Charms

Enchant Bitcoin with your own spells 💎 ✨

Programmable apps and assets on Bitcoin powered by zkVM

[Charms @CharmsDev]

Bitcoin and Cardano are now united by Charms. 🟠🤝🔵

We sent eBTC and BRO to Cardano.
We sent ADA, SNEK, and USDM to Bitcoin.
We unlocked cross-compatible Rust+WASM dapps for both chains.

The Universal App Protocol for UTXO, powered by zkVM.💎

Megathread; w/ receipts 🧵👇

[Ivan Mikushin @imikushin]

"Comfort is not the same as ownership, and abundance is not the same as freedom." 🔥

Governments will print and erase most of AI productivity gains. Takeaway: Bitcoin is the only way to preserve economic energy.

[Ivan Mikushin @imikushin]

@AThrouvalas @SundialProtocol

[Ivan Mikushin @imikushin]

While it's sad the proposal didn't get enough support, I am going to continue building Alchemy as a Bitcoin DeFi protocol.

Charms enable such products to be built directly on Bitcoin. The resulting derivative assets are charms, so they will be available natively on Cardano. You will only be able to mint and redeem them on Bitcoin though.

Have a great day everybody.

[Sundial @SundialProtocol]

Alchemy Announcement

First, thank you to everyone who read, engaged with, and believed in the future of Alchemy Protocol. We believe our work with Charms could bring significant Bitcoin liquidity to Cardano while creating a first-of-its-kind Bitcoin Treasury Protocol.

We're incredibly proud of Alchemy. Thanks to @AThrouvalas, @imikushin, @sde_laney, and @_MrHunt_, along with the entire Sundial and Charms teams, we built a novel solution for bringing Bitcoin to Cardano. We even began minting FIRE on the Bitcoin testnet and improved on the Digital Asset Treasury model pioneered by Strategy.

After reflecting on the Cardano treasury and broader market conditions, and after speaking with DReps across the community, Sundial and Charms have decided not to proceed with the Alchemy treasury proposal at this time.

This decision wasn't made lightly. We firmly believe Alchemy has a place in both the Bitcoin and Cardano ecosystems, and it's a project we hope to revisit in the future. For now, though, both teams agree it's best to step back.

We recognize that the community's current priorities lie elsewhere, and we respect that. We still believe diversifying the treasury and creating investment opportunities is critically important. But in crypto, timing is everything.

Thank you to everyone who helped and believed in this proposal. Sundial and Charms will continue building on their respective projects, and we'll share more when the time is right.

[Ivan Mikushin @imikushin]

Happy 250th Birthday America! 🇺🇸

[Charms @CharmsDev]

"Beaming" is a tool for teleporting charms from one chain to another.💎🖖

The asset is destroyed on Bitcoin and re-materialized on Cardano, with a zero-knowledge proof tying the actions together. 🟠🧬🔵

Read more about beaming in our docs:
🔗https://t.co/zCq9EYKC7W

[Charms @CharmsDev]

Scrolls are distributed custodians and signers, powered by @dfinity, that can control how bitcoin (and other tokens) move according to customizable, on-chain Charms programs.

That makes any DeFi app possible on Bitcoin.

Read more in our new docs:
🔗https://t.co/nigmiMsatN

[Charms @CharmsDev]

Charms v15 is now live. 💎

We have introduced a new charms tag: 's' for Scrolls - Bitcoin outputs provably locked to programmable custody w/ Charms.

We have also introduced versioned apps, allowing Bitcoin builders to upgrade smart contract apps over time.

Read more: 🔗https://t.co/tKGueElHs5

[Sundial @SundialProtocol]

Our Alchemy Treasury Proposal is now live!☀️

Alchemy is the first Bitcoin treasury protocol that reimagines Strategy’s digital credit model as a blockchain-native BTCFi app and asset pair on Cardano.

Thanks to all of the community for the feedback we received on our initial announcement. We have taken all of this into account to adjust and perfect our ideas.

Make sure to read the proposal below, and we will be happy to answer any questions👇

https://t.co/JA0HQxmtb4

[Samiz Bayan @samizb]

Most smart money looks at Bitcoin and sees a store of value. I think that framing ages badly, and the teams building right now are why.

A generation of founders is building the lending, payments, insurance, credit, privacy, and programmability layers that turn BTC from a passive holding into capital that works.

[Sheldon Hunt 🛡️ @_MrHunt_]

I genuinely believe Cardano NEEDS this.

Deep collaboration, innovative tech, transparent on-chain Bitcoin infrastructure + liquidity.

Let's change the game! 🔵🤝🟠

Encourage your Drep to vote YES for Alchemy and to build the growth infrastructure Bitcoin needs here on Cardano

[Charms @CharmsDev]

The proposal is live. 🟠🤝🔵

Alchemy by Sundial x Charms: Cardano-Native Bitcoin Treasury Protocol.

Support our effort to grant Cardano its first killer Bitcoin app. 👇

🔗https://t.co/Zg1Uj5yayg

[Charms @CharmsDev]

Bitcoin's 200-week moving average has not fallen for over ten years.

Volatile in the short term, but always growing in the long term against debasing fiat.

Zoom out.

[Charms @CharmsDev]

Alchemy requires...

A smart contract BTC vault. 🟠
Programmable assets (FIRE + ICE) minted against that vault🔥🧊
Asset compatibility with Cardano DeFi 🔵

Charms is the stack including all three. 💎

[Charms @CharmsDev]

How much demand is there for Alchemy? 💎

Let's look at the precedents.

MSTR (amplified BTC): $41.8 billion
Babylon (BTC yield): $3.5 billion
STRC: (stabilized BTC) $10.4 billion
APYX + Saturn (on-chain STRC): $750M

The money is out there. Alchemy taps all of it.

[Sundial @SundialProtocol]

Let's take another look at our latest product, Alchemy✨

Bitcoin has become the world's leading digital asset, but it still presents a challenge: for long-term holders, it isn't productive.

Alchemy, in partnership with @CharmsDev, is designed to solve this by transforming a shared BTC reserve into two complementary assets tailored to different risk profiles.

🔥 FIRE (BTC+) - High-temperature Bitcoin
FIRE concentrates Bitcoin's volatility into a single asset. As BTC appreciates, FIRE holders capture amplified upside. In return, FIRE absorbs downside volatility first during market declines.
The result is a BTC-backed asset designed for users seeking greater exposure to Bitcoin's long-term growth potential.

🧊 ICE (BTC-) - Low-temperature Bitcoin
ICE takes the opposite approach.
By filtering out much of Bitcoin's short-term volatility, ICE provides more predictable, USD-denominated growth while remaining backed by the same underlying BTC reserve.

The relationship between FIRE and ICE is what makes Alchemy unique. FIRE holders provide the volatility buffer that supports ICE's stability, while ICE holders enable FIRE's amplified exposure.

The model draws inspiration from the growing demand for Bitcoin-backed credit products seen in traditional markets, but reimagines them as a transparent, blockchain-native system. Instead of relying on corporate issuers and intermediaries, FIRE and ICE are created through protocol rules and direct BTC redemption.

The broader idea is simple:
Not every Bitcoin holder wants the same thing - some want productivity, and some want predictability.

Alchemy makes both possible from the same Bitcoin reserve.

[Charms @CharmsDev]

Trouble understanding Alchemy? Use the simulator.

🔗https://t.co/gQaMa0QULo

Watch how FIRE and ICE react to changes in bitcoin's price and the reserve ratio. BTC moves -> FIRE moves more; ICE stays frozen

One bitcoin reserve, two financial temperatures.🔥🧊

[Strategy Simulator @MSTR_simulator]

GM Cardano,

To understand how Alchemy will ignite Bitcoin DeFi in your ecosystem, you must see how the economics of FIRE (BTC+) and ICE (BTC-) actually work.

Think of Alchemy like the first onchain, bitcoin-backed bank. FIRE holders are like the equity holders in the bank, while ICE holders are like customers with a savings account.

Observe the simulator below. Both assets are minted with BTC, and backed by the same BTC reserve, but their value reacts to bitcoin's price changes in vastly different ways that appeal to different investor profiles.

FIRE is amplified exposure. When BTC moves, the FIRE price moves with it, and then some. It's even more volatile than BTC in the short term, with potential for even greater gains than BTC in the long term as the asset keeps appreciating.

ICE is the opposite. It provides gradual growth in USD - less than BTC's long-term growth rate (starting around ~9.5% to 10% APR estimated). In return, holders don't need to sweat the volatility: ICE holders' exposure doesn't change whether the price goes up or down.

The assets are complementary. FIRE minters provide the downside buffer for risk-averse ICE holders. ICE holders provide the amplified upside for risk-tolerant FIRE holders.

In a sentence: Alchemy *strips* bitcoin's excess volatility and risk away from ICE , and concentrates it into FIRE.

This is the same economic structure that Strategy is using to take the securities market by storm. MSTR ($42 billion) is an amplified bitcoin. STRC ($10.4 billion) is a stabilized bitcoin.

Both are insanely popular. Why? Because not every investor wants or needs the same thing.

Some want their BTC to be *productive.* Others want their BTC to be *predictable.*

With Alchemy, bitcoin users can finally have both.

And they can use it on Cardano. 🟠🤝🔵

[Charms @CharmsDev]

Read our proposal: 🔗https://t.co/UF9gWutNGK

[Charms @CharmsDev]

FIRE makes bitcoin productive. 🔥

ICE makes bitcoin predictable. 🧊

Transform your BTC with Alchemy. Use it on Cardano. 🟠🤝🔵