Velar 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.
Launch and features
The new Velar Artha perpetual swaps DEX launched on BOB (Build on Bitcoin) on Sept. 16. This milestone launch could unlock newfound Bitcoin liquidity for the ecosystem. According to Velar co-founder and CEO Mithil Thakore, 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.
Bitcoin's potential to dominate DeFi
While Ethereum remains the established home of DeFi and smart contracts, increasingly more firms are building DeFi capabilities on the Bitcoin network. According to Thakore, continued BTCFi innovation could see Bitcoin dominate the DeFi landscape in the next five years. 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.
Development of second-layer networks for BTC
Layer-2 (L2) networks like Stacks are essential for creating more utility around Bitcoin since the mainnet has no smart contract functionalities. According to 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 launch of Velar Artha perpetual swaps decentralized exchange could be a pivotal step in the growth of the Bitcoin ecosystem, bringing new liquidity opportunities and further DeFi development on the first cryptocurrency.
Comments