In this AMA, Aki Balogh from dlcBTC, Mihail Thakur from Velar, and Abdel from DeepLake discuss groundbreaking advancements on Bitcoin Layer 1 and its expanding layers.

They explore the role of Discrete Log Contracts (DLCs), the future of decentralized finance (DeFi) on Bitcoin, and the latest developments in the ecosystem.

Follow this link to listen to the AMA recording:

 For a quick overview, we’ve prepared detailed call notes highlighting the key insights and innovations covered in the podcast.

Highlights

Understanding DLCs: A Game-Changer for Bitcoin

• Aki Balogh introduced DLCs, a tool for creating conditional payments on Bitcoin without requiring custodians.

• Developed by Tadge Dryja in 2018 and made possible by the Taproot upgrade, DLCs bring a new level of flexibility to Bitcoin, enabling trustless financial agreements.

• Key Use Cases: Cross-chain interoperability, lending, and non-custodial DeFi solutions.

Recent DLC Milestones:

• Hero Wallet Integration: DLCs are now integrated into Hero Wallet, making it easier for users to lock Bitcoin directly within the wallet.

• Ordinals Support: dlcBTC is working on adding support for Ordinals, enabling NFTs and other unique digital assets on Bitcoin L1, expected by the end of the year.

Velar’s Impact on Bitcoin DeFi:

• Mihail Thakur shared the success of Velar’s beta mainnet launch, which introduced a Uniswap V2-style DEX to the Stacks ecosystem.

• User Growth: Over 100,000 users have participated in the beta, with 90% being new to the Bitcoin ecosystem.

• Future Plans: Velar aims to introduce a Perpetual DEX in Version 2, allowing users to trade derivatives using native Bitcoin as collateral.

DeepLake’s Developer Tools:

• Abdel presented DeepLake’s efforts to streamline Bitcoin L1 development with user-friendly tools and APIs.

• Plug-and-Play Solutions: Developers can quickly integrate Bitcoin functionalities like staking and peer-to-peer lending using pre-built scripts.

• Advanced APIs: For more complex use cases, such as smart auctions and lending platforms, DeepLake offers flexible API solutions.

Strategic Insights

The Role of Interoperability:

Panelists emphasized the importance of connecting various Bitcoin layers and ecosystems.

DLCs are positioned to facilitate secure, non-custodial liquidity movement across different networks, which is essential for DeFi growth.

The Potential of Bitcoin DeFi:

Mihail Thakur predicted that as more advanced financial products are built on Bitcoin, its DeFi ecosystem could rival and even surpass Ethereum’s in the coming years, especially with the arrival of solutions like SBTC.

Expanding Bitcoin’s Use Cases:

Abdel highlighted that with the rise of Ordinals and new tools for integrating Bitcoin into various financial services, developers now have a robust foundation for creating innovative applications on Bitcoin L1.

For Developers:

• Dive into Bitcoin’s growing ecosystem by exploring the new tools and integrations available through dlcBTC and DeepLake.

• The time is ripe to build on Bitcoin, leveraging its security and decentralization for new use cases.

For the Community:

• Join the movement to bring more liquidity and utility to Bitcoin.

• Participate in platforms like Velar and stay engaged with the latest developments to help shape the future of decentralized finance on Bitcoin.

About dlcBTC

As a decentralized wrapped Bitcoin, dlcBTC leverages Discreet Log Contracts (DLCs) and Chainlink's Cross-Chain Interoperability Protocol (CCIP) to provide a theft-proof bridge to cross-chain DeFi, backed by the security of the Bitcoin network. dlcBTC unlocks yield for your Bitcoin in DeFi with the benefit of lower fees and merchant self-custody, empowering users to put their Bitcoin to work.

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