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About the author
Particle Network (https://particle.network) is at the forefront of Web3 innovation with its Modular L1 powering Chain Abstraction. After successfully integrating Wallet Abstraction into 900 dApps, serving 17 million users, Particle Network is unifying the Web3 experience through its Cosmos SDK Layer-1. This empowers Universal Accounts, Universal Liquidity, and a Universal Gas Token across diverse ecosystems, such as BTC, SVM, IBC, and EVM.
Vamient Capital (https://vamient.xyz) is a quant fund specializing on trading on-chain with strategies deployed across multiple chains. As a market maker, Vamient specializes in making for order books, JIT liquidity for AMMs and can work with different hybrids in between, running liquidations and keeper bots for lending and collateralized protocols. Vamient looks to be a strong partner with new ecosystems to leverage on our niche in HFT and will be interested in contributing to lower spread, higher price stability and higher trading volume.
RESEARCHES & CONCEPTS
OP_CAT (BIP420) and Schnorr Signatures to do Magical Things with Bitcoin
Rijndael from Taproot Wizards presented about OP_CAT (BIP420) and Scroll Signatures. His talk included a detailed explanation of how to build covenants with OP_CAT and how it functions in practice.
Expanding on this, Rijndael elaborates on how we can use it to create vaults and a more generalized state machine, leading to CatVM. Finally, he mentioned other potential protocol upgrades aside from OP_CAT that could enhance Bitcoin's capabilities.
"The Definitive Guide To Bitcoin Smart Contracts" from Lorenzo Protocol
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The article from Lorenzo Protocol provides comprehensive coverage on the history of smart contracts, Bitcoin's scripting language, and ongoing efforts to enhance Bitcoin's computational capabilities. These include both base layer improvements such as Taproot, and second-layer developments.
The article further contemplates the future of Bitcoin's smart contract capabilities with advancements like covenants, drivechain, and additional developments on the Lightning network, such as Taproot assets.
BTC++ ATX, Consensus and the Great Script Restoration
Rearden's detailed thoughts after his involvement in the bitcoin++ conference in Austin. The future of Bitcoin's script was discussed at a conference, with a focus on the Great Script Restoration.
The Restoration aims to re-enable opcodes removed by Satoshi in 2010 due to potential DOS vectors. The proposal includes a cost-based model to limit validation costs and the introduction of new opcodes to improve transaction detail access.
There's also a proposal for a more flexible sighash system, variable length whole numbers, and the addition of CHECKSIGFROMSTACK. The risks of not improving Bitcoin's script are considered greater than the risks of changing it, as improvements can reduce the risks posed by current protocols built on existing script.
The Future of Bitcoin #2: Tokens from Binance Research
Binance Research continues their The Future of Bitcoin series with a detailed coverage about the Runes protocol.
The Runes Protocol, created by the builder behind Ordinals, Casey Rodarmor, offers a more efficient way to have fungible tokens on Bitcoin using the UTXO model. Compared with BRC20s, Runes are more efficient at using blockspace and likely more compatible with Bitcoin protocols.
Since their launch, Runes have significantly impacted Bitcoin's fees and transaction count. Future developments include internal airdrop mechanics and potential Bitcoin soft fork proposals.
Bob's Risks Assessment from BitcoinLayers
@build_on_bob is an optimistic rollup on Ethereum that supports #Bitcoin-centric applications. It is built on the OP Stack, and has plans to derive more security from Bitcoin in upcoming releases.
Bitcoin Layers continues their series of assessment on different protocols and second layers on Bitcoin with their risk assessments of BOB.
According to the assessment, BOB is an Ethereum rollup serving as an application layer for Bitcoin, with plans to derive more security from Bitcoin miners and full nodes over time. It uses two BTC synthetics, tBTC and wBTC, and users trust a variety of consensus participants for BTC custody and withdrawals. The state data is stored on the Ethereum blockchain, and block production is managed by a centralized operator.
BOB is developing Optimine, a mechanism for Bitcoin miners to merge-mine the BOB sequencer, and researching BitVM for an improved bridge program. Users pay fees in ETH, but can choose to pay with a separate token. BOB is also developing fraud proofs and a Bitcoin light client, and uses an EVM-compatible virtual machine. Its main use case is to provide Ethereum users access to Bitcoin applications.
NEWS & LAUNCHES
Bitcoin Asia Conference in HK
The highly anticipated Bitcoin Asia conference has finally started on 9-10 of May, with bloat of events and announcements happening around it.
We will have more detailed coverage of the conference on the next edition of BTC Connect Recap.
bitSmiley's Alphanet launch, and live on Particle Network's The People's Launchpad
Explore the cutting-edge features of our groundbreaking protocol now deployed on @BitlayerLabs network.
Start minting stablecoins while earning your exclusive bitPoints now!
The smart contract to mint…
Get ready for the much-anticipated debut of our Alphanet on @BitlayerLabs set to launch on May 1st, 2024.
May 1st will mark a significant step forward in our journey to transform BTCfi ecosystem.
Here's a sneak peek at what's in store for our Alphanet launch:…
@bitsmiley_labs is a BTC-Native stablecoin protocol, reinventing the Bitcoin DeFi ecosystem through stablecoin, lending, and derivatives infrastructure.
…
bitSmiley's Alphanet officially went live on bitsmiley.io on the 1st of May on Bitlayer. In addition, they introduced the pre-season of their points system, bitPoint, which started on May 1, 2024, and concluded on May 11, 2024. During this time, users could earn points by minting bitUSD on Bitlayer and providing liquidity for specified trading pairs on bitCow (such as bitUSD-USDT/bitUSD-WBTC). At the end of the pre-season, 1% of the total bitSmiley token supply will be distributed among users.
bitSmiley token $BIT is also live on The People's Launchpad by Particle Network. To participate in this launch, one needs to log in to the Launchpad with a Bitcoin or EVM wallet or social accounts, enter a referral code, and create a Universal Account on the Testnet.
Accumulate Power on the Launchpad to increase your allocation of $BIT. Activities that earn Power include staking M-bitDisc-Black, holding bitUSD, performing swaps on the bitCOW DEX, staking community assets, and referring active users. The period for accumulating Power is from 4 - 9 May, with token distribution occurring after $BIT’s Token Generation Event.
More details on $BIT's launch on The People's Launchpad can be found at: https://t.co/P28evigmri
BounceBit mainnet coming on 13th May
BounceBit has announced their highly awaited mainnet launch to be on 13th May. On the 12th, all LCTs(Liquid Custody Tokens) will be distributed to all early access user's wallet addresses autmatically, with BounceBit covering the gas fees.
It was also stated that the profits from Premium Yield Generation accumulated before May 13 can be claimed during mainnet launch, with approximately 8 million worth of profits being distributed. Claims can be made on either the BNB Smart Chain or Ethereum through the BounceBit portal.
Arch Network's seed round announcement
Announcing the closing of our seed round led by @multicoincap, hear what they have to say about us:
"Arch Network's emergence is a direct…
Arch Network, has closed 7m a seed round led by Multicoin Capital.
Instead of going through the second layer route, Arch Network aims to provide a platform for programmability on Bitcoin's native base layer through dedicated ArchVM and Decentralized Verifier Network, bringing advancements from other blockchains back to Bitcoin.
Introducing usdH by Hermetica
The first Bitcoin-backed, yield-bearing synthetic dollar.
Backed by #Bitcoin - not banks Earn up to 25% yield Native to Bitcoin L1 and L2sJoin the revolution now
Hermetica has introduced their synthetic dollar $USDh, which integrates directly into Bitcoin L1 via Runes as well as the L2s and promised a staggering 25% yield. Hermetica is backed by delta-neutral position between native Bitcoin spot combined with short BTC position on centralized exchanges, with the yield generated from the funding fees.
Demex Integration with Portal Finance
@demexchange, a decentralized exchange (DEX) and cross-chain platform built on Cosmos announces its integration with #Portal DeFi to Enable Cross-Chain Swaps All In-App. The partnership will simplify cross-chain trading of BTC native assets and enhance liquidity across…
thrilled to share our partnership with Portal for effortless cross-chain trading of $BTC native assets on Demex
with this collaboration, users can atomic swap their $BTC into Demex and trade perps easily, boosting liquidity across the…
Perpetual swap dex Demex has integrated with Portal Finance to improve their trading's user experience. With the Portal integration, Demex's users can now atomic swap their BTC directly onto Demex's own Cosmos chain and start to trade perps immediately.
Sovryn Dex 2.0 live on Bob
Live features:
• Swaps
• AMM LPs with Spice and Rune points + trading fees
• SOV staking on BOB
Borrowing, lending, margin trading and more to follow.
DEX 2.0 is the swiftest and most cost-effective dex on the market!
Leading Bitcoin DeFi protocol Sovryn has announced the expansion of their dex 2.0 on Bob.
The protocol will originally support swaps, LPs for AMM and staking of their native token $SOV, with more features such as lending and margin trading to come.
Apro Oracle supports DeFi on Merlin
APRO Oracle 
@MerlinLayer2 #APRO_Oracle proudly supports: @bitsmiley_labs, @izumi_Finance, @MerlinSwap, @surf_protocol, @Ascendant_fun, @Mage_Finance and more!
From ensuring data accuracy to enhancing security, our #oracle solutions are designed to empower every…
Leading oracle solution on the Bitcoin ecosystem APRO has announced their move onto the Merlin ecosystem and supporting most of the major DeFi protocols over there such as bitSmiley, MerlinSwap and Surf Protocol.
NEW PROJECTS SPOTLIGHT
Pell Network
Pell Network is a restaking protocol that enhances Bitcoin security and economics. It addresses the trust and security gap in BTC Layer 2 networks and expands yield potential through a decentralized trust marketplace. The network integrates advanced technology for upper-layer applications, secures critical infrastructure, and boosts Bitcoin Layer-2 networks. It operates within the Bitcoin ecosystem through its core components and supports a range of Actively Validated Services (AVS), fostering innovative blockchain research.
Ducat
Ducat Protocol, the first Bitcoin L1-native stablecoin on Runes, has been announced by the team earlier this month. It uses a proprietary meta-protocol, Ordinals Inscriptions, Runes tokens, and the Taproot upgrade to convert BTC addresses into stablecoin vaults. The stablecoin, UNIT, will be 150% BTC-collateralised at issuance and manage its peg programmatically.
Ducat aims to unlock $1 trillion of BTC for on-chain leverage, mitigate liquidity fragmentation across Bitcoin L2s, and create more DeFi use-cases for Bitcoin.
Disclaimer: this piece is purely informational and does not reflect endorsement or support of the projects mentioned. Please do your own research.
