Velar launches Bitcoin DEX to boost liquidity and yield options

Velar has introduced a new decentralised exchange (DEX) specifically for Bitcoin (CRYPTO:BTC) perpetual swaps, aiming to enhance the utility and yield-generating potential for Bitcoin holders.

The Velar Artha DEX, launched in beta on September 16 on the Build on Bitcoin (BOB) platform, is designed to offer more liquidity options for Bitcoin users, both retail and institutional.

Mithil Thakore, co-founder and CEO of Velar, highlighted the significance of this launch by stating, "For the first time, retail and institutional BTC holders can earn a yield on native Bitcoin through providing liquidity or trading.

This brings DeFi-like functionality directly to Bitcoin without the need for wrapping or bridging, potentially increasing Bitcoin's utility and value proposition."

This development marks a step forward in expanding decentralised finance (DeFi) capabilities directly on the Bitcoin network, a field now being referred to as BTCFi.

Velar is one of the companies at the forefront of building DeFi solutions specifically for Bitcoin, which traditionally lacks the smart contract functionalities available on networks like Ethereum (CRYPTO:ETH).

According to Thakore, BTCFi could change the landscape of decentralised finance in the coming years, attracting a significant influx of users and capital due to Bitcoin’s core attributes of decentralisation and sound monetary properties.

"Ethereum's early lead in DeFi is likely to fade as users and developers recognize Bitcoin's superior monetary properties and true decentralization," Thakore added.

The rise of Layer-2 solutions, like those built on the Stacks network, is expected to enhance Bitcoin's DeFi capabilities further.

Over 100 Layer-2 networks are currently in development to enable more complex functions and smart contracts on the Bitcoin mainnet.

Thakore noted, "With over 100 Bitcoin Layer 2 solutions currently in development, we're witnessing a major shift in the crypto landscape."

At the time of reporting, the Bitcoin (BTC) price was $58,099.06.