Muneeb seems to think so, and he’s the founder of Stacks, the smart contracts for Bitcoin.

Bitcoin will become a productive asset. Tweet thread

/ Bitcoin is sovereign money. It’s the most decentralized and secure store of value. However, most of the infrastructure to use Bitcoin is currently centralized. This includes centralized exchanges, centralized lending platforms, and centralized marketplaces.

2/ Smart contracts on Ethereum and others have shown the power of decentralized infrastructure for trading, lending, and marketplaces. Bringing these capabilities to the Bitcoin ecosystem goes hand in hand with the decentralized ethos of the Bitcoin community.

3/ The trillion-dollar market cap of Bitcoin, along with its durability and security, makes Bitcoin DeFi an enormous market opportunity. Projects like Lightning, Stacks, RSK, etc., are enabling various parts of this new Bitcoin economy.

4/ Native Bitcoin swaps recently went live on Stacks. Anyone can send a pure BTC transaction to swap to another asset in a trustless manner. For example, instead of trading BTC/USDC on a centralized exchange, you can do such a swap natively using a pure Bitcoin transaction.

5/ After native Bitcoin swaps, wrapped Bitcoin on Stacks is another significant development. Wrapped BTC is fully programmable in smart contracts, and you can do BTC/xBTC native swaps. See the @WrappedFi announcement.

6/ Wrapped BTC is one option on a spectrum of possibilities of BTC derivatives on Stacks. You can have collateralized minting of BTC derivatives instead of custodial approaches.  Further, trustless pegs can optimize for even more decentralization.

7/ Decentralized trading, lending, and marketplaces coming to Bitcoin are among the most significant developments in the BTC ecosystem. Bitcoin DeFi is relatively small and early but is growing quickly. Programmable xBTC is a major step.

P.S: More details on the xBTC launch by Wrapped are here:

https://medium.com/wrapped/wrapped-bitcoin-is-coming-to-hiro-developer-tools-and-stacks-ecosystem-this-fall-9198f391bc37

BullionVault

0 Comments

Leave a Reply