The BTC ecosystem is flourishing, and new opportunities in DeFi are emerging.

Bitcoin Ecosystem Analysis

Advantages Analysis:

1. Market Hotspot Track

Over the past month, Bitcoin's price has surged from $25,000 to $37,000, a gain of over 40%. This upward trend has attracted significant attention in the short term, leading to a substantial influx of capital into the BTC ecosystem from professional investment institutions, retail investors, and speculators.

2. Market Capital & New Participants

The continued rise in Bitcoin's core price has brought attention and discussion to BTC ecosystem projects, attracting substantial capital that not only supports the development of existing projects but also provides essential nourishment for incubating projects. Additionally, the surge in ecosystem tokens such as Ordinals and BRC20 has instilled market confidence, drawing in new participants. The growth in funds and players has created a healthy cycle within the entire BTC ecosystem, ensuring its sustainability.

3. Existing Protocol Upgrades & New Protocols

The BTC ecosystem has been activated by innovative protocols such as Ordinals and BRC20 at the beginning of the year. Subsequently, protocols like ORC20, Atomicals, Stacks, Lightning Network, RGB, Taproot, BRC100, BRC420, Rootstock, and BEVM have contributed to the ecosystem's development, indicating its vitality and active growth stage. The injection of multidimensional forces into the Bitcoin chain is expected to lead to the emergence of more new protocols and the smooth issuance of tokens, enhanced DeFi liquidity and trading pairs, the real operation of Gamefi to attract more players, a greater variety of NFTs, and continuous infrastructure improvements.

4. Low Investment, High Return Opportunities

The low entry barrier for investment in the BTC ecosystem presents significant opportunities for high returns. This advantage is particularly evident in the emergence of new protocols and gameplay, offering players the chance to experience the latest trends and participate in investment activities. For example, players who participated in minting SATS tokens have seen their prices increase by up to 10 times, with some reaching over 15 times. Compared to projects in established ecosystems, such high-yield opportunities are relatively rare. The BTC ecosystem is currently in a stage of new development, with a constant stream of new protocols and gameplay, bringing excitement and multiple opportunities to the crypto community.

Risk Analysis:

Inadequate Infrastructure in the Early Stage of Ecosystem Development, making hardware deployment and basic operations costly, with most transactions still requiring offline OTC trading.
Indirect Security Issues, as offline OTC trading poses risks of fraud.
Poor User Experience, as most new protocols require significant waiting times for orders, leading to prolonged transaction congestion.
Uncertainty about when the hype and market focus will diminish. A potential decline in BTC prices could impact the ecosystem and create a bubble, necessitating careful consideration.

Highlighted Project Sharing

1. ALEX

ALEX is an open-source Bitcoin DeFi platform based on the Stacks ecosystem, and is one of the most important protocols on Stacks. As of the drafting date, the TVL on Stacks has reached 18 million, with ALEX's TVL accounting for 14 million. ALEX offers products including Credit launchpad, DEX, order book, and futures contracts, functioning as the Uniswap of the BTC chain, allowing users to swap, stake, borrow, and provide liquidity in a fully decentralized manner.

As a DeFi platform, ALEX also provides non-liquidation risk borrowing, offering users a secure way to lock their assets in contracts to earn interest or perform other financial operations without worrying about market fluctuations.

With the development of the Stacks platform and Bitcoin technology, more projects will be built on Stacks, and ALEX's Launchpad service provides a starting point for these projects. This forward-looking feature greatly enhances the sustainability of ALEX's development.

ALEX has launched its governance token $ALEX, with a current market value of 36 million USD and a circulation of 600 million tokens, providing users with the opportunity to participate in the platform and potentially benefit from future appreciation. The project raised a total of 8.3 million USD through funding rounds in November 2021 and March 2023.

2. Arkadiko

Protocol Arkadiko is a decentralized liquidity protocol based on Stacks. The project's focus lies in the need for decentralized stablecoins in every ecosystem, and Arkadiko serves as the stablecoin project for the Bitcoin Stacks ecosystem.

Through Arkadiko, users can use their native Stacks token $STX as collateral to mint Arkadiko's stablecoin USDA, and the project also supports swapping and borrowing. USDA can be used within the Arkadiko protocol for farming to repay loans, with farming yields generated through participation in the Stacks consensus mechanism known as Proof of Transfer (POX).

3.Sovryn

Sovryn is the first non-custodial smart contract application for Bitcoin lending and margin trading on the Rootstock network. Unlike the traditional Ethereum DeFi model, Sovryn allows users to borrow, lend, and leverage Bitcoin's native assets without sacrificing key custody. Additionally, users have direct voting rights in the Bitocracy protocol governance system. Sovryn also introduces EVM-compatible Ethereum-style smart contracts for Bitcoin, a significant innovation as developers believe that Bitcoin, with its larger user base and liquidity, is the center of the cryptocurrency world and is used by major institutions.

Sovryn offers specific services to users:

-Lending pools: Users can earn interest by lending their tokens to borrowers and margin traders.

-Margin trading: Users can create long and short positions with leverage of up to 5x.

-Spot exchange: The platform acts as an automated market maker (AMM), allowing for instant trading between different tokens at low cost and low slippage.

-Fast BTC relay: Users can immediately utilize Bitcoin with smart contracts and other decentralized products using any BTC wallet.

The project has the token SOV, with a current market value of 11 million USD and a circulating supply of 37 million tokens. The project raised 2.1 million USD in 2020, three rounds of funding in 2021 totaling 2.5 million USD, 10 million USD, and 9 million USD, and 5.4 million USD in 2022, totaling 29 million USD in funding.

4.MoneyOnchain

MoneyOnChain is a decentralized, Bitcoin-backed stablecoin protocol built on RSK. With Bitcoin's support, the protocol consists of four tokens, providing several use cases for Bitcoin holders, including leveraged Bitcoin operations.

-The first token is Dollar on Chain (DOC), a stable token pegged to the US dollar. Users can quickly send and receive any amount of DOC.

-The second token is BitPRO (BPRO), designed specifically for Bitcoin holders to earn passive income from their tokens. BPRO holders have several sources of income, including a percentage of platform fees, interest rates, and a small leverage on the Bitcoin price. BPRO absorbs unwanted Bitcoin volatility from DOC and sells it to BTC2X.

-The third token is BTC2X, designed for traders who want to double their Bitcoin price. Traders pay interest for these long positions, with the interest going to BitPro. BitPro also earns a percentage of platform fees and receives subsidies in the form of MOC tokens.

-Money On Chain (MoC Token) is the fourth token, designed to manage a decentralized autonomous organization (DAO) and can also be used to pay platform fees at a lower rate than BTC. MoC holders will also be able to receive rewards for providing services to the platform. MoC token holders will vote on contract modifications and new features. At a basic level, the DAO decides whether to update the smart contract code.

5.BEVM

BEVM is an EVM-compatible BTC Layer2, with the core goal of expanding Bitcoin's smart contract capabilities, allowing BTC to break free from the constraints of the non-Turing complete Bitcoin blockchain and lack of support for smart contracts, and enabling BTC to build decentralized applications with BTC as the native GAS on the BEVM Layer2.

The design concept of BEVM is to directly use Bitcoin's native technology to achieve decentralized BTC Layer2 without changing the existing technical framework of Bitcoin. The specific method is the combination of Musig2 aggregated multi-signature technology and Bitcoin light nodes to achieve decentralized cross-chain to BTC Layer2, and because Layer2 is fully compatible with EVM, it can easily enable BTC to implement various decentralized applications.

As BEVM is an EVM-compatible Layer2, all decentralized applications such as DeFi, GameFi, SocialFi, and NFTFi that can be deployed on the ETH EVM can also be deployed on BEVM. The only difference is that ETH Layer2 uses ETH as GAS, while BTC Layer2 uses BTC as GAS. Each transaction on BTC Layer2 will be packaged into BTC Layer1 by a sequencer at a ratio of 10:1, allowing BTC Layer2 to share the security of BTC Layer1. In the long run, this BTC Layer2 solution aims to enhance scalability, reduce costs, and foster a more secure and decentralized financial ecosystem, which is of great significance for the long-term development of Bitcoin.

6.HOTFI

HOTFI is a liquidity solution built on the Ordinals protocol and EVM protocol for BRC20 standard tokens, introducing Launchpad functionality to drive the launch of high-quality projects and provide continuous development momentum for the DeFi ecosystem within Ordinals.

HOTFI offers the following features for Ordinals users:

-Decentralized peer-to-peer matching trading for BRC20 standard tokens;

-Real-time Swap functionality;

Allows users to provide liquidity through AMM and earn passive income;
Stake section, where users can deposit their BRC20 tokens and earn farming rewards;
Community support and open DAO governance, building the DeFi ecosystem together with users.

HOTFI's DeFi services almost cover the common needs of users. With more community participation and DAO governance mechanisms, as well as a focus on introducing high-quality projects in the future, HOTFI is progressively building strength for the Ordinals ecosystem. As the BTC ecosystem and BRC20 tokens continue to grow and develop, HOTFI is expected to become a significant part of the ecosystem.

7.Orders

Exchange Orders is the first DEX to run entirely on the Bitcoin network, with its order book running entirely on the Bitcoin network. Orders aims to witness a trustless order book DEX, liquidity pool, exchange DEX, and LaunchPad, fully leveraging the potential of Bitcoin Layer 1, supported by the Ordinals protocol, PSBT technology, Bitcoin script, and the revolutionary Nostr protocol.

Highlights of Orders:

Orders cleverly learns from blur's NFT gameplay, presenting a chain-based DEX system for currently complex and difficult-to-trade BRC20 tokens;
Combining liquidity mining, order book, and trading mechanisms (Ask&Bid);
Simple and user-friendly interface, similar to blur's gameplay, easy to use;
The project token RDEX token has practical utility value and excellent liquidity as a trading pair;
A team with a deep and professional background, with technical capabilities evident from the whitepaper.

Orders has already released a Beta version and is available for use, with real-world use cases and demand. The team's professional capabilities as reflected in the whitepaper also inspire confidence in the project's development. However, as the first DEX on the Bitcoin network, there are undoubtedly many mechanisms to be optimized in the future, and based on the token allocation mechanism, there are potential risks such as future dumping. It is recommended to consider investing in RDEX tokens after understanding and being interested in the project.

8.MultiBit

MultiBit is the first bidirectional bridge designed specifically for cross-network transfers between BRC20 and ERC20 tokens. Its most significant advantage lies in the liquidity of BRC20 tokens, breaking down barriers between different blockchain networks. This innovative design also enhances token accessibility, making it more convenient and flexible for users to transfer between different networks.

MultiBit simplifies the token transfer process between Bitcoin BRC20 and EVM networks. First, users transfer BRC20 tokens to a dedicated BRC20 address. Once confirmed, these tokens are ready to be minted on the EVM network. However, the unique feature of MultiBit is its bidirectional bridging capability, allowing seamless transfer back to Bitcoin from the EVM network.

Undoubtedly, MultiBit breaks down barriers for BRC20 and the outside world, greatly promoting the development of the BTC ecosystem, which is foreseeable and commendable. In addition, MultiBit emphasizes the promotion of liquidity and accessibility for BRC and ERC tokens in a secure and user-friendly manner, providing users with a trusted and secure environment. The realization and assurance of this point will give MultiBit more room for development, as security and convenience are essential qualities for a cross-chain project to go further and remain evergreen.

9.Bitlight Labs (Cosminmart)

Bitlight Labs develops infrastructure based on the RGB protocol and deploys multiple applications on the Lightning Network, including Bitswap and the Bitlight wallet. The establishment of this ecosystem provides users with more trading and interaction methods, achieving faster and maximum transactions.

Its features include:

A smart contract system capable of managing rich states;
Use of Peter Todd's client verification example: data is held by the "national owner" (such as asset owner) rather than by public cognition;
Graph operations on Bitcoin transactions, which can come from Lightning channels on the Bitcoin blockchain;
Scripts can be written in the Turing-complete Simplicity script language verified by Blockstream.

Lightning Labs' open-source, secure, and scalable Lightning system enables users to send and receive funds more efficiently than ever before. Lightning Labs also offers a range of verifiable, non-custodial financial services based on the Lightning Network.

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veDAO has an industry-leading AI language model composed of on-chain analysis and sentiment indicators, providing proactive data support to users. It combines intelligent, fast, secure, and real-time monitoring AI trading functions. As of now, the platform has been heavily used by over 40,000 users, with connections to 22,000+ Web3 vertical industry Twitter KOLs. It has also formed a veDAO expert committee with 180+ professional institutions, a project library of over 10,000 projects, and 240+ scouts continuously adding Web3 projects with veDAO.

veDAO is committed to continuously upgrading at a bi-weekly update pace, determined to build a bridge from Web2 to Web3, becoming the preferred platform for Web2 and Web3 users to search for projects, find hotspots, observe trends, and engage in primary investment and secondary trading.

Website: http://www.vedao.com/

Twitter: https://twitter.com/vedao_official

Facebook: bit.ly/3jmSJwN

Telegram: t.me/veDAO_zh

Discord: https://discord.gg/NEmEyrWfjV

Investment carries risks, and projects are for reference only. Please bear the risks on your own.

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