SINGAPORE, March 14, 2024 /PRNewswire/ — OKX Ventures, the investment arm of OKX, the world’s leading cryptocurrency exchange and Web3 technology company, is proud to announce its investment in DLC.Link, the first native Bitcoin cross-chain protocol that leverages Discreet Log Contracts (DLCs) to enable Bitcoin to be used in DeFi protocols while being held in self-custody wallets.
DLC.Link is a groundbreaking project that aims to bring the power and innovation of DeFi to the Bitcoin ecosystem without compromising on security, decentralization or user experience. DLC.Link partners with institutions (called “dlcBTC Merchants”) to mint dlcBTC, a decentralized wrapped Bitcoin. Unlike other forms of wrapped Bitcoin, dlcBTC does not require Bitcoin deposits to be held with a custodian or bridged to a separate blockchain.
To mint dlcBTC, Bitcoin depositors “self-wrap” by locking their collateral into a DLC which can only pay out to the original depositor. Thus, dlcBTC provides a “theft-proof” protocol, in that Bitcoin deposits cannot be lost through hacks, theft or fraud. Furthermore, since only the original depositor can retrieve funds, dlcBTC is more resistant to censorship than current forms of wrapped Bitcoin.
Unlike Bitcoin L2s or sidechains, which require additional modifications to Bitcoin, support for DLCs was added in Bitcoin’s Taproot upgrade. This means that DLCs can leverage the security, liquidity and network effects of Bitcoin, while bridging to DeFi protocols on Ethereum without requiring separate validator nodes. Instead, DLC.Link provides a network of DLC Attestors running Ethereum validators, provided by popular node operators such as OKX, HashKey Cloud, Republic, P2P, Dextrac and others.
Aki Balogh, co-founder of DLC.Link, said: “wBTC has reached Top 15 token status, despite its centralized custody model. In contrast, dlcBTC is the only wrapped Bitcoin that is minted from self-custody. DLCs, which were added to Bitcoin in 2021, enable a theft-proof wrapping mechanism without the need to introduce a bridge or L2 chain. dlcBTC will boost the adoption of Bitcoin in DeFi and has the potential to become a Top 10 token.”
Dora Yue, founder of OKX Ventures, said: “DLC.Link is a pioneering project aimed at bringing the power and innovation of DeFi to the Bitcoin ecosystem, without compromising security, decentralization, or user experience. We are pleased to support the vision and mission of DLC.Link. OKX Ventures believes that DLC.Link will unlock more value and potential within Bitcoin, and create a more open, inclusive, and decentralized financial system.”
To learn more about DLC.Link, click here.
For further information, please contact:
Media@okx.com
About OKX Ventures
OKX Ventures is the investment arm of leading crypto exchange and Web3 technology company OKX, with an initial capital commitment of USD 100 million. It focuses on exploring the best blockchain projects on a global scale, supporting cutting-edge blockchain technology innovation, promoting the healthy development of the global blockchain industry, and investing in long-term structural value.
Through its commitment to supporting entrepreneurs who contribute to the development of the blockchain industry, OKX Ventures helps build innovative companies and brings global resources and historical experience to blockchain projects.
Find out more about OKX Ventures here.
About DLC.Link
DLC.Link harnesses the power of Discreet Log Contracts (DLCs) to establish a trustless bridge between Bitcoin and Ethereum. This spring, DLC.Link will launch dlcBTC, enabling depositors to self-wrap their Bitcoin for DeFi on Ethereum while retaining full custody of their assets. This innovation transforms Bitcoin’s role in DeFi, empowering depositors to engage in trading, lending, and hedging while maintaining self-sovereignty.
For more details, visit www.dlc.link
SOURCE OKX Ventures
