This is a very good question.

This is a very good question. In fact, I have had many discussions with the #CKB team about #BTCFi. It’s not just CKB, many BTC layer 2 networks or BTC ecosystems have talked to me about how to integrate BTCFi with the #RGB++ protocol layer. After all, RGB++ is not only the asset issuance layer of the BTC network, but also the smart Contract Layer and UTXO operation layer of the BTC network. In plain language, through the RGB++ protocol, native assets can be issued on BTC, and these assets can participate in various BTCFi gameplay without the risk of centralized bridges. This is an advantage that other BTC protocols currently do not have.

For BTCFi, the essence of providing Liquidity to BTC is off-chain operation, which is currently not feasible to handle on-chain, after all, it is necessary to audit the assets through off-chain to map them to on-chain, so for the chain itself, one important aspect is the issuance of assets and the other is whether asset exchange can be easily carried out.

According to the BTCFi I designed, there are three on-chain native assets, including stBTC, stMSTR, and stIBIT, the latter two of which are mapping-type assets, while the first stBTC can actually be replaced by the native asset of #BTC. This is the largest application of native assets at the chain level, because the #BTCFi I made may only be a small part of the larger BTC ecosystem. When SAB121 is approved, BTC can be used as collateral for loans in mainstream banks in the United States, allowing for various plays based on BTC collateral assets. Obviously, RGB++ is one of the choices for this type of asset issuance. From on-chain data, since the release of RGB++ this year, the volume of asset issuance has increased 5.7 times compared to the previous period.

When it comes to gameplay, for example, BANK-BTC derived from the bank’s collateralized notes is actually a “Cross-Chain Interaction Application” of BTC. This kind of BTC can be equivalent to native BTC on-chain stake, and even better, assets of BANK-BTC can be used as collateral for borrowing native BTC, which can generate Interest. This approach is a real profit-making solution for native #Bitcoiin. And most importantly, the assets of BTCFi are not achieved solely through price swaps, but require the method of “transaction intent” to ensure that each St asset has the lowest capital anchoring to avoid being unanchored. 01928374656574839201

In addition to collateralized lending, Stable Coin is also an issuance solution. Stable Coin based on bank assets can be issued through BANK-BTC. The value of Stable Coin is equal to the native BTC staked in the bank. This method is actually helping to issue Stable Coin through BTC, and the underlying assets of Stable Coin are verified by the bank. These Stable Coin assets will be the most important Stable Coin in the blockchain world in the future. Currently, RGB++ has already launched USDI, a Stable Coin supported by short-term US Treasury bonds, and Stable++, a protocol for staking BTC and issuing Stable Coin.

In addition, RGB++'s protocol has the ability to issuance assets on multiple chains simultaneously, which may not be useful for me at the moment, but may be very useful for other BTCFi. For BTC, the most important thing for a protocol is not Cross-Chain Interaction assets, but how to build a comprehensive asset-based application layer support around BTC. In the system I designed that combines trap BTC with the traditional banking system, supporting various RGB++ assets with CKB Lighting Network Fiber undoubtedly further expands the ceiling of the BTCFi track in the face of high concurrency and security and privacy needs.

The second half of the BTC ecosystem is bound to have a native protocol. From the process of contention among numerous parties to unified integration, the one that is safer and more user-friendly will prevail. From the perspective of BTCFi, CKB’s RGB++ is very competitive in terms of technical advantages, development efficiency, infrastructure completeness, and team resource investment. It is worth looking forward to.