jakiro
1. With the launch of Babylon and the opening of Lorenzo pledge, let’s talk about the recent development of the BTC ecosystem.
Since Ordi has made the BTC ecosystem popular, BTC has actually quickly compressed and taken the route ETH has taken – first to drive the chain assets (ERC20) – then to the expansion plan (Rollup) – and then to Staking/Restaking.But because there is no such decisive needle as ETHFoundation and V God to determine the direction, BTC is basically a situation where a hundred flowers are released at the same time.
The asset side became popular first, and then Brc20, Arc20, Src20, Orc20 and other XX20s were rushing out like crazy. Many people were happy last year that the BTC security model was expected to be solved (after 20 or 30 years, we experienced four more.The reward for halving the blocks for five times can be as small as negligible. There must be enough TX on the chain to pay the handling fee to miners). Last year, the handling fee was indeed more than the block reward if the inscription was issued crazy.You can see this picture. At most, the handling fee of 300 BTC per day is at most.
Look at August again… the BTC fee income is 0.00 per day. Rune was briefly popular in April and May, and then turned off the fire.
After completing ETH’s ICO in 2017, we will follow the expansion plan represented by Merlin. We will first use ETH’s EVM ready-made technology stack + a multi-signal side chain to run first (by the way, Polygon – it was called Matic at the time and did the same thing)
Then, the expansion plan is much more than the Rollup set by ETH, which is officially set by ETH.
I simply drew a picture, basically this is what (the assets on the chain are also included and considered a technical branch)
At present, Taproot Asset can only make money transfers. The most BTCNative (that is, starting from the UTXO feature) is definitely RGB (can the main network no longer be delayed in September?), RGB++&UTXOStack, andUnisat’s Fractal (speaks are very high lately)
In fact, there is a route missing in the picture, which is a contract virtual machine extension of layer 1.5, which means that it is undoubtedly ArchNetwork. The OP_NET I talked about recently is also considered, but Arch uses ZKVM, and OP_NET uses WASM
The expansion plan is because the technology stack is too messy and even more chaotic than assets, so it is hard to say who can come out in the end. We can only say that each has its own advantages and disadvantages, and leave it to time and the market.To put it in this direction, it may be impossible to completely falsify it in the end. After all, the current main narrative of BTC’s “electronic gold” is actually not used to expand. The expansion is more for the purpose of “on-chain assets” services.If the on-chain assets route does not start, expansion will naturally lose its meaning.
2. Finally, let’s talk about the third stage (Staking/Restaking)
This route is more Solid than the previous two routes, because it does not conflict with the electronic gold narrative at all, and is even a perfect supplement – releasing the liquidity of gold and turning gold into an interest-generating asset!
The most important project at this stage is undoubtedly Babylon, because BTC is not like Yield, which naturally has POS. Under the premise of Lido, EigenLayer’s Restaking narrative is more like a Booster to ETH itself, or icing on the cake.Babylon is a timely help for BTC. By Trustless, BTC will be restaking and Yield will be generated. BTC will no longer be a “gold” with interest-free assets.
The other two are worth mentioning on this route. Solv and DLC.Link, the former gives BTC interest + SolVBTC liquidity through Cefi+Defi (one of the Babylon entrances), and the latter is currently in a crisis of trust in WBTC.In the environment, use DLC technology to mint dlcBTC, “Trustless Bridge” BTC to participate in the Defi ecosystem on various chains such as ETH, Solana, etc., which is easy to understand and simply view it as a decentralized and secure version of WBTC.
Back to the topic, back to Babylon and Lorenzo, Babylon is undoubtedly targeting the EigenLayer niche, so there will naturally be asset entrances, that is, the LST/LRT niche is also extremely important. Eigenlayer has Etherfi, Renz0, Puffer, etc., and BabylonThere are also several companies competing for entry to Solv, Lombard and Lorenzo
The differentiation of each company is larger than that of several leading LRT projects on Eigen. For example, Solv has gained benefits in Cefi, in addition to Babylon, and also has BTC/ETH-related projects on Defi, including Ethena, Merlin, Arb and other BTC/ETH.Cooperation benefits with the second floor, etc.
Lombard has an advantage in capital and intra-circle resources. At the same time, the LBTC it issues is also the most secure one. It uses CubeSigner (a professional non-custodial key management platform) + Consortium (a industry leader nodeThe consortium chain node network formed) is the most Balanced solution I have seen in terms of security and flexibility.
Lorenzo directly integrates Pendle’s principal and interest separation function, including the liquid pledged token of stBTC (the same for each pledge item), and the liquid pledged token of YAT (the different for each pledge item),Lorenzo is also the only LST project on the market that provides users with YAT and points dual incentive system. The current total limit is 250BTC (to ensure user income), and there are still dozens of BTC capacity, which is expected to be full soon, first come first served.
Finally, compared with the two directions of asset issuance and expansion on the BTC chain, the interest generation/liquidity release of BTC is a more visible and tangible direction, especially the layout of asset entrances.This can also be seen.In the projects mentioned above, Renzo, Puffer, Babylon, Solv, and Lorenzo Binance have investments, so you know, you have to stare at this track and pay attention to it!
