ABM (Anti Bear Market) Protocol

ABM Protocol
3 min readFeb 25, 2021


As the bull market is going on, people are very confident about their “long” positions on Bitcoin.
But along with confidence comes a small pinch of doubt about losing their gains by rapid market decline overnight. Every investor goes through this dilemma, and this is when ABM Protocol(Anti Bear Market Protocol) was born.

Someone who is well versed with the crypto/stock market always knows that whatever that goes up always comes back down sooner or later.
Knowing this, it is also our major responsibility to capitalize the opportunity when the asset price is on top and buy back the asset when there is blood in the streets.This is a basic yet most powerful and important strategy to abide by .
It took bitcoin 3 years to get back to the peak again. The bitcoin might still grow unpredictably, and it is of atmost importance for anyone to capitalize on the gains and Stop/Prevent the market from eating your gains.

But How ?


The idea of capitalizing the upside potential and preventing downside, gave birth to “dotBTC” . The innovative derivative behind abm protocol, whose value mimics the BTC and keeps growing with BTC value as price grows , but stops mimicking BTC when its price declines and the price of “dotBTC” stays around ATH (All Time High) value keeping “dotBTC” investors in a safe spot preventing market to eat their gains.

Now, for all those who are puzzled , from where does “dotBTC” derive its value?

That’s pretty simple, “dotBTC” value is derived from vaults which hold assets whose value is always greater than derivative asset value.

Vault assets value > “dotBTC” value

Behavior of dotBTC

during Uptrend:
dotBTC follows BTC in an uptrend.

during Sidetrend:
dotBTC stays constant(local high).

during Downtrend:
dotBTC stays at the ATH.

How to generate dotBTC

  • User creates a vault and deposit collateral tokens into the vault.
  • Current collateralization ratio is asset specific to generate dotBTC.
  • The user can mint dotTokens based on the collateral deposited and collateralization ratios.
  • The creator of the vault must maintain the collateralization requirements at all times. If the collateralization ratios are not met, the vault will be liquidated to buy back the dotBTC minted and remaining collateral after paying back minted dotBTC will be returned back to the vault.
  • For maintaining the collateralization ratios , the creators of vault are rewarded with governance tokens , which is the backbone to governance decisions.

Our Official website: www.abmprotocol.com

Know more about ABM Protocol at ABM Documentation