Defi has been around but for the first time there is something called bitcoin DeFi. The cryptocurrency landscape has witnessed a remarkable transformation over the past year, with Bitcoin (BTC) leading the charge. After starting 2023 at a valuation of around $25,000, the world’s largest cryptocurrency has surged by over 165% to its current price of $66,000 as of mid-May 2024. This remarkable price appreciation has been accompanied by a rapid expansion of Bitcoin’s utility, particularly in the realm of decentralized finance (DeFi).

Velar’s Mission to Unlock DeFi Potential

At the forefront of this DeFi revolution is Velar, a leading innovator in the space. Velar has been on a mission to unlock the full potential of Bitcoin-based assets, developing a suite of powerful tools and products that leverage the cryptocurrency’s unrivaled security and transaction finality.

Velar’s Expansion Beyond Stacks

One of Velar’s latest milestones in this endeavor is its partnership with Bitlayer, a layer 2 network built atop the BitVM. This collaboration has resulted in the creation of Velar Artha, the world’s first perpetual decentralized exchange (PerpDex) built on the Bitcoin network.

The launch of Velar Artha marks a significant step for Velar, as it represents the company’s first partnership outside of the Stacks ecosystem. This expansion signifies Velar’s commitment to bringing its innovative DeFi solutions to a broader range of strategic partners, further solidifying its position as a leading force in the DeFi landscape.

Bitlayer: Bridging the Gap Between Bitcoin and DeFi

Bitlayer, the partner in this groundbreaking collaboration, is the first Bitcoin security-equivalent layer 2 solution built using the BitVM. This innovative approach allows Bitlayer to support multiple virtual machines (VMs), including an EVM-compatible environment. This feature makes it easier for developers to create DeFi applications that leverage the robust tooling synonymous with Solidity, the native programming language for Ethereum smart contracts, while still harnessing the unmatched security of the Bitcoin network.

Bitlayer’s Unique Approach to DeFi

Bitlayer’s unique approach to DeFi is a game-changer, as it enables the seamless integration of DeFi protocols and tools on the Bitcoin blockchain. This integration unlocks a world of possibilities for Bitcoin holders, who can now participate in a wide range of DeFi activities without incurring any custodial risks.

Introducing Velar Artha: The World’s First BTC-Based PerpDex

The centerpiece of the Velar-Bitlayer collaboration is the launch of Velar Artha, the world’s first perpetual decentralized exchange (PerpDex) built on the Bitcoin network. This groundbreaking development represents a significant milestone for the entire Bitcoin ecosystem, as it provides traders with the ability to engage in perpetual contract trading directly on the Bitcoin blockchain.

Perpetual Contracts: A Game-Changer for DeFi

Perpetual contracts, which offer leveraged exposure to trading various crypto assets without an expiry date, have been popular DeFi products. However, until now, these tools have only been available on non-Bitcoin blockchains. The creation of Velar Artha changes this, unlocking numerous perpetual trading capabilities for investors while harnessing the unique advantages of the Bitcoin network.

Harnessing Bitcoin’s Idle Capital and Security

By building the PerpDex atop Bitlayer’s operational framework, Velar Artha seeks to unlock the billions of dollars in idle capital within the Bitcoin ecosystem, allowing BTC holders to fully participate in DeFi activities without bearing any custodial risks. This integration also ensures that all transactions on Velar Artha benefit from the unrivaled security and decentralization inherent to the Bitcoin network.

The Visionary Partnership Behind Velar Artha

The collaboration between Velar and Bitlayer is driven by a shared vision for Bitcoin’s potential as the foundation for a new financial infrastructure. Velar CEO Mithil Thakore and Bitlayer co-founder Charlie Yechuan Hu have expressed their excitement about working together to realize this vision.

Aligning on Bitcoin’s Transformative Potential

Thakore emphasized the importance of partnering with someone who truly understands and shares Velar’s vision for Bitcoin’s future, stating, “Charlie Hu and I share a common vision for Bitcoin’s potential as the foundation for a new financial infrastructure, and I couldn’t be more excited to work with someone who truly understands and shares that vision.”

Hu echoed this sentiment, believing that the integration of Velar on Bitlayer can help unlock a myriad of “asymmetric opportunities” within Bitcoin’s rapidly expanding DeFi ecosystem. “Bitlayer is excited to support Velar’s perpetual DEX DeFi product to meet the on-chain perpetual trading demand in the Bitcoin community,” he said.

Overcoming Bitcoin’s Limitations

However, recent technical developments, such as the BRC-20 token standard and the emergence of Ordinals (Bitcoin’s version of NFTs), have unlocked new use cases and paved the way for the growth of Bitcoin-based DeFi. These innovations have enabled the tokenization of assets and the creation of metaverse experiences directly on the Bitcoin network, further expanding its utility.

Realizing Bitcoin’s Full Potential

As the crypto sector continues to mature, the various innovations surrounding the Bitcoin network are helping to lay the groundwork for its associated ecosystem. Fifteen years after its inception, Bitcoin seems to be finally realizing its full potential, with the launch of Velar Artha on Bitlayer’s layer 2 solution serving as a testament to the network’s transformative capabilities.

The Implications of Velar Artha for the Bitcoin DeFi Ecosystem

The launch of Velar Artha on Bitlayer’s Bitcoin layer 2 solution has far-reaching implications for the broader ecosystem. By providing traders with the ability to engage in perpetual contract trading directly on the Bitcoin blockchain, Velar Artha is set to unlock new opportunities for asset trading and expand the capabilities of decentralized finance operating on Bitcoin rails.

Unlocking Billions in Idle Capital

Moreover, the integration of Velar Artha on Bitlayer’s operational framework aims to unlock the billions of dollars in idle capital within the Bitcoin ecosystem, allowing BTC holders to fully participate in DeFi activities without bearing any custodial risks. This development represents a significant step forward in realizing Bitcoin’s potential as a foundation for a new financial infrastructure.

Fostering Innovation and Collaboration

The collaboration between Velar and Bitlayer also serves as a testament to the growing momentum and innovation within the defi space. As the crypto sector continues to evolve, it is likely that we will see more strategic partnerships and innovative solutions emerge, further driving the adoption and integration of Bitcoin-based DeFi applications.

Conclusion: The Dawn of a New Era for DeFi

The launch of Velar Artha, the world’s first perpetual decentralized exchange on the Bitcoin network, marks a pivotal moment in the ongoing evolution of DeFi. This groundbreaking collaboration between Velar and Bitlayer has the potential to unlock new opportunities for traders, unleash the vast pools of idle capital within the Bitcoin ecosystem, and pave the way for the future of finance on the world’s largest cryptocurrency.

As the crypto industry continues to mature, the innovations surrounding the Bitcoin network are set to play a crucial role in shaping the future of decentralized finance. With the launch of Velar Artha, Bitcoin is poised to cement its position as a foundational layer for a new era of financial innovation, solidifying its status as a transformative force in the ever-evolving world of cryptocurrency.

FAQs

What is Velar Artha and how is it significant for DeFi?

Velar Artha is the world’s first perpetual decentralized exchange (PerpDex) built on the Bitcoin network. It allows traders to engage in perpetual contract trading directly on the Bitcoin blockchain, unlocking new opportunities for asset trading and expanding the capabilities of decentralized finance operating on Bitcoin rails.

What is Bitlayer’s unique approach to DeFi?

Bitlayer enables the seamless integration of DeFi protocols and tools on the Bitcoin blockchain, unlocking a world of possibilities for Bitcoin holders to participate in a wide range of DeFi activities without incurring any custodial risks.

How does Velar Artha aim to harness Bitcoin’s idle capital and security?

Velar Artha seeks to unlock the billions of dollars in idle capital within the Bitcoin ecosystem, allowing BTC holders to fully participate in DeFi activities without bearing any custodial risks. It also ensures that all transactions on Velar Artha benefit from the unrivaled security and decentralization inherent to the Bitcoin network.

What is the vision behind the collaboration between Velar and Bitlayer?

The collaboration is driven by a shared vision for Bitcoin’s potential as the foundation for a new financial infrastructure. It aims to unlock asymmetric opportunities within Bitcoin’s rapidly expanding DeFi ecosystem and pave the way for the future of finance on the Bitcoin network.

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