What is bitSmiley Protocol?
bitSmiley is a decentralized stablecoin protocol that allows users to mint bitUSD, an over-collateralized stablecoin designed to maintain a soft 1:1 peg with the U.S. dollar. It does this using Bitcoin as collateral, ensuring transparent issuance and verifiable backing through an open protocol.
The goal is simple but bold: to bring price stability to Bitcoin-native applications without compromising on decentralization or security. By enabling developers and institutions to transact using a Bitcoin-backed stablecoin, bitSmiley is creating a programmable, composable, and censorship-resistant alternative to fiat-backed stablecoins but built entirely on Bitcoin.
How does bitSmiley use Torram?
bitSmiley relies on Torram’s Bitcoin-native middleware to bring core components like oracle functionality, smart contract programmability, and trustless token standards all without stepping outside the Bitcoin ecosystem.
Torram acts as the invisible infrastructure layer that allows bitSmiley to function in a fully decentralized, Bitcoin-aligned way. This includes three main integrations:
Key Integration Points
1. Bitcoin Native Oracles with On-Chain Merkle Proofs
bitSmiley uses Torram’s decentralized oracle network to access real-world price feeds like BTC/USD. Torram’s validator network aggregates data from multiple trusted sources (e.g., Coinbase, Kraken, Binance), computes VWAP (Volume Weighted Average Price), and reaches consensus using Threshold Signature Schemes (TSS).
Once consensus is achieved:
- A Merkle proof of the aggregated price data is generated
- The proof is embedded in a Bitcoin block
- Torram nodes then index the data from Bitcoin L1 after six confirmations
For bitSmiley, this means:
- Oracle data is verifiable directly from Bitcoin blocks
- No centralized relays or EVM dependency
- Trustless automation of bitUSD collateral thresholds and liquidation events
🔗 Learn more about this process: Powering Trustless Data on Bitcoin with Torram Oracles
2. Smart Contracts via CosmWasm, Anchored to Bitcoin
bitSmiley leverages CosmWasm a robust smart contract framework designed for modularity and safety. Through Torram’s middleware, CosmWasm-based smart contracts can operate with Bitcoin-native oracle data and event triggers, enabling functionality like:
- Auto-minting and redemption of bitUSD
- Collateral monitoring and rebalancing
- Trust-minimized governance logic
Torram handles the communication between on-chain oracle proofs and CosmWasm contracts, allowing bitSmiley to implement complex DeFi logic without ever leaving Bitcoin’s security layer.
🔗 Learn more: https://cosmwasm.com
3. Native Tokenization with TSB (Tokens That Don’t Break Bitcoin)
bitSmiley benefits from TSB, Torram’s token standard designed to maintain Bitcoin’s ethos while enabling token programmability. Unlike wrapped tokens or synthetic assets, TSB tokens are directly anchored to Bitcoin blocks, enabling:
- Seamless issuance of bitUSD with on-chain proof of collateral
- Transparent lifecycle tracking for each stablecoin
- Support for programmable Bitcoin-native assets without introducing execution-layer risk
🔗 Read the full explainer: TSB – Tokens That Don’t Break Bitcoin
Why is bitSmiley using Torram?
Building an over-collateralized stablecoin on Bitcoin is hard especially without access to smart contracts, oracles, or structured data feeds. Torram changes the game by providing:
- Bitcoin-native data infrastructure
- Programmable logic via CosmWasm
- Trustless token standards like TSB
- Full alignment with Bitcoin’s design philosophy (no sidechains, no centralized bridges)
With Torram, bitSmiley doesn’t need to rely on external networks or custodians. Instead, it can build a fully sovereign stablecoin protocol rooted entirely in Bitcoin L1 with verifiable oracles, secure contract logic, and composable token standards.
This integration allows bitSmiley to operate with the reliability of Bitcoin and the flexibility of modern DeFi without compromising on decentralization.
What’s Next for bitSmiley × Torram?
This partnership marks a milestone for Bitcoin-native DeFi and it’s just the beginning.
Together, Torram and bitSmiley are working on:
- Advanced automation for minting/redemption cycles using on-chain triggers
- Oracle visualization dashboards powered by Torram indexers for full transparency
- Proof-based collateral tracking, anchored to Bitcoin
- Developer tools and templates to help others build on top of bitSmiley and Torram infrastructure
- Community workshops to grow awareness around Bitcoin-native stablecoins and programmable finance
Final Thoughts
bitSmiley and Torram are showing what’s possible when you build for Bitcoin, not around it.
This partnership is more than just middleware and stablecoins it’s about creating credible, trustless financial infrastructure that respects the core values of decentralization, transparency, and resilience.
As builders and institutions look for serious alternatives to centralized stablecoins and multi-chain complexity, bitSmiley x Torram offers a new vision: Bitcoin-native money, powered by Bitcoin-native infrastructure.
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