[WHITEPAPER]
More than 99% of Bitcoin remains idle, disconnected from the rapidly growing DeFi ecosystem worth $231 billion.
This isn't due to a lack of interest. It's due to a lack of trust.
Every existing solution requires trusting committees, operators, or custodians.
The magic happens through BitVM3 technology.
Either party must provide a valid zero-knowledge proof to withdraw Bitcoin. Invalid proofs trigger secret revelation through garbled circuits. The secret will open a hash lock, which prevents the fraudulent withdrawal.
No trusted third parties required.
The cost improvement is dramatic.
Our experiments on BitVM2 and BitVM3 show that on-chain costs in the unhappy path can be reduced from $15,700 (BitVM2) to $93.
That translates into a 170x reduction in the collateral needed for each deposit.
In the happy path, only 3 Bitcoin transactions are needed, costing less than $1 each.
Do you get it yet?
This enable major DeFi applications:
• Lending: Native BTC as collateral without wrapped tokens
• Stablecoins: BTC-backed USD tokens with trustless liquidation
• Perpetuals: Bitcoin margin trading
among others. All while maintaining self-custody.
Security comparison matters so here's one:
Traditional approaches require trusting covenant committees, bridge operators, or signer committees.
Trustless vaults eliminate all external trust dependencies. Only the vault participants control redemption.
This represents Bitcoin's evolution from static store of value to programmable foundation for DeFi.
And we're not even changing Bitcoin's protocol.
We're just unleashing its existing capabilities through cryptography.
Sixteen years after Satoshi introduced trustless digital money, we're finally integrating that original seed with the smart contract economy.
In other words, this is huge.
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