Velar And Bitlayer Collaborate To Launch The World’s First BTC-Based Perpetual Decentralized Exchange

Defi has been around but for the first time there is something called Bitcoin DeFi. The cryptocurrency landscape has witnessed a significant shift over the past year, with Bitcoin (BTC) leading the charge. After starting 2023 with a valuation of around $25,000, the world's largest cryptocurrency has risen more than 165% to its current price of $66,000 as of mid-May 2024. This notable price rise has been accompanied by a rapid expansion of Bitcoin's utility, particularly in finance. Decentralized (DeFi).

Velar's mission to unlock the potential of DeFi

At the forefront of this DeFi revolution is Velar, a leading innovator in this space. Vilar 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 unparalleled security and transaction finality.

Villar expanded beyond the stacks

One of Velar's latest achievements in this endeavor is its partnership with Bitlayer, a layer 2 network built on top of BitVM. This collaboration led to the creation of Velar Artha, the world's first permanent decentralized exchange (PerpDex) built on the Bitcoin network.

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The launch of Velar Artha represents an important step for Velar, as it marks the company's first partnership outside of the Stacks ecosystem. This expansion demonstrates Velar's commitment to providing innovative DeFi solutions to a wide range of strategic partners, strengthening its position as a leading force in the DeFi landscape.

Bitlayer: Bridging the gap between Bitcoin and DeFi

Bitlayer, a partner in this pioneering collaboration, is the first Layer 2 Bitcoin security solution built using 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 build DeFi applications that leverage the powerful tools synonymous with Solidity, the native programming language for Ethereum smart contracts, while still benefiting from the unparalleled 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 opens up 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 focus of the Velar-Bitlayer collaboration is the launch of Velar Artha, the world's first permanent decentralized exchange (PerpDex) built on the Bitcoin network. This groundbreaking development represents an important milestone for the entire Bitcoin ecosystem, as it provides traders the ability to engage in perpetual contract trading directly on the Bitcoin blockchain.

Perpetual contracts: a game changer for DeFi

Perpetual contracts, which provide leveraged exposure to trade various crypto assets without an expiration date, are a popular DeFi product. However, until now, these tools have only been available on non-Bitcoin blockchains. The creation of Velar Artha changes this, opening up many permanent trading possibilities for investors while taking advantage of the unique advantages of the Bitcoin network.

Harnessing idle capital and security in Bitcoin

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

The wise partnership behind Velar Artha

Collaboration between Villar and Petair layer Driven by a shared vision of Bitcoin's potential as the foundation for a new financial infrastructure. Velar CEO Mithil Thakuri and Bitlayer Co-Founder Charlie Yixuan Ho expressed their excitement to work together to realize this vision.

Alignment with Bitcoin's transformative potential

Thakur stressed the importance of partnering with someone who truly understands and shares Villar's vision for the future of Bitcoin, saying: “Charlie Hu and I share a common vision of Bitcoin's potential as the foundation of a new financial infrastructure, and I couldn't be more excited to work with someone who truly understands and shares this vision.”

He echoed this sentiment, believing that Velar's integration on Bitlayer could 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 perpetual on-chain 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 opened up 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 live metaverse experiences on the Bitcoin network, expanding its utility.

Realizing the full potential of Bitcoin

As the cryptocurrency sector continues to mature, various innovations surrounding the Bitcoin network are helping to lay the foundation for the associated ecosystem. Fifteen years after its inception, Bitcoin appears to finally be 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.

Implications of Velar Artha on 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 open new opportunities for asset trading and expand the capabilities of DeFi running on Bitcoin rails.

Freeing up billions in idle capital

Furthermore, the integration of Velar Artha into Bitlayer's operational framework aims to free up billions of dollars of idle capital within the Bitcoin ecosystem, allowing BTC holders to fully participate in DeFi activities without incurring any custodial risks. This development represents an important step forward in realizing Bitcoin's potential as the basis for a new financial infrastructure.

Promote innovation and collaboration

The collaboration between Velar and Bitlayer is also a testament to the growing momentum and innovation in the challenge space. As the cryptocurrency sector continues to evolve, we will likely see more strategic partnerships and innovative solutions emerge, increasing the adoption and integration of Bitcoin-based DeFi applications.

Conclusion: The dawn of a new era for decentralized finance

The launch of Velar Artha, the world's first permanent decentralized exchange on the Bitcoin network, marks a pivotal moment in the ongoing evolution of DeFi. This pioneering collaboration between Velar and Bitlayer has the potential to open up new opportunities for traders, unleash large 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 cryptocurrency industry continues to mature, 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 the foundational layer for a new era of financial innovation, cementing its position as a transformative force in the ever-evolving world of cryptocurrencies.

common questions

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

Velar Artha is the world's first permanent decentralized exchange (PerpDex) built on the Bitcoin network. It allows traders to engage in perpetual contract trading directly on the Bitcoin blockchain, opening up new opportunities for asset trading and expanding the capabilities of DeFi running on Bitcoin rails.

What is Bitlayer's unique approach to DeFi?

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

How does Velar Artha aim to harness idle capital and the security of Bitcoin?

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

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

This collaboration is based on a shared vision of Bitcoin's potential as the basis for a new financial infrastructure. It aims to open up asymmetric opportunities within Bitcoin's rapidly expanding DeFi ecosystem and pave the way for the future of finance on the Bitcoin network.

Disclaimer: The information in this article is for informational purposes only. It should not be considered financial or investment advice. The reader should conduct his or her own research before making any financial decisions based on the information provided above. Chain News Network is not responsible for any market losses

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