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BTC Connect Roundup: 3rd Edition

BitVMX, Nubit's Execution Layer for Meta-protocols, Babylon Testnet-4, and more

About the author

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 ( 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.


BitVMX from Rootstocks Whitepaper

Researchers from Rootstock Labs and Fairgate Labs have announced the whitepaper of BitVMX, an open-source project aimed at advancing computations on Bitcoin.

BitVMX is a new design for a virtual CPU that can verify arbitrary programs on the Bitcoin blockchain. It improves on the original BitVM concept by introducing an advanced challenge-response game protocol with a simplified computational model for verification by using hash chains of program traces instead of Merkle trees. BitVMX aims to enable sophisticated computations on the Bitcoin blockchain without requiring significant changes to its existing infrastructure. It has potential applications in creating decentralized, trustless bridges for Bitcoin sidechains and enabling the optimistic verification of zero-knowledge proofs.

Link to the whitepaper:

Nubit's Stateless and Trustless Execution Layer for Meta-protocols

The Bitcoin ecosystem has evolved over the past couple of years with advancements like Layer-2 solutions and the integration of inscriptions and ordinal protocols. However, Bitcoin's Turing-incomplete script necessitates the use of off-chain Bitcoin indexers, introducing challenges to data integrity and availability.

To address these, a new modular indexer architecture, Indecure, is proposed by the team at Nubit. It uses polynomial commitments to streamline verification processes and robust data attestation procedures to ensure reliability against malicious alterations. Preliminary evaluations show Indecure's effectiveness in reducing computation time and data block size while maintaining high integrity in state transitions.

TAP introduced the Privileges Authorities feature

This new feature on TAP Protocol generates inscription texts to establish privilege authorities. It can be used by projects to implement whitelists, launchpads, and reward systems for games. By issuing tokens in this manner, projects can distribute tokens to their target users without concerns about front-running and sniping. The Royal is the first collection that utilized Privileges authorities.

BTC L2's Landscape by

In this report, Caliber presents an overview of the current Layer 2 solutions for Bitcoin. This includes basic BTC scaling methods, the challenges, and the technical architecture of several prominent L2 solutions available in the market.

Security of Stroom Network

Stroom Network aims to redefine DeFi security standards by integrating Bitcoin, Ethereum, and the Lightning Network to ensure secure and trustless operations. It uses a K-of-N multisig model for enhanced transparency and security.

Within the Stroom system, all LN nodes must adhere to the Stroom protocol, which prevents them from accessing the Bitcoin in their channels and requires system validation for any channel state changes. Nodes must also report any revoked channel states to the validating nodes' databases. This allows the Stroom-enabled hub to securely link to the federated Lightning Network Node, managed by the validating nodes. Any non-compliant LN node can be excluded from the network, maintaining system integrity and security.

Stroom's consensus mechanism uses the FROST algorithm, allowing validating nodes to independently verify operations. Key activities such as stroomBTC minting and redemption involve multi-party signatures stored in local databases. These databases synchronize through a Practical Byzantine Fault Tolerance-style consensus mechanism, ensuring censorship resistance. To bridge Bitcoin and Ethereum, each validating node incorporates full nodes for both blockchains, functioning as a DAO-managed LN Watchtower, enhancing network security and integrity.

Stroom also employs a DAO structure for distributed governance, allowing community involvement in decision-making. Future plans include regular audits by third-party security firms and dynamic bug bounty initiatives.


Bitcoin Asia 2024 Alphas

Luna Labs discusses key events and alphas in the Bitcoin Asia 2024 conference, including the rapid growth of the Ordinal event, the potential of Runes, the impact of the Merlin Chain and the announcement Liquidium token. The thread also highlights the success of the Nuro movement and the strong Chinese support for Book of Blob.

Babylon Announces Testnet - 4

In this Babylon Testnet-4 , BTC stake will only involve BTC Signet test network without a Babylon PoS test chain. They can engage in a full range of activities including staking, unbonding, withdrawing but there are no slashing, no PoS reward, no voting.

For more details to participate in this testnet, you can follow this:

pStake Finance introduces BTC liquid staking

pStake Finance is introducing BTC liquid staking in partnership with Babylon. This will enable Bitcoin holders to earn yields on their BTC. The collaboration leverages Babylon's innovative BTC staking protocol, which uses Bitcoin's proof-of-work security to enhance proof-of-stake chains. pStake Finance will open for BTC deposits in the coming week.

Surf Protocol partnered with Mage Finance

This partnership between Surf Protocol and Mage Finance enables users to stake SolvBTC on Surf and receive Surf LP Tokens (SolvBTC). For greater returns, you can stake your LP Tokens on @Mage_Finance.

Both Surf Protocol and Mage Finance are executing points programs to distribute their tokens. You can learn more about these programs here and here.

Liquidium supports more new collection

Liquidium is a money market built on top of the Bitcoin blockchain. It has achieved over 1300 BTC in trading volume to date. They announced the expansion of their offering to support: Runemilio, Retordinal, Goldmine Tools, and more.

For the complete list of new collections, you can read it here:

ALEX protocol exploited

Leading DeFi protocol on Stacks ALEX had been through an exploit last week.

The exploiter gained administrative control over one of the vaults connected to the ALEX liquidity pool by compromising private keys through a phishing attack. A total of 13M $STX was stolen. The ALEX team continues to work with various exchanges to recover the funds. Additionally, they plan to use ALEX reserves, held by the ALEX Lab Foundation, to establish a treasury grant program to support the community affected by this attack.

Nubit Private Alpha Testnet is now open

After the successful of Pre-Alpha testnet, users can now join the Nubit Alpha Testnet. In this testnet includes running Full/Light Nodes, sending transactions to the testnet, and querying transactions on our chain explorer. For more details, you can follow by this guide:

BounceBit Announce 2024 RoadMap

BounceBit, the first Bitcoin restaking chain supported by Binance, announced its 2024 Roadmap, including BounceBit Portal acts as the operating system, BounceBit Chain as the settlement and executional layer, and BounceClub as the Lego set to build CeDeFi. Its direction is to focus on CeDeFi lego and make CeDeFi products on BounceBit chain.


Zest Protocol

Zest Protocol has raised $3.5M in a seed round led by Draper Associates.

Zest Protocol is a money market leveraging the security of Stacks Bitcoin L2. By upgrading to Nakamoto, it enables sBTC, a 1:1 Bitcoin-backed asset that offers developers a programmable version of Bitcoin. Zest Protocol is written in Clarity on the Stacks L2, and is based on the design of Aave v3. Zest Protocol is also running a points program on the Stacks network, and will expand to the BTC native chain when the Nakamoto update is complete.

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