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0 CommentsVelar has launched the world’s first Bitcoin perpetual swaps decentralized exchange (DEX) in beta, attempting to create more utility around the world’s first cryptocurrency.
The new Velar Artha perpetual swaps DEX launched on BOB (Build on Bitcoin) on Sept. 16, according to an announcement shared with Cointelegraph.
The milestone launch could unlock newfound Bitcoin liquidity for the ecosystem, according to Mithil Thakore, the co-founder and CEO of Velar.
The CEO told Cointelegraph:
“For the first time, retail and institutional BTC holders can earn a yield on native Bitcoin through providing liquidity or trading. This brings DeFi-like functionality directly to Bitcoin without the need for wrapping or bridging, potentially increasing Bitcoin’s utility and value proposition.”
Velar is among the companies building Bitcoin-based decentralized finance (DeFi), also known as BTCFi, in a new technological paradigm that aims to bring DeFi capabilities to the world’s first blockchain network.
Bitcoin could dominate the DeFi space in the next five years
While Ethereum remains the established home of DeFi and smart contracts, increasingly more firms are building DeFi capabilities on the Bitcoin network.
The continued BTCFi innovation could see Bitcoin dominate the DeFi landscape in the next five years, according to Thakore, who explained:
“Ethereum’s early lead in DeFi is likely to fade as users and developers recognize Bitcoin’s superior monetary properties and true decentralization. This wave of innovation will attract a flood of users and capital to Bitcoin DeFi, overshadowing all previous crypto adoption.”
Continued BTCFi innovation could make Bitcoin the “definitive platform for decentralized finance,” added the co-founder.
Over 100 Bitcoin L2 chains are currently being developed
Layer-2 (L2) networks like Stacks are essential for creating more utility around Bitcoin since the mainnet has no smart contract functionalities.
BTCFi could see an array of new use cases due to the over 100 L2s being developed around the world’s first blockchain network, explained Thakore:
“With over 100 Bitcoin Layer 2 solutions currently in development, we’re witnessing a major shift in the crypto landscape. These new Layer 2 solutions with smart contract capabilities on Bitcoin will quickly surpass Ethereum’s functionality while maintaining Bitcoin’s core strengths.”
The prediction comes nearly two weeks after Binance Labs and Tim Draper-backed Zest Protocol launched its new BTCz token, enabling Bitcoin holders to earn a staking yield on their BTC via Babylon Protocol.
Source: https://cointelegraph.com/news/velar-launches-bitcoin-perp-dex
