Decentralized Savings For Everybody
Multisig Derivatives Trading -> Liquid, Decentralized Synthetic Dollars
We Bring Derivatives and Trade Channel Functionality To OP_Return Tokens for Bitcoin-based Protocols
Bitcoin is too slow and expensive to host DeFi, right? Wrong! Use a multisig channel. Unlike Lightning, these 2-of-2 addresses hold token balances that can be pulled by their owner, and balances can be transferred to new channels for trading or payments, without routing.
TradeLayer supports issued tokens with whitelists and native synthetic tokens, these can all trade against the UTXO currency of the chain (BTC, LTC, DOGE). Oracle derivatives can be created using any token as collateral. Native derivatives support the decentralized synthetic dollars and hedging markets for Fees and Difficulty.
How it works
An OP_Return message is embedded into a confirmed BTC, LTC or DOGE transaction.
TradeLayer’s downloads are alt. clients for the Bitcoin, Litecoin and Doge blockchains, they are full validating nodes that parse the OP_Return transactions.
A graph-based settlement algorithm sorts tokens to derivatives traders every hour.
Interest Formulas make swaps pay counterparties based on market premium, which pay native synthetic tokens.
What is the protocol about?
Extending Proof of Work Blockchains
TradeLayer brings financial expressiveness to Bitcoin and its forks. Transactions use OP_Return outputs, which can support secured loans, pledging collateral and trading derivatives. We believe Proof of Work is ideal for security, censorship-resistance and incentivizing renewable energy.
Regulated bank-deposit backed coins and security tokens are also viable in TradeLayer with modular whitelists restricting their movement. By trading BTC we create on-chain data that is useful for native settlement. Native contracts will include a Liquidity Reward for traders to farm through algorithmic arbitrage and speculation.
Layer 2 Comes With The Keys
TradeLayer provides a vector of Layer development for Bitcoin that can complement Lightning and other vectors. Most transactions don’t need to be published, they can be cached, deferred, and eventually batch settled in 1 transaction after many trades.
Multisig Trade Channels make bilateral trade execution fast. You can co-locate and trade on microsecond latency with C++ logic. There’s no Gas, signing a trade is fast and free. Fees go near 0. Scaling? Yes.
Alice spends her LTC to the Reference Address controlled by Bob, who has deposited a USD token to the multisig and co-signs on the trade. The Change Address recycles the LTC Alice doesn’t spend. The OP_Return defines the trade agreement.
Hedged Currency Units
Many DeFi protocols support synthetic tokens, often these are created on a secured loan model where you must post 2-5x the value of the synths you want to mind.
If you post 1 BTC worth of TOTAL, the metacoin on TradeLayer for Bitcoin, and you short 1 BTC worth of TOTAL/BTC Native Perpetual Swaps, you mint 1 sBTC.
sBTC is collateral for the native BTC/USD Perpetual Swaps which mint USDB.
Token + -1x Token/BTC Swap = Synthetic BTC
Synthetic BTC + -1x BTC/USD Swap = Synthetic USD