Bitcoin’s First Synthetic Dollar - The $NUSD by BAMK

24 May 2024

A Closer Look at the Factors Behind’s Rapid Rise

In the fast-changing Bitcoin landscape, has made significant strides since the last update just 8 days ago. For those unfamiliar, is an innovative platform focused on creating decentralized financial solutions on the Bitcoin network. said in a Tweet on May 23rd:

Bamk’s mission is to spread stable liquidiy across utxo protocols

Refresher (BAMK) is a pioneering project that seeks to revolutionize the financial landscape by integrating synthetic assets and advanced financial protocols directly on the Bitcoin blockchain. By doing so, BAMK provides users with access to innovative financial products that combine the security and reliability of Bitcoin with the flexibility of modern financial engineering.

Introducing $BAMK and $NUSD

$BAMK (BAMK•OF•NAKAMOTO•DOLLAR) is the Rune token that BAMK launched at Rune #5220 and by doing so, introduced itself to the world in a big way. We’re not yet completely sure, but the Rune seems to act as a showcase for BAMKs synthetic dollar on Bitcoin - $NUSD (Nakamoto USD). This launch of $BAMK (BAMK•OF•NAKAMOTO•DOLLAR) appeared to be a clever maneuver and a way to attract initial interest while introducing and demonstrating the platform's innovative approach to decentralized finance.

A New Era of Bitcoin Transformation

The Bitcoin ecosystem is undergoing a massive and rapid transformation right at this very moment in real-time. It feels like a Bitcoin Enlightenment moment for many on the front lines. Innovations like Ordinals and Runes are reshaping how we think about and interact with the blockchain, paving the way for pioneering projects like BAMK. The synthetic dollar, $NUSD, represents just the beginning of what is possible as the capabilities of Bitcoin continue to be explored and expanded. Let’s take a closer look.

The Genesis: Bitcoin Ordinals and Runes Protocol

The journey of BAMK and the Nakamoto Dollar is deeply intertwined with the groundbreaking developments in the wider Bitcoin space, particularly Bitcoin Ordinals and the evolution of the Bitcoin Runes Protocol. Bitcoin Ordinals, conceived by Casey Rodarmor, introduced a novel way of inscribing data onto the Bitcoin blockchain, creating unique, immutable digital artifacts. This innovation opened new avenues for decentralized finance and digital asset management.

Building on the foundation laid by Ordinals, the Bitcoin Runes Protocol emerged, offering a more flexible and scalable approach to on-chain inscriptions. The protocol, developed by a dedicated team of Bitcoin enthusiasts and developers, has enabled a wave of new projects, including synthetic assets like $NUSD, which seemingly don’t even have a direct connection, and yet, here we are.

The Impact of Bitcoin and ETH ETFs

The recent approval of the Bitcoin ETF and the brand new ETH ETF by the SEC is set to inject a significant amount of fresh capital and liquidity into the crypto sector as a whole. This influx of investment is expected to benefit not only Bitcoin and Ethereum but also emerging projects like BAMK, as well as its competitors. The increased liquidity and capital flow should provide the necessary fuel to push these projects through to escape velocity, where their growth becomes unstoppable and they begin to set new ground rules in the Bitcoin ecosystem which further opens doors for even newer projects to build atop.

The Significance of Runes

The valuation of top Runes, such as Z•Z•Z•Z•Z•FEHU•Z•Z•Z•Z•Z at over $2 billion and DOG•GO•TO•THE•MOON nearing half a billion dollars, clearly indicates that Runes are here to stay. These valuations demonstrate the growing importance of Runes in the crypto ecosystem. BAMKs novel use of its BAMK•OF•NAKAMOTO•DOLLAR Rune to attract initial interest and investors is a seemingly well-thought-out and executed marketing tactic, but is that all it is? There are rumors we will touch on a little bit that suggest, potentially, that the $BAMK Rune might also serve as a governance or points token. Nevertheless, this innovative use of Runes showcases the big brains behind BAMK.

Rumors Surrounding BAMKs Points System

Intrigue surrounds BAMKs TPA (Total Points Added/Accumulated?) system. There are rumors that TPA points are $BAMK tokens distributed to holders of $NUSD, while others speculate it might be a different kind of reward or APY system that is being displayed. The specifics remain unclear at this stage, but one thing is certain: the TPA points listed on the website continues to grow as the site is refreshed.

Discussions in the BAMK Telegram chat suggest that these points accumulate with each new Bitcoin block. One popular theory is that any address holding $NUSD per Bitcoin block will be rewarded with these points at a later stage. What these points can be redeemed for, how they are paid out, or what they even symbolize remains a mystery.

$NUSD: A Synthetic Dollar Pegged to sUSDE

$NUSD is currently pegged 1:1 with sUSDE, part of the Ethena system, ensuring it maintains a consistent value lock. BAMK tells us in a Tweet on April 27, that this is simply phase 1, a bootstrapping method until phase 2, when:

the synthetic dollar ($NUSD) will be 100% hedged by simultaneously holding a long spot position of BTC and a short perpetuals position - this begins after the phase 1 bootstrap is complete.

Let us not forget how quickly this all happened.

Less than two weeks ago the following was printed:

BAMK, short for Bamk of Nakamoto Dollar, aims to create a 1:1 USD synthetic stablecoin on the Bitcoin network, using the ticker $NUSD (Nakamoto USD). Their project, BAMK Protocol or BAMK for short (initially, the NAKADO Protocol), seeks to establish the first Bitcoin Layer 1 synthetic dollar as was first inspired by ideas from crypto visionary Arthur Hayes.

Five days later on May 21, 2024, an initial 10,600 $NUSD was minted at Inscriptions 70937756 & 70847835. These were backed by $10,600 worth of sUSDe at 0xA284e606624e60d5e218cC2061bd85eD3E4f073f.

As of 7 hours ago, the latest mint sees 178,860 $NUSD at Inscriptions 71029415 & 71029720 backed by $178,860 worth of sUSDe held at 0xA284e606624e60d5e218cC2061bd85eD3E4f073f with a TVL of $421,620 $NUSD.

The Future of

BAMKs initial strategy of declining VC funding for a $40 million valuation has proven to be a stroke of genius. At the time, was merely conceptual in the eyes of the public, but this bold move allowed them to build momentum with organic support in the degen community. Now with tangible products and strong community backing, the $BAMK Rune boasts a market cap nearing $100 million, and the TVL for $NUSD has reached half a million dollars just two days after its launch. This approach has not only validated their vision but also positioned them for even greater success.

The foresight to forgo early VC investment has allowed to develop a robust, community-driven platform. As a result, venture capitalists are now almost certainly salivating at the potential. The next phase could see securing an astronomical valuation through VC funding, combined with retail interest and integration with other UTXO chains. This trajectory sets the stage for unprecedented levels of growth that we have not seen within the Bitcoin ecosystem to date.

As BAMK progresses, the commitment to pushing the boundaries of what Bitcoin can achieve remains steadfast. The future looks promising, with more updates expected as the journey of innovation and growth continues in this dynamic space.

Stay tuned for more developments and follow this exciting journey.