Bitcoin DeFi Expands With Velar PerpDex Launch On Stacks
1min read Bitcoin DeFi has recently expanded its utility with the launch of Velar PerpDex on Stacks, introducing perpetual futures trading to Bitcoin’s decentralized finance ecosystem for the first time. This development is expected to drive further innovation on Stacks’ Layer 2 (L2) and contribute to the growth of the network’s total value locked (TVL).
Velar PerpDex, which has been in development for some time, offers a user experience similar to leading Ethereum Virtual Machine (EVM) or Solana decentralized exchanges (DEXs). However, it is uniquely built on Bitcoin, allowing users to bridge their BTC trustlessly to Stacks. This process involves custodying the original coins on the Bitcoin network and unlocking a tokenized counterpart on Stacks. Initially, users can go long or short on BTC using the BTC/USDh pair, with additional markets expected to be added soon. Liquidity providers (LPs) will also have opportunities to earn fees on Velar, and the platform features USDh, a high-yield stablecoin issued by Hermetica, offering an annual percentage yield (APY) of up to 25%.
Yield is a primary selling point for Bitcoin DeFi, as it allows users to earn returns on their BTC holdings rather than keeping them in cold storage. This proposition has gained traction as Bitcoin’s L2 ecosystem has grown and security concerns have diminished. Stacks, a prominent L2 in this ecosystem, has been operational for years and has seen a steady increase in user onboarding and protocol development. The network’s recent Nakamoto upgrade enhanced security and decentralization, enabling transactions to be mined and confirmed within seconds. This improvement supports applications like trading platforms that require high speed and transaction volume.
Stacks’ TVL received a boost with the release of sBTC, a tokenized version of BTC on L2 that maintains a trustless peg to the price of L1 BTC. This innovation allows BTC to be used on Stacks without introducing centralized control points or risking price deviation from native bitcoin. With Velar PerpDex now live, the range of BTC utilities has expanded, and the yield opportunities, thanks to Hermetica’s USDh, have also increased. This development is expected to further catalyze innovation and growth within the Bitcoin DeFi ecosystem. 
Ask Aime: What impact will the launch of Velar PerpDex have on the Bitcoin DeFi ecosystem?
