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Use Cases

BeL2 technology opens up a world of possibilities for Bitcoin integration with decentralized finance (DeFi) and other blockchain applications. This section explores some of the key use cases and demonstrates how BeL2 is already being put into practice.

Bitcoin Collateralized Loans​

One of the most exciting applications of BeL2 is the ability to use Bitcoin as collateral for loans without moving it off to a single point of failure, like BlockFi or Celcius.

Overview of the Loan MVP​

BeL2's peer 2 peer loan demo showcases a real estate mortgage-like model for Bitcoin-backed loans:

  • Use Bitcoin as collateral to borrow stablecoins (e.g., USDC)
  • Fixed interest rates determined by the market
  • Repayment on maturity with no liquidation before the due date
  • If borrowers default, lenders receive additional Bitcoin

StarBTC showcases the potential of BeL2 technology in terms of Bitcoin-backed lending. Developed during the ETHGlobal hackathon, StarBTC is the first and only native Bitcoin lending protocol built on Cairo.

  • Uses BTC as collateral for lending, remaining non-custodial and non-liquidatable
  • Leverages BeL2 and ZeroSync technologies for secure and efficient operations
  • Enables other chains to tap into Bitcoin as the most trustworthy asset on the Bitcoin mainnet
  • Demonstrates the practical application of BeL2 in creating DeFi solutions for Bitcoin

StarBTC serves as an excellent example of how BeL2 technology can bridge the gap between Bitcoin's security and the programmability of smart contract platforms, opening up new possibilities in the DeFi space.

Diagrams​

Loan Logics

Borrowing flow​

Repayment flow​

This system allows Bitcoin holders to access liquidity without selling their BTC or trusting centralized platforms. It combines the security of Bitcoin with the flexibility of DeFi.

Bitcoin Staking​

BeL2 introduces the concept of native Bitcoin staking, allowing Bitcoin holders to earn rewards without giving up custody of their BTC.

  1. Users stake their Bitcoin directly from their own wallets
  2. Staking is verified using zero-knowledge proofs
  3. Stakers can earn rewards for supporting the BeL2 network
  4. Bitcoin remains on the main Bitcoin network, ensuring maximum security

Benefits​

  • Earn passive income with Bitcoin
  • Contribute to network security and decentralization
  • Maintain full control and ownership of your Bitcoin

Decentralized Exchange (DEX) Integration​

note

This app is deprecated and discontinued

BeL2 enables trustless swaps between Bitcoin and tokens on EVM-compatible chains, bringing Bitcoin into the world of decentralized exchanges.

Swap Demo​

The BeL2 swap demo illustrates how users can exchange EVM tokens for Bitcoin (and vice versa) without intermediaries.

swap.bel2.org

  • Trustless swaps between BTC and ERC20 tokens
  • Uses BeL2 ZKP services to verify Bitcoin transactions
  • Automated proof submission for user convenience

This demo showcases how BeL2 can bring Bitcoin's liquidity to decentralized exchanges, enhancing the DeFi ecosystem's overall liquidity and functionality.

NFTs and Ordinals on Bitcoin​

note

This app is deprecated and discontinued

BeL2 technology also opens up new possibilities for creating and managing non-fungible tokens (NFTs) on the Bitcoin network, including support for Bitcoin Ordinals.

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  • Create and manage NFTs directly on the Bitcoin network
  • Support for Bitcoin Ordinals, allowing for unique, non-fungible data to be associated with satoshis
  • Integration with EVM-compatible chains for broader NFT functionality

Potential Applications​

  • Digital art and collectibles backed by Bitcoin's security
  • Tokenization of real-world assets on the Bitcoin network
  • Cross-chain NFT marketplaces integrating Bitcoin-based NFTs

These use cases and demos illustrate the transformative potential of BeL2 technology. By connecting Bitcoin with smart contract platforms and DeFi applications, BeL2 is paving the way for a more integrated, secure, and versatile blockchain ecosystem. Whether you're a Bitcoin holder looking to maximize your assets, a DeFi enthusiast seeking new opportunities, or a developer building cross-chain applications, BeL2 offers innovative solutions that leverage the strength of Bitcoin while expanding its utility.