productivity, and some want predictability. Alchemy makes both possible from the same Bitcoin reserve.

Trouble understanding Alchemy? Use the simulator. 🔗sundialprotocol.com/alchemy/… Watch how FIRE and ICE react to changes in bitcoin's price and the reserve ratio. BTC moves -> FIRE moves more; ICE stays frozen One bitcoin reserve, two financial temperatures.🔥🧊

GM Cardano, To understand how Alchemy will ignite Bitcoin DeFi in your ecosystem, you must see how the economics of FIRE (BTC ) and ICE (BTC-) actually work. Think of Alchemy like the first onchain, bitcoin-backed bank. FIRE holders are like the equity holders in the bank, while ICE holders are like customers with a savings account. Observe the simulator below. Both assets are minted with BTC, and backed by the same BTC reserve, but their value reacts to bitcoin's price changes in vastly different ways that appeal to different investor profiles. FIRE is amplified exposure. When BTC moves, the FIRE price moves with it, and then some. It's even more volatile than BTC in the short term, with potential for even greater gains than BTC in the long term as the asset keeps appreciating. ICE is the opposite. It provides gradual growth in USD - less than BTC's long-term growth rate (starting around ~9.5% to 10% APR estimated). In return, holders don't need to sweat the volatility: ICE holders' exposure doesn't change whether the price goes up or down. The assets are complementary. FIRE minters provide the downside buffer for risk-averse ICE holders. ICE holders provide the amplified upside for risk-tolerant FIRE holders. In a sentence: Alchemy *strips* bitcoin's excess volatility and risk away from ICE , and concentrates it into FIRE. This is the same economic structure that Strategy is using to take the securities market by storm. MSTR ($42 billion) is an amplified bitcoin. STRC ($10.4 billion) is a stabilized bitcoin. Both are insanely popular. Why? Because not every investor wants or needs the same thing. Some want their BTC to be *productive.* Others want their BTC to be *predictable.* With Alchemy, bitcoin users can finally have both. And they can use it on Cardano. 🟠🤝🔵

Hey Cardano DReps - we made it as easy as possible for you to learn about Alchemy and our treasury proposal 🟠🤝🔵 - Discover @SundialProtocol and @CharmsDev - See the insane opportunity and market precedent for Bitcoin structured products - Simulate returns on FIRE (BTC ) and ICE (BTC-) Beautiful work from @sde_laney!

I believe Cardano can turn around for the better. All it really needs is one killer app, built on Bitcoin. That's what Alchemy, powered by @CharmsDev and @SundialProtocol, is meant to be - and why we're making a Cardano treasury proposal to bootstrap the project. This is the *first* blockchain-native take on Strategy's Bitcoin Treasury model: the one that produced the MSTR and STRC equities that are the biggest stories in crypto today. You must understand the demand. MSTR is worth $42 billion, and trades $2.6B per day. STRC is worth $10.4 billion and trades $386 million per day at just 11 months old! Strategy has discovered Bitcoin's killer financial product, and yet *nobody* has created the transparent, always-on, and permissionless version. That is our opportunity. Cardano can finally be the first to bring this killer app to DeFi, attracting an unprecedented wave of TVL and demand to its ecosystem and projects within the year. Want proof? Adjacent products - tokenized STRC-backed stablecoins (Apyx, Saturn) - have already drawn over $750m in TVL on other chains, and have only been live for under 5 months. Meanwhile, the vast majority of these assets are trading in adjacent DeFi products like Pendl and Morpho, and are the dominant assets on those protocols, proving how they bring insane activity to the surrounding ecosystem. When you have the right product, adoption can happen almost overnight. A new wave of opportunity in DeFi is emerging - "digital credit" - and Cardano must not miss it again. We welcome all DReps to provide feedback on our proposal before we submit it on-chain. Anyone who has questions about Alchemy, do not hesitate to ask me!

Charms proudly supports @SundialProtocol as a core technical partner in its proposal to bootstrap Alchemy: a first-of-its-kind Bitcoin Treasury Protocol and killer BTCfi application for Cardano. Review and feedback from DReps are welcome. Read about the proposal below. 👇 medium.com/@SundialProtocol/…

☀️ Sundial is proud to partner with @CharmsDev on our newest initiative: Alchemy - a new Cardano-native Bitcoin Treasury and liquidity system. Alchemy is designed to bring proven Bitcoin-backed structured product demand on-chain, positioning Cardano at the forefront of one of BTCfi’s fastest-growing categories. Alongside this announcement, Sundial and @CharmsDev will soon be releasing a Cardano treasury proposal to help bring this vision to life. We welcome feedback from the community before the proposal goes live. More information coming soon. Link to Article: medium.com/p/e437c964c3b6

Announcing Project Alchemy 💎 The world's first Bitcoin Treasury Protocol, built for the Bitcoin and Cardano networks. 🟠🤝🔵 Powered by @CharmsDev, in partnership with @SundialProtocol. Alchemy reimagines Strategy's digital credit model as a blockchain native DeFi application: always-on, global, self-custodial, and available to anyone with access to the Bitcoin network. Bitcoin users lock their BTC in a shared smart contract reserve. In return, they create one of two complementary BTC variants. 1) FIRE🔥(BTC ): High-temperature bitcoin. Junior claim. More volatility, amplified long-term rewards. MSTR equivalent. 2) ICE🧊(BTC-): Low-temperature bitcoin. Senior claim. Moderated growth, USD stability downside protection. STRC equivalent. FIRE makes bitcoin productive. ICE makes bitcoin predictable. Both are structured to provide a unique risk-reward profile that makes bitcoin appetizing for any type of holder. Best of all: both assets live *directly* inside your Bitcoin wallet, and are *redeemable* directly for real BTC. Bitcoin finance has found its killer product. Billions of dollars flowing through @Strategy, @Strive, and their blockchain derivatives prove that Bitcoin-backed structured products are the future of this industry, and of Bitcoin adoption as a whole. With Charms, we have the technology to bring that adoption wave into the on-chain future - aligned with Bitcoin's decentralized, transparent, borderless, and permissionless ethos. We're beyond excited to share this with everyone, and happy to count @SundialProtocol as the earliest partner and contributor to this project, aiding us with product architecture, go-to-market execution, and capital formation. Read more about Alchemy below. 👇

Charms has now made a super simple UX to send bitcoin to Cardano from ANY wallet. 🟠➡️🔵 Enter your Cardano address. Send BTC to the provided Bitcoin address. Done. Yesterday I sent BTC from my personal wallet straight to Lace as eBTC. Give it a try! 👇

It starts today. UTXBROs 🟠🤝🔵