The Mechanism

We call our system "The Mechanism" - it's how you go from holding stablecoins to owning the top 10 crypto market in seconds.

Step-by-Step Flow

CONNECT - Connect your wallet (MetaMask, Phantom, Trust Wallet, etc.)
DEPOSIT - Deposit stablecoins (USDC or USDT)
ACQUIRE - BIT10 smart contracts automatically acquire the top 10 assets
RECEIVE - You receive BIT10 TOP tokens in your wallet
HOLD - Your portfolio auto-rebalances daily

What Happens Behind the Scenes

When you deposit stablecoins:

Price calculation - Our oracle fetches current prices for all top 10 assets
Weight calculation - Market caps determine allocation percentages
Asset acquisition - Smart contracts acquire native assets via integrated DEXs
Collateral storage - Assets are stored in secure canisters/contracts
Token minting - BIT10 TOP tokens are minted to your wallet
Verification - All transactions recorded on-chain for transparency

All of this happens automatically. You just deposit and receive.

The Simple Flow

┌─────────────┐     ┌──────────────┐     ┌─────────────┐
│  You Deposit│ ──▶ │  BIT10 Buys  │ ──▶ │ You Receive  │
│  USDC/USDT  │     │ Top 10 Assets│     │  BIT10 TOP   │
└─────────────┘     └──────────────┘     └─────────────┘

The Burn Mechanism (Selling)

When you sell or redeem BIT10 TOP tokens, the reverse process occurs:

┌─────────────┐     ┌──────────────┐     ┌─────────────┐
│  You Submit  │ ──▶ │  BIT10 Sells │ ──▶ │ You Receive  │
│  BIT10 TOP   │     │ Underlying   │     │  Stablecoins │
└─────────────┘     └──────────────┘     └─────────────┘

You submit your BIT10 TOP tokens for redemption
Smart contracts sell the proportional underlying assets
BIT10 TOP tokens are burned (removed from circulation)
You receive stablecoins back in your wallet

No lockups. No waiting periods. Your tokens, your choice.

Technical Overview

BIT10 operates on ICP's technical architecture, using canisters for tamper-proof operations, oracles for pricing, and chain-key technology for cross-chain interactions.

Component	Purpose
ICP Canisters	Tamper-proof smart contracts
Price Oracles	Real-time market data
Chain-Key Technology	Cross-chain interactions
DEX Integration	Asset acquisition
Secure Storage	Native asset custody

Action	Transactions	Gas Fees
Buy BTC	1	$X
Buy ETH	1	$X
Buy XRP	1	$X
Buy BNB	1	$X
Buy SOL	1	$X
Buy TRX	1	$X
Buy DOGE	1	$X
Buy ADA	1	$X
Buy HYPE	1	$X
Buy LINK	1	$X
Total	10	10X

Action	Transactions	Gas Fees
Buy BIT10 TOP	1	$X
Total	1	X

Selling / Redeeming

Want to exit? Just as simple:

Go to bit10.app
Select "Sell" or "Redeem"
Choose amount of BIT10 TOP
Receive stablecoins (or underlying assets)

No lockups. No waiting periods. Your tokens, your choice.

How Rebalancing Works

BIT10's backend constantly monitors the performance of the cryptocurrencies in the index fund. We track the top 10 cryptos (excluding stablecoins) for BIT10 TOP.

If a crypto falls out of the top 10 due to a drop in market cap, it is removed from the fund and a new cryptocurrency that was previously in position 11 takes its place. Rebalancing occurs daily at 11AM GMT.

BIT10 uses market cap weighting as opposed to a simple average.

Automatic Rebalancing

Like the S&P 500, BIT10 TOP adapts:

Assets that grow get added weight
Assets that shrink lose weight

Daily Rebalancing Schedule

Snapshot: Current market caps recorded, new target weights calculated (e.g., BTC 69.91%, ETH 14.35%, etc.)

Adjustment: Compare current holdings to targets, calculate required trades, execute buys/sells to align weights

Hold: Portfolio matches market-cap weights. Repeat every day at 11AM GMT.

Real Example

NVIDIA wasn't in the S&P 500 in 2017. Today it's the largest company. Kodak was a giant in the 1990s. It was removed in 2004. The index adapts. BIT10 TOP adapts too.

Top 10 Changes

If a crypto falls out of the top 10 due to a drop in market cap:

It's removed from the fund
A new cryptocurrency (previously #11) takes its place
Weights are adjusted automatically

You don't have to do anything. The index adapts.