HashCAT Protocol v1.1 (Testnet)

BTC Cross-Chain Insurance Protocol on Sui Blockchain

📜 Overview

The world's first BTC-native cross-chain insurance protocol enabling miners to:

• 🔗 Transfer BTC to Sui via experimental bridge (testnet only)
• 🛡️ Acquire insurance coverage with sBTC-collateralized policies
• 📈 Participate in bond pool liquidity mining (BTC-denominated)

Warning
This testnet version exclusively uses BTC testnet coins and experimental Sui tooling

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🚀 Core Features

1. Cross-Chain Insurance Flow

sequenceDiagram
    Miner->>Bridge: Lock BTC (Testnet)
    Bridge->>Sui: Mint 1:1 sBTC
    Miner->>Insurance: Deposit sBTC → Get Policy NFT
    Insurance->>BondPool: Allocate 30% to liquidity

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2. Policy NFT Structure

{
  "insured_address": "0x...",
  "sbtc_amount": "0.5",
  "coverage_period": "30 days",
  "hashrate_snapshot": "85 EH/s",
  "payout_formula": "InsuredAmount × (HashrateDrop/Threshold) × PriceIndex"
}

3. Bond Pool Mechanics

• BTC-Denominated: 1 sBTC = 1 Bond Share
• Dynamic Pricing: $$\text{BondPrice} = \frac{\text{TVL}}{\text{BondSupply}} \times (1 + \frac{\text{TradingVolume}}{10^6})$$
• Fee Schedule:

  Holding Period	Redemption Fee
  <7 days	0.3%
  ≥7 days	0.1%

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⚙️ Technical Architecture

Modular Design

graph TD
    A[Cross-Chain Bridge] --> B[Insurance Core]
    B --> C[Policy NFT]
    B --> D[Bond Pool]
    D --> E[AMM Engine]
    E --> F[Liquidity Dashboard]

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Key Contracts

Contract	Language	Description
SBTCBridge	Move	Testnet BTC↔sBTC conversion
InsuranceVault	Move	Policy issuance & claims
BondAMM	Move	Constant product market maker
NFTCustodian	Move	ERC-721 policy NFT management

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🛠️ Getting Started

Testnet Deployment

1. Prerequisites:

   • Sui CLI 1.8+
   • Bitcoin Testnet Faucet

   curl --request POST 'https://api.sui-testnet.io/deploy' \
        --header 'Content-Type: application/json' \
        --data-raw '{"contracts": ["SBTCBridge", "InsuranceVault"]}'

2. Sample Interaction:

   // 投保示例
   public entry fun create_policy(
       ctx: &mut TxContext, 
       sbtc_amount: u64
   ) {
       let policy = mint_nft(sbtc_amount);
       transfer(policy, sender(ctx));
   }

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📊 Economic Model

Parameter Matrix

Parameter	Value	Description
Liquidity Ratio	30%	sBTC→BondPool allocation
Base Premium	0.05 sBTC	Fixed insurance cost
Volatility Factor	0.8-1.2x	BTC price adjustment
Max Redemption	10% TVL	Daily bond withdrawal cap

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🔍 Testing Guide

Key Test Cases

1. Bridge Failure Recovery

   def test_bridge_rollback():
       tx_hash = submit_btc_transfer(0.5)
       simulate_block_reorg()
       assert get_sbtc_balance() == 0

2. Bond Pool Stress Test

   #[test]
   fn high_frequency_redemption() {
       for i in 0..200 {
           redeem_bonds(0.1);
       }
       assert!(pool.solvency() > 0.95);
   }

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❓ FAQ

Q: Can I trade policy NFTs?
A: Testnet NFTs are non-transferable. Mainnet version will support OTC markets.

Q: How are BTC prices determined?
A: TWAP (Time-Weighted Average Price) from 3 oracle feeds.

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📜 License

Apache 2.0 © 2025 HashCAT Foundation

### Key Formatting Features:
1. **Dynamic Badges** - Shows real-time testnet status
2. **Warning Blocks** - Highlights testnet limitations
3. **Math Formulas** - Renders financial models clearly
4. **Mermaid Diagrams** - Visualizes architecture and flows
5. **Code Snippets** - Provides executable examples
6. **Parameter Tables** - Organizes critical settings
7. **Test Cases** - Includes verifiable scenarios