bitcoin-bitforward

Decentralized Bitcoin-backed forward contracts on Stacks — hedge, trade, and settle with sBTC, no middlemen.

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BitForward

Decentralized NFT-backed forward contracts using Bitcoin collateral on Stacks blockchain.

Inspiration

Traditional forward contracts are opaque, illiquid, and reliant on intermediaries. We envisioned a decentralized alternative where users can hedge, speculate, and settle contracts transparently using Bitcoin. By eliminating custodians and enabling flexible, trustless agreements, BitForward modernizes risk management for DeFi and institutions alike.

What it does

BitForward allows users to create Bitcoin-backed forward contracts on-chain:

  • Hedge, speculate, and settle positions with leverage
  • NFT-backed positions (long/short) tradable on a secondary market
  • Premium incentives to balance market participation
  • Automated contract settlement with real-time price updates
  • Multi-asset support (e.g., sBTC/USD, sBTC/EUR)

How we built it

  • Smart Contracts: Clarity-based contracts on Stacks (NFT positions, settlement logic, leverage)
  • Premium Model: Black-Scholes-based suggested premiums + market correction factor
  • Testing: Extensive test suite for contract functionality
  • Frontend (in progress): React-based UI for seamless position management
  • Oracle (mocked): Real-time pricing feed for asset valuation

Challenges we ran into

  • NFT API inconsistencies when fetching position data
  • Clarity post-conditions complexity; interim workaround applied
  • Refining position closure and payout calculations
  • Balancing long/short incentives via premium corrections

Accomplishments that we're proud of

  • Fully automated NFT-backed forward contracts
  • Integrated premium system with leverage support
  • Smart contract overhaul—optimized for security and scalability
  • Multi-asset forward contract capability (EUR, USD, more coming)

What we learned

  • Deep derivatives modeling (Black-Scholes + DeFi adjustments)
  • Complex smart contract logic on Stacks blockchain (Clarity)
  • Designing decentralized liquidity and incentive systems
  • Best practices in testing and modular contract architecture

What's next for BitForward

  • Complete frontend UI/UX
  • Integrate trusted oracle (Redstone)
  • Implement liquidation mechanisms + bot
  • Enable private counterparties & targeted contracts
  • Conduct full smart contract audit
  • Expand to more assets (gold, stocks, etc.)
  • Launch premium suggestion dashboard
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