Website

DLC Link

Last updated: Mar 25, 2024

DLC.Link is at the forefront of developing infrastructure that facilitates smart contract settlements on native Bitcoin, focusing initially on applications such as currency hedging and lending. DLC.Link is building infrastructure to enable smart contract settlement on native Bitcoin.

Funding Round: N/A

IMPORTANT: By investing in this business you agree to ourDisclaimer. All information including our rating, is provided merely for informational purposes. CryptoTotem does not provide investment advice.

Overview

Project industry	Blockchain Infrastructure
Product type	Protocol
Founded	United States
Whitepaper	Open

What is DLC Link

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.