An atomic swap protocol aims to bring DeFi on Bitcoin without wrapped tokens – Crypto News BTC


Presented by Mintlayer

AtomiqDeFi, powered by Mintlayer’s modern atomic swap know-how, goals to reinforce interoperability, get rid of reliance on custodians and unlock new potentialities for decentralized finance on Bitcoin.

Making a decentralized finance (DeFi) ecosystem on Bitcoin (BTC) had by no means gained mainstream blockchain adoption earlier than the Taproot improve, which has opened the door to sensible contracts —self-executing codes that get rid of intermediaries— on Bitcoin’s layer 1 blockchain.

Tasks like Ordinals launched new capabilities to Bitcoin’s community and led to a surge in demand for Bitcoin’s DeFi performance. Customers started to comprehend that constructing on layer-1 had flaws, so builders started exploring layer-2 (L2) methods to handle the bottlenecks of constructing on layer 1. Though there have been already options for Bitcoin DeFi utilizing layer 2, most relied on Wrapped Bitcoin or wrapped tokens on the whole, which made it potential to make use of BTC throughout totally different blockchains.


Nevertheless, Wrapped Bitcoin and its derivatives required custodians for reserve administration, undermining decentralized constructions. The mannequin additionally launched counterparty dangers and extra assault vectors, resembling these seen in sensible contract breaches on Poly Community, a cross-chain interoperability protocol.

Wrapped BTC may introduce additional possible attack vectors, counterparty risk and concerns about centralization. Source: AtomiqDeFi

Wrapped BTC might introduce extra potential assault vectors, counterparty danger and issues about centralization. Supply: AtomiqDeFi

In response to Bitcoin DeFi challenges, atomic swaps emerged, eradicating the necessity for wrapped tokens. Atomic swaps facilitate direct transactions between blockchains whereas making certain simultaneous execution.

Overcoming Bitcoin DeFi-related dangers

As a Bitcoin L2 protocol, Mintlayer is growing the applied sciences to facilitate atomic swaps. Moreover, AtomiqDeFi, the primary mission incubated by Mintlayer, is growing a set of decentralized purposes (DApps) utilizing Mintlayer’s atomic swap know-how. These DApps will embody the world’s first Atomic-Swap-powered decentralized change (DEX) on Bitcoin. Charlie Shrem, founding father of the Bitcoin Basis, expressed his pleasure relating to the mission, stating:

“Exploring the frontiers of Bitcoin DeFi, Atomiq DeFi’s DEX and its atomic swaps know-how is nothing wanting revolutionary. It is like we’re opening a brand new chapter within the saga of blockchain evolution. Being one of many early believers in Bitcoin and Mintlayer, I can not assist however really feel a surge of pleasure seeing our path now merging with the groundbreaking efforts of Atomiq DeFi. It is a thrilling time to be a part of this journey.”

AtomiqDeFi is constructing an ecosystem of instruments, together with a launchpad, a decentralized change (DEX), an end-user-focused pockets and a cross-chain bridge, all powered by the Mintlayer protocol.

One of many ecosystem’s merchandise is the Atomiq DEX, which might be carried out in phases and permits customers to commerce Mintlayer-based tokens and BTC instantly from their wallets. The primary model of Atomiq DEX will allow same-chain atomic swaps. Later phases will permit the change of BTC and stablecoins for Mintlayer’s native token ML and property that help Mintlayer requirements. Lester Lim, founding father of X21 Digital, praised Atomiq DeFi’s DEX, saying:

“The introduction of Atomiq DeFi’s atomic swap-powered DEX marks a pivotal second for Bitcoin. It’s a testomony to the modern spirit driving the DeFi area and a transparent signal that Bitcoin’s untapped potential is lastly being realized.”

Mintlayer gives the Atomiq Pad for initiatives seeking to launch initiatives inside the ecosystem. The platform assists initiatives looking for early-stage liquidity and gives token distribution as an answer to assist kickstart their communities. It additionally goals to be suitable with the Lightning Community, an L2 cost channel for scalable transactions.

Past AtomiqPad, the ecosystem hosts a noncustodial pockets referred to as the Atomiq Pockets, which can help a number of cryptocurrencies and blockchain networks. With the pockets app, customers acquire full management over their digital property, together with the flexibility to stake tokens to profit, take part in governance and entry DApps.

The Atomiq Bridge marks a strategic growth for the workforce, aiming to spice up the ecosystem by enabling straightforward transactions between Ethereum Digital Machine (EVM) suitable chains. The mission is pursuing partnerships with bridge suppliers like Layer0 and Wormhole to assist pace up integration with the Mintlayer protocol.

Funded and comprised of Bitcoin trade specialists

On the helm of Atomiq DeFi is Zaid Ismail, who’s transitioning out from his position because the chief working officer of Mintlayer to the founder and CEO of Atomiq DeFi. Zaid’s journey from AI-driven healthcare innovation in New Zealand to engaged on enterprise automation platforms laid the inspiration for his position in blockchain know-how. Beneath his management, Atomiq DeFi turned the primary mission to obtain $1.5 million from the Mintlayer Ecosystem Fund, marking a step towards unlocking Bitcoin’s DeFi capabilities.

Atomiq DeFi secured its lead investor, X21 Digital, throughout a $3 million seed spherical that’s closing quickly. The present seed spherical contains outstanding enterprise capital companies, resembling NXGen, Dutch Crypto Traders (DCI Capital), Spicy Capital, Altcoin Buzz and the AlphaBit fund run by Liam Robertson. Moreover, Atomiq DeFi’s advisory board beneficial properties insights from Lester Lim of X21 and Charlie Shrem of the Bitcoin Basis, who purpose to assist steer the mission to success.

As Atomiq DeFi gears up for its subsequent part, the mission is in superior discussions with tier 1 launchpads — with bulletins on the horizon. The Bitcoin DeFi area is tight, and Atomiq DeFi determined to collaborate in strategic partnerships with initiatives together with SatoshiSync, Portal and OrdinalsBot, additional enriching the Bitcoin ecosystem.

Bitcoin-centric DeFi ecosystem fund

Along with powering AtomiqDeFi’s development, Mintlayer Ecosystem Fund gives an incubator, accelerator and grants packages for Bitcoin-centric DeFi initiatives. The standard grants vary from $50,000 to $200,000, though some bigger grants may be given to incubated initiatives like Atomiq DeFi. Mintlayer founder Enrico Rubboli remarked on their belief in Atomiq DeFi, stating:

“We’re extremely proud to have Atomiq DeFi as the primary mission incubated by the Mintlayer Ecosystem Fund, and belief that below Zaid Ismail’s steering, we’re set to revolutionize Bitcoin DeFi, providing true interoperability with Bitcoin via atomic swaps and providing a really decentralized option to change Bitcoin with any sort of asset issued on Mintlayer.”

The fund strategically helps initiatives that carry new and distinctive choices to the ecosystem. Guiding newly growing initiatives via incubation packages and serving to to develop and scale confirmed initiatives with its accelerator program, Mintlayer goals to empower the Bitcoin DeFi sector.

Carrying ahead Mintlayer’s future imaginative and prescient, AtomiqDeFi argues that whereas DApp builders largely favor Ethereum, it’s time for Bitcoin to take the DeFi crown. AtomiqDeFi plans to be listed on numerous crypto exchanges following the token technology occasion, and negotiations are ongoing.

With help from Mintlayer, AtomiqDeFi is paving a brand new path for Bitcoin within the DeFi area and in addition lays the groundwork for a extra interconnected and decentralized monetary ecosystem. New collaborations might unlock the untapped potential of the Bitcoin blockchain and form the way forward for DeFi primarily based on the unique cryptocurrency.

Disclaimer. Cointelegraph doesn’t endorse any content material or product on this web page. Whereas we purpose at offering you with all vital data that we might receive on this sponsored article, readers ought to do their very own analysis earlier than taking any actions associated to the corporate and carry full accountability for his or her choices, nor can this text be thought-about as funding recommendation.

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