Velar introduced the first Bitworld’s Traditional Swaps decentralized exchange (DEX) in beta to add further utility to the world’s first cryptocurrency.
For holders of BTC, the Bitcoin trading protocol seeks to increase Bitcoin liquidity and yield-generating potential.
On September 16, the new Velar Artha permanent swaps DEX became live on BOB (Build on Bitcoin), per a statement provided.
According to Velar CEO and co-founder Mithil Thakore, the milestone launch may allow the ecosystem to experience previously untapped Bitcoin BTC$57,877 liquidity.
The CEO said:
“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 one of the businesses developing Bitcoin-based decentralized finance (DeFi), or BTCFi. This new technological paradigm seeks to enable DeFi features on the first blockchain network in history.
In the next five years, Bitcoin might rule the DeFi market.
Even while Ethereum is still the well-known platform for DeFi and smart contracts, more businesses are starting to integrate DeFi features on the Bitcoin network.
Thakore predicted that Bitcoin would rule the DeFi scene in the next five years due to ongoing BTCFi innovation.
“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.”
The co-founder continued, “Bitc” might become the definitive platform for decentralized finance” if “TCFi keeps innovating.
More than 100 Bitcoin L2 chains are being constructed presently.
Layer Two (L2) Since the mainnet lacks intelligent contract functionality, networks like Stacks are crucial for adding more utility to Bitcoin.
Since more than 100 L2s are being created around the world blockchain network, BTCFi may witness a variety of new use cases, 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 forecast was made about two weeks after Zest Protocol, supported by Tim Draper and Binance Labs, introduced its new BTCz token, which allowed Bitcoin owners to use Babylon Protocol to earn a staking yield on their cryptocurrency.
