FluidTokens Brings Permissionless Lending to BTC with Arch
FluidTokens, a leading UTXO-based lending and staking DeFi platform on Cardano, is now expanding its Bitcoin base layer capabilities by integrating with Arch.
To date, the experience for Bitcoin-native lending has been very cumbersome.
Previously, FluidTokens had wanted to build directly on Bitcoin, but faced significant limitations while relying on the primitive OP_CODES available with Bitcoin's native Script programming language.
- Lenders had to sign a transaction, then wait for a borrower to sign one, before both then needed to sign again.
- This two-signing process meant both the borrower and lender had to be online at the same time.
- Plus, if the borrower/lender doesn't sign in a certain time period, the UTXO transaction may already be "spent," leading to a failed transaction.
FluidTokens is now able to create a single-click experience for lenders and borrowers directly on Bitcoin, using Arch's bridgeless execution platform to streamline user experience.
- Lenders will be able to deposit Bitcoin or BTC-based assets (including Runes, BRC-20 tokens, or even stablecoins like Hermetica's USDh) in a liquidity pool.
- Borrowers can then borrow directly without having to wait on the lender, who will have already set all the conditions upfront in a smart contract-like Arch "program."
This model marks a significant evolution from the current market, which relies on centralized lending platforms or Bitcoin Layer 2 options.
"Our focus is on bringing the one-click experience to Bitcoin without losing decentralization," says Raul Rosa, the Chief Technology Officer for FluidTokens.
“Arch is the missing piece to unlock instant liquidity on Bitcoin Layer 1: Fluid provides the logic, and Arch is the place where this logic lives.”
FluidTokens has been a leader in revolutionizing permissionless DeFi on UTXO-based chains like Cardano and Bitcoin, and were responsible for introducing the first-ever permissionless script on Bitcoin.
As self-proclaimed UTXO maximalists, the FluidTokens team are a great fit for building on Arch, which built its custom VM and Decentralized Network from scratch to maximize its compatibility with UTXO-based assets and the entire Bitcoin ecosystem.
Arch enhances the liquidity and programmability of Bitcoin by making it possible for developers to send smart contract instructions directly through UTXOs, without ever having to take on bridge risk.
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About Arch Network
Arch Network is a bridgeless execution platform designed to enhance Bitcoin’s capabilities by enabling fast, secure, and fully verifiable smart contract-like programs. Its bridgeless architecture facilitates role-dependent trust assumptions, including fully trustless use cases on the Bitcoin base layer. With its specialized VM and Decentralized Verifier Network, Arch is helping unlock the full liquidity and programmability of Bitcoin.
About FluidTokens
FluidTokens is a leading lending and borrowing platform on Cardano, building on top of Bitcoin since March 2024. The first objective behind the platform is to help users unlock the liquidity inside their assets in a permissionless way.