Read the DeFi platform Optimex specially designed for BTC in one article | CryptoSeed

Author: Scof, ChainCatcher

Edited by: TB, ChainCatcher

DeFi platform built specifically for Bitcoin

Optimex is a DeFi platform specially built for Bitcoin. It allows users to directly conduct transactions, lending, margin trading and other operations on the Bitcoin network without bridging Bitcoin to other chains and without having to hand over assets to third parties to custody.

Unlike traditional centralized exchanges and DEX based on AMM (automatic market maker) mechanism, Optimex adopts the RFQ (requested quote) model to match transactions between users and professional market makers, ensuring that each transaction price is transparent, without slippage, and is not affected by miner arbitrage. The entire system is completely unmanaged, and users have their own Bitcoin private key at any time. The security of assets is guaranteed by the protocol mechanism and does not rely on trust.

Cracking the structural dilemma of Bitcoin DeFi ?

Although Bitcoin is the largest crypto asset with market value, its on-chain financial applications are extremely limited. The reason is that the limitations of the native functions of the Bitcoin network, such as the lack of Turing's complete smart contracts and weak scripting systems, make it difficult to carry complex DeFi operations. This makes Bitcoin difficult to effectively utilize although it has huge liquidity and has been in a state of "lying still" for a long time.

At present, if users want to use Bitcoin on the chain to participate in lending, trading, income and other operations, they often need to bridge their cross-chain to other blockchains that support smart contracts. For example, the popular Bitcoin DeFi practice on the market is to package BTC into ERC-20 tokens such as WBTC, and then trade on Ethereum.

This approach, while implementing functionality, sacrifices decentralization and asset transparency. This approach is not only cumbersome, but also involves a series of issues such as security risks, regulatory compliance, and trust in custody. Once a loophole occurs in the bridge or a problem occurs with the intermediary, the user's assets may be directly damaged.

Optimex designed a fully native, bridging-free DeFi solution for this structural puzzle. It does not rely on any intermediate layer or encapsulated assets, but rather realizes the possibility of transactions and borrowing on the Bitcoin chain. Through intelligently designed multi-signature vaults, cross-chain coordination mechanism and off-chain matching logic, Optimex allows Bitcoin to operate as flexibly as it is on Ethereum without losing its original security and decentralized features.

This model not only unleashes the liquidity potential of Bitcoin, but also provides long-term holders with more means to add asset value and manage assets. As the Bitcoin network is gradually upgraded, Optimex has also laid a foundation for sustainable development for its native DeFi ecosystem.

Optimex 's technical architecture and core mechanism

The core of Optimex's ability to implement native Bitcoin DeFi lies in its unique architectural design. First, it introduces a native Bitcoin "Vault" mechanism, built on the Bitcoin scripting language, where users deposit BTC into the vault when initiating transactions, which is jointly controlled by the user and the protocol. The vault adopts a 2-of-2 multi-signature and relative time lock design. Without completing the transaction, users can unilaterally retrieve funds after the specified time to ensure that the assets are always controllable.

Another key module is the "Settlement Commission", a decentralized network composed of multiple MPC (multi-party computing) nodes, responsible for transaction confirmation and fund settlement. These nodes use tECDSA threshold signature technology to keep the system running normally even in the event of node replacement or individual node failure. Each node needs to be mortgaged, and once the violation is violated, it will be confiscated to ensure economic security and honest implementation of the agreement.

At the communication level, Optimex also built an exclusive EVM Layer2 network as the information coordination center for the entire system. It records all transaction intentions, handles market makers' quotations, manages safe deposits and implements penalties, but ordinary users do not need to directly contact this layer, and the entire process is insensitive to the user.

In addition, Optimex has designed a flexible matching architecture, with "Solver" as a trading intermediary, requesting quotes from multiple market makers and automatically finding the best execution path. Market makers do not need to lock liquidity on the chain, but participate on demand, which not only improves capital efficiency, but also ensures transaction speed and experience.

Project background and development status

Optimex was founded by Loi Luu, a graduate of the National University of Singapore and the founder of Kyber Network and Caliber. Before creating Kyber, Loi developed Oyente, the first open source smart contract security analysis tool on Ethereum.

In addition, according to the official website information, Optimex has launched BTC's Swap and packaging/unpacking functions, and the lending and margin trading modules are still under development.

(This article only introduces early projects and is not used as investment advice.)