TerpLayer: Reshaping Liquidity on Bitcoin Layer 1.5

As institutional investors battle for dominance in the Bitcoin ETF market, DeFi traders are exploring new ways to take advantage of these opportunities. However, they need access to high liquidity to fully benefit. Despite Bitcoin’s prominence, its ecosystem still lags behind other blockchains such as Solana, BNB, and Ethereum in terms of on-chain activity. TerpLayer’s new protocol aims to bridge the gap in scalability solutions for the Bitcoin chain.

Current Market Landscape

Bitcoin Exchange Traded Funds (ETFs) have become key to integrating digital assets into mainstream finance. These ETFs provide a regulated on-ramp for institutional investors, reduce perceived risk, and attract new capital to the market. This inflow of funds is changing Bitcoin’s market dynamics, enhancing liquidity and stabilizing trading volumes.

However, Bitcoin’s price volatility presents challenges. Recent rapid upward trends have been followed by sharp pullbacks that have been impacted by economic and regulatory factors, highlighting the need for strong liquidity solutions. High liquidity can help mitigate these fluctuations by allowing large-scale transactions with minimal impact on the market.

BTC Liquidity Market Analysis

From the current data, there is a clear contrast between centralized exchanges (CEX) and decentralized exchanges (DEX):

· Ethereum:CEX trading volume is about $20.85 billion (about 70%), while DEX trading volume is $8.93 billion (about 30%).

· Bitcoin:CEX trading volume dominates with $30.27 billion (about 98.8%), while DEX trading volume lags behind with only $359.4 million (about 1.2%).

This imbalance shows that Bitcoin's liquidity in DeFi has not been fully utilized. A key issue is that Bitcoin holders are reluctant to move their assets from their private keys, which limits their participation in DeFi and inhibits the growth of liquidity.

Daily trading volume of ETH BTC on CEX DEX

Solving the Decentralized Market Liquidity Gap

Despite its massive market cap, Bitcoin’s potential in decentralized trading has yet to be fully realized, largely due to the lack of an effective liquidity protocol. This gap has limited Bitcoin’s trading volume and participation in the DeFi space.

Introducing TerpLayer’s Bitcoin Decentralized Liquidity Protocol

TerpLayer’s solution directly addresses this problem. By leveraging its unique TerpLayer Atomic Swap (TAS) technology and TPUSD stablecoin, TerpLayer significantly enhances Bitcoin’s liquidity in decentralized markets. TAS enables seamless exchange of Bitcoin and USDT on EVM-compatible chains, while TPUSD provides a stable and secure medium of exchange within the Bitcoin network. These innovations breathe new life into Bitcoin’s decentralized trading potential, bringing it closer to the level of liquidity found in the Ethereum DeFi ecosystem.

TerpLayer - Bitcoin Decentralized Liquidity Protocol

TerpLayer's Core Technology

At the core of TerpLayer is its TerpLayer Atomic Swap (TAS) technology, which enables seamless exchange between Bitcoin and USDT on EVM-compatible chains. This cross-chain solution enhances liquidity by facilitating secure and efficient cross-network transactions without compromising speed or security.

The TPUSD stablecoin is pegged to USDT and designed for the Bitcoin network, complementing TAS by providing stable and secure transactions. This stablecoin supports consistent trading activity, thereby enhancing market stability.

TerpLayer also introduced World State Tree technology, which provides real-time tracking of Bitcoin addresses, improving data access and transparency across the ecosystem.

TAS: TerpLayer Atomic Swap

AMM on Bitcoin Layer-1.5: A Breakthrough

TerpLayer implements decentralized trading of automated market makers (AMMs) on Bitcoin Layer 1.5. TerpLayer uses liquidity oracles and TAS technology to enable decentralized Bitcoin trading without complex cross-chain operations or prior authorization. This innovation simplifies trading and represents a major advancement in Bitcoin DeFi functionality.

AMM on BTC Layer-1.5

Terpolly Genesis Inscription: A Glimpse into the Future

Terpolly is the first set of inscriptions in the TerpLayer ecosystem, symbolizing ownership and providing holders with trading dividend rights. These inscriptions not only generate passive income, but also demonstrate the potential of TerpLayer's future development, paving the way for new financial instruments and investment opportunities.

Terpolly Ordinal NFT Series

Enhancing Bitcoin's decentralized liquidity step by step

Bitcoin liquidity in DeFi is both challenging and full of opportunities. As the ecosystem develops, especially thanks to technologies such as atomic swaps, TPUSD stablecoins, and AMMs implemented on Bitcoin Layer 1.5, solving the problem of insufficient liquidity is critical to achieving wider applications and efficient transactions. TerpLayer is at the forefront of enhancing Bitcoin liquidity, laying the foundation for future developments in the DeFi space.

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