Bitcoin Gets DeFi Upgrade with Velar’s Launch of First PerpDEX

Velar has made a significant breakthrough by launching the world’s first decentralized perpetuals exchange (PerpDEX) built natively on Bitcoin. This marks a major step forward for decentralized finance (DeFi) on the Bitcoin network. Velar, a platform focused on developing advanced trading products and user interfaces for Bitcoin-backed assets, is aiming to revolutionize how Bitcoin holders can engage with DeFi products without having to leave the Bitcoin ecosystem.

The PerpDEX is deployed on Stacks, a Bitcoin layer 2 solution, and it allows users to trade perpetual futures contracts with leverage while maintaining full control over their assets, thanks to the decentralized nature of the platform. This innovative product opens up new possibilities for Bitcoin users by allowing them to access leverage and deep liquidity without relying on wrapped tokens or centralized custodians. The platform currently offers a trading pair of sBTC-USDh, where USDh is a synthetic dollar created specifically for Bitcoin DeFi by Hermetica. USDh will serve as the base trading pair across the Velar exchange.

The new platform takes advantage of the Stacks blockchain’s quick five-second block times and decentralization, while leveraging Bitcoin’s inherent security and finality. This combination of speed, decentralization, and Bitcoin-backed finality aims to create an efficient and secure trading environment for perpetual contracts. By integrating these technologies, Velar aims to provide Bitcoin holders with advanced trading options, enhancing capital efficiency without compromising on security.

Mithil Thakore, CEO of Velar, described the launch of the PerpDEX as a defining moment for the future of DeFi on Bitcoin. He emphasized that it opens up opportunities for traders to access leverage and liquidity directly on the Bitcoin blockchain, making the platform an essential tool for Bitcoin-native financial products.

Jakob Schillinger, CEO of Hermetica, also highlighted the importance of perpetual trading in the crypto markets and expressed excitement about the ability to now offer it on Bitcoin thanks to Velar’s platform. Prior to this launch, perpetual trading was largely inaccessible to Bitcoin users without relying on wrapped tokens or centralized exchanges.

Velar’s PerpDEX sets the stage for the next phase of Bitcoin DeFi, enabling users to trade Bitcoin-backed perpetual contracts in a decentralized manner and fully within the Bitcoin ecosystem. This marks a critical evolution in Bitcoin’s involvement in DeFi, and Velar is positioning itself as a foundational layer for Bitcoin-native financial products, unlocking new trading capabilities for the Bitcoin community.