Introduction
This document serves to highlight the current Bitcoin ecosystem and introduce market participants to the opportunities that can be addressed by various features and functionalities on UniRouter.
Last updated
This document serves to highlight the current Bitcoin ecosystem and introduce market participants to the opportunities that can be addressed by various features and functionalities on UniRouter.
Last updated
With the Bitcoin ecosystem experiencing exponential growth in 2023, market focus has initially revolved around asset issuance protocols and scaling solutions.
UXTO, which is a key indicator of activity on the Bitcoin network, has risen steeply since the inception of the Ordinals protocol. This suggests rising user numbers and overall a growing ecosystem.
Several other protocols have emerged attempting to offer simple and secure methods of asset issuance on the Bitcoin network; this has resulted in increased liquidity across the Bitcoin ecosystem landscape.
Beyond technological innovation, the Bitcoin ecosystem relies on the involvement of various market players including individual investors, investment institutions, exchanges and miners.
As the Bitcoin ecosystem expands, so too must protocols and platforms built within it. Offering novel solutions that mirror those native to other popular networks such as Ethereum will result in a thriving, innovative and liquid ecosystem that utilizes the full power of Bitcoin’s one-of-a-kind infrastructure and design.
There are various pain-points holding back the continued development of the Bitcoin ecosystem. These bottlenecks must be addressed if the development of new technologies is to keep up with the increasing demand for expansion of the Bitcoin ecosystem.
Inscriptions assets on both BRC20 and ARC20 lack liquidity, as current marketplaces are unable to offer the depth and trading experience required for the Bitcoin inscription ecosystem to grow.
As impressive as the growth of the Bitcoin ecosystem has been, there is still a long way to go in order to create a bustling landscape of protocols across inscription assets, DeFi and the such.
Decentralized Applications (dApps) are the gateway for new users inside young ecosystems, such as that of Bitcoin.
With more dApps comes more expansion, collaboration and the opportunity for rapidly increasing liquidity, as protocols often incentivise early users.
EVM chains comparably have a much larger ecosystem, with no slow in growth expected; not only is it vital to keep up the pace in terms of native development and innovation on the Bitcoin network, but access to EVM ecosystems (and liquidity) is also essential for fast and sustainable growth of the Bitcoin ecosystem.
With exploration across the Bitcoin landscape still in early days, developers and project teams are yet to explore more than a handful of areas of innovation.
This means that only a handful of use cases exist for the protocols and applications built within the Bitcoin ecosystem currently (largely BRC-20, ARC-20 and PIPE serve as leading protocols, with minimal use cases).
For the Bitcoin ecosystem to be taken seriously and ultimately attract more investment and platform participants, new use cases need to be explored.
Liquid staking, as exemplified by Lido on Ethereum, addresses the core issue of asset illiquidity, a common drawback in traditional staking methods and represents a key area/use case that is still lacking within the Bitcoin ecosystem.
Currently, there are no reliable and solid solutions for Bitcoin holders. In order for the Bitcoin ecosystem to continue its rapid growth, participants expect to be presented with the same opportunities that are existent on competing blockchain networks (such as Ethereum); this will play a key role in migrating liquidity across networks.
UniRouter introduces a suite of novel solutions that aim to massively expand opportunities for Bitcoin ecosystem participants and protocols:
UniRouter presents a novel liquid staking solution, specifically designed to enhance the utilities and liquidity of staked Bitcoin assets across Bitcoin networks including Bitcoin L2s.
With a focus on security and reliability, UniRouter’s LSD solution becomes the first of its kind on the Bitcoin network, allowing users to earn staking rewards on their Bitcoin assets while maintaining liquidity, and enabling their participation in the broader Bitcoin DeFi ecosystem without sacrificing potential yield.
Our strategy to collaborate with leading protocols already built on the Bitcoin network will result in a win for all involved - Budding projects built within the ecosystem have new functionalities to attract users and liquidity, users have somewhere to stake their Bitcoin assets, and UniRouter expands as the leading LSD solution within the Bitcoin ecosystem.
UniRouter’s introduction of liquid staking into future client networks operating within the Bitcoin ecosystem addresses a crucial missing piece of the puzzle, which is liquidity.
Several protocols built on the Bitcoin network boast secure and robust staking mechanisms, but they lack flexibility of liquid capital, which presents a considerable bottleneck to their overall growth and that of the ecosystem as a whole.
UniRouter solves this puzzle by transforming locked Bitcoins into liquid derivative tokens, enhancing the target protocol’s ecosystem's appeal. This integration is pivotal, as it empowers Bitcoin holders to engage more actively in the burgeoning Bitcoin DeFi sector, leveraging their assets while continuing to accrue staking rewards.
The unique positioning of UniRouter to function as a liquid staking layer for leading protocols built on the Bitcoin Network lies at its core functionality as a cross-chain platform; we place considerable focus on Layer 1 technology to maximize flexibility, security and decentralization.
Users/Stakers:
These participants engage in the staking process, depositing bitcoins and receiving liquid tokens, reflecting their staked value in a flexible form.
UniRouter Validators:
While securing the UniRouter RouterChain itself, these entities orchestrate the staking process, initiating and managing transactions.
Node Operators:
Appointed by UniRouter validators, they handle the technical infrastructure and operational aspects of staking validators. They maintain the infrastructure necessary for the staking process to secure external PoS chains, ensuring that the network is running smoothly and securely.
Staking Validators:
These entities are responsible for actually validating transactions and blocks of external PoS chains. They play a key role in maintaining external blockchains' integrity by ensuring that all transactions and blocks adhere to the protocol.
The workflow for stakers involves depositing bitcoins into UniRouter's signature-aggregated wallet, receiving derivative tokens, and then utilizing these tokens within the broader DeFi ecosystem.
UniRouter's validators are tasked with securely managing stakers' deposits within a signature-aggregated wallet. This wallet's security is reinforced by UniRouter's consensus mechanism and is further supported by a predetermined limit on the total volume of staked bitcoins.
These validators will initiate the process such as sending bitcoins to self-custody wallets with required unlocking conditions. Similar to Lido, staking revenues generated through securing PoS chains will accrue to the value of staking-derivative tokens and losses will be proportionally distributed across all stakers, ensuring a shared risk and mitigation strategy. We'll share more details on UniRouter's designs for managing node operators and staking validators in future documentation.
The UniRouter bridge closes the gap between the Bitcoin ecosystem and Ethereum Virtual Machine (EVM) chains, specifically focusing on Bitcoin inscription assets such as Atomicals and Ordinals.
By offering a secure and reliable cross-chain bridge solution, connecting the Bitcoin Inscription Assets to EVM ecosystems, bridging Atomicals and Ordinals to EVM will be the first stage of development and aims to increase liquidity and user numbers within the Bitcoin ecosystem.
By introducing these assets into the EVM ecosystem, UniRouter opens the door to a more familiar and comprehensive trading environment. Once these assets are integrated into the EVM ecosystem, they can be utilized in a variety of ways, from staking ERC20 Atomicals to earn UniRouter tokens, to providing liquidity in ATOM-USDT pools on platforms like Uniswap.
Besides cross-chain asset transfers, data communications will also be enabled in the near future according to the development roadmap.
Central to UniRouter's operation is RouterChain, a high-performance blockchain infrastructure providing smooth asset management and inter-chain communication. RouterChain is designed to facilitate an open, secure and programmable platform for cross-chain applications.
Additionally, RouterChain not only takes advantage of future client’s Bitcoin staking protocols for enhanced security, but serves as a liquid staking layer itself, offering immediate liquidity options for stakers.
This dual role of the UniRouter Chain, as both a secure conduit for asset and message management and as a facilitator for fluid staking processes, marks its pivotal future role in the broader Bitcoin ecosystem.
UniRouter - The Novel LSD Platform for Bitcoin.
UniRouter is elevating into a pioneering Liquid Staking Platform beyond a BTC-EVM bridge, specifically designed to enhance the utilities and liquidity of staked Bitcoin assets across Bitcoin networks including Bitcoin L2s. Our platform is dedicated to unlocking new opportunities for Bitcoin assets by enabling the seamless integration and utilization in decentralized finance (DeFi) applications.
With a focus on security and reliability, UniRouter is introducing an innovative liquid staking solution, which allows users to earn staking rewards on their Bitcoin assets while maintaining liquidity, thus enabling their participation in the broader DeFi ecosystem without sacrificing potential yield.
At the heart of UniRouter is the RouterChain, a high-performance blockchain infrastructure designed to facilitate an open, secure and programmable platform for cross-chain applications. This positions UniRouter not just as a bridge but as a foundational layer for building a Liquid Staking platform that leverages the intrinsic value of Bitcoin.
A Hub for Cross-chain Solutions, Bridging Bitcoin and EVM.
UniRouter is redefining the blockchain landscape by offering a groundbreaking and secure cross-chain solution. Our mission is to seamlessly bridge the gap between the Bitcoin ecosystem and the Ethereum Virtual Machine (EVM) chains, specifically focusing on Bitcoin inscription assets like Atomicals and Ordinals. This integration not only provides these assets with unprecedented access to the EVM ecosystem but also significantly enhances their liquidity by connecting them to a vast, multi-million user base.
Our approach goes beyond merely improving liquidity. UniRouter is set to transform the trading experience for Bitcoin inscription asset holders. By bringing these assets into the EVM ecosystem, we're not just opening the door to a more familiar and comprehensive trading environment; we're also inviting a global audience to engage with these assets. This transition enables Western players and the Ethereum community to participate, thus diversifying and enriching the market.
In addition, UniRouter elevates the utility of Bitcoin inscription assets. Once these assets are integrated into the EVM ecosystem, they can be utilized in a variety of ways, from staking ERC20 Atomicals to earn UniRouter tokens, to providing liquidity in ATOM-USDT pools on platforms like Uniswap. This functionality is not just an enhancement; it's a complete transformation, offering rewards such as LP fees and staking rewards.
While Atomicals and Ordinals are our initial focus, this is just the beginning. Our vision encompasses a broader range of Bitcoin inscription assets, each integrated in a progressively more decentralized and secure manner. This expansion aligns with our long-term goal of facilitating not just asset transfer, but also data communication across various blockchain ecosystems.
UniRouter is on a path to become a pivotal element in the multi-chain era, with our relay chain evolving into a central hub for all blockchain-based assets. We are committed to achieving the highest level of interoperability and becoming the go-to platform for asset and data fluidity in the blockchain world.
In essence, UniRouter is not just a bridge; it's a catalyst for unlocking the full potential of Bitcoin inscription assets, making them more accessible, usable, and valuable in the global blockchain ecosystem.
