Many people think that the BTC layer2 ecosystem, which has been popular for more than a year, has receded, but it has not. If we only look at it from the perspective of asset issuance, it does feel like dancing in a bubble. But if we look at it from the perspective of the value of landing applications, it is quite different. Recently, @utxostack released a set of DLSP (decentralized liquidity pledge protocol) solutions. Various features point to its potential to accelerate the landing of the native lightning network? Come, let me tell you my observations:
1) UTXO Stack, as its name suggests, has always been an ambitious strategic trump card of @NervosNetwork:
On the one hand, CKB should be "branded" in the UTXO framework of BTC layer2 to expand into a large ecosystem, provide a modular toolkit, so that developers can deploy UTXO BTC layer2 with one click, and the ultimate vision is to gain the right to speak in the competition with EVM BTC layer2, which many people know.
On the other hand, many people overlook the reason that the core features of CKB's innovative RGB++ asset issuance protocol and Fiber Network's enhanced lightning network should be moved from the "backend" of the behind-the-scenes technology infra to the "frontend" by accelerating the application of the lightning network, so that the market can more intuitively feel the technical innovation significance of RGB++ and Fiber Lightning Network.
2) The innovation of RGB++ is that it allows users to issue various assets on BTC L1, and then Leap to the programmable BTC smart contract layer 2 environment built by CKB, and find the application landing value in it. This was undoubtedly a "dimensionality reduction attack" on the RGB protocol, which was originally obsessed with the original ecology of BTC.
RGB++ not only verified the feasibility of the RGB client verification protocol, but also used the original wallet, chain and other infrastructure of the CKB chain to let everyone see the actual use cases of RGB after its implementation. To some extent, RGB++ is a "replacement" for the slow progress of RGB implementation;
Fiber Network is CKB's implementation solution around the Lightning Network. Through modular expansion technology, it can support multi-asset transmission (ecological assets other than BTC) and cross-domain atomic payment (interoperable with the original Lightning Network atoms). At the same time, it will accelerate the deployment of physical nodes in the Lightning Network to provide a faster, low-cost, multi-asset, high-privacy secure payment network.
Objectively speaking, the RGB++ protocol may be affected by the narrative silence of assets such as inscriptions, but the acceleration of the Lightning Network payment vision that Fiber Network is trying to do will not become obsolete;
3) Based on the above background, it is not difficult to understand the content of UTXO Stack. In short: UTXO Stack is based on the RGB++ asset issuance protocol Fiber Network, and has built an enhanced protocol focusing on the "payment" scenario. In addition to introducing a stablecoin solution for the Lightning Network, I think the main function is DLSP (Decentralized Liquidity Staking Protocol): 1. Zero-cost node channel, Node nodes can prepay funds from the DLSP liquidity layer to help users open channels and lower the entry threshold for users; 2. Automated liquidity management, using the liquidity management model of the AMM model to reduce the management costs of the Node operator; 3. Liquidity pledge derivative features, which can incorporate diverse financial gameplay such as Staking and Restaking, and issue liquidity tokens such as LnBTC, LnUSD, and LnCKB, so that users can earn income without sacrificing liquidity; For example, to operate and maintain a large-scale Channel, a large amount of funds are usually required to be deposited in advance, which will not only lock liquidity, but also be a considerable cost pressure. With the help of DLSP's financial derivative platform, nodes can directly borrow from the DLSP platform without pre-depositing a large amount of funds. BTC, and by charging transaction fees to pay for borrowing costs, will directly accelerate the emergence of lightning network node operators, solving the fundamental problem of the slow development of traditional lightning networks.
In addition, this is another solution that brings native non-custodial returns to BTCFi application scenarios in addition to @babylonlabs_io and @GOATRollup.
The construction of this DLSP layer is like a brand new "Eigenlayer" growing up in the Bitcoin lightning network system.
When the first goal of accelerating the landing of lightning network scenarios is achieved, the stablecoin circulation support, decentralized exchange node solutions, wallets (JoyID), P2P payment SDK, hybrid lightning networks and other infrastructures it provides will also be applied to the lightning network ecosystem.
It is equivalent to building a native extension layer support for the Lightning Network. As for what level the Lightning Network application market can be pushed to, and how many supporting innovative gameplays based on the Lightning Network will emerge, let's wait and see its subsequent development. (The recent large-scale airdrop incentive plan of UTXO Stack for the Lightning Network is worth paying attention to.)
That's it.
In general, although the name of UTXO Stack is very technically abstract, the supporting infrastructure it has built for the Lightning Network and the process route for accelerating the landing of the Lightning Network ecosystem are already very clear.
Of course, its market valuation expectations after TGE will also be "positively correlated" with the progress of the Lightning Network. Whether the BTC layer2 ecology of the UTXO framework can be redefined is still unknown, but the large ecology of the Lightning Network payment scenario channel seems to be in control?
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