Many people believe that the BTC layer2 ecosystem, which has been popular for more than a year, has ebbed, but it has not. If we only look at it from the perspective of asset issuance, it does feel like we are dancing in a bubble. But it’s quite different when looking at the value of practical applications. Recently, @utxostack released a set of DLSP (Decentralized Liquidity Staking Protocol) solutions. Various features point to its possibility of accelerating the implementation of the native Lightning Network? Come on, let me share my observations:

1) UTXO Stack, as its name suggests, has always been @NervosNetwork’s ambitious strategic trump card:

On the one hand, it is necessary to "flaunt" CKB's UTXO framework in BTC layer 2 and expand it into a large ecosystem, providing a modular toolkit so that developers can deploy UTXO BTC with one click Layer2, the ultimate vision is to gain the right to speak in the competition with EVM BTC layer2, which many people know.

On the other hand, many people have overlooked the reason, which is to combine the two major CKB innovative RGB++ asset issuance protocols and the Fiber Network enhanced version of the Lightning Network core. Features, from the behind-the-scenes technology infra "back-end" to the "front-end" by accelerating the implementation of Lightning Network applications, allowing the market to more intuitively experience the technological innovation significance of RGB++ and Fiber Lightning Network.

2) The innovation of RGB++ is that it allows users to issue various assets in BTC L1, and then Leap to the programmable BTC smart contract second-layer environment built by CKB , find the application value in it. At the time, this was undoubtedly a "dimensionality reduction blow" to the RGB protocol, which was originally obsessed with the original ecology of BTC.

RGB++ not only verified the feasibility of the RGB client verification protocol, but also used the original wallet, chain and other infrastructure of the CKB chain to let everyone see RGB first. In terms of actual use cases after implementation, to a certain extent, RGB++ is a "replacement" for the slow progress of RGB implementation;

Fiber Network is CKB Focusing on the Lightning Network implementation plan, through modular expansion technology, it can support multi-asset transmission (ecological assets other than BTC), cross-domain atomic payment (and the original Lightning Network atomic interaction).Pass), and will also accelerate the deployment of Lightning Network physical Nodes to provide a faster, low-cost, multi-asset, and high-privacy secure payment network.

Objectively speaking, the RGB++ protocol may be affected by the narrative silence of assets such as inscriptions, but the vision of accelerating Lightning Network payments that Fiber Network is trying to do will not be outdated;

3) Based on the above background, it is not difficult to understand the content of UTXO Stack. In simple terms: UTXO Stack is based on the RGB++ asset issuance protocol Fiber Network has built an enhanced protocol focusing on the "payment" scenario. In addition to introducing stablecoin solutions for the Lightning Network, I think the main function is DLSP (Decentralized Liquidity Staking Protocol):

1. Zero-cost node channel , Node nodes can prepay funds from the DLSP liquidity layer to help users open channels and reduce user entry barriers;

2. Automated liquidity management, using AMM model flow Sexual management mode reduces Node The management cost of the operation and maintenance party;

3. The derivative characteristics of liquidity staking can be incorporated into diverse financial methods such as Staking and Restaking, and the issuance of LnBTC, LnUSD, LnCKB, etc. Liquidity tokens allow users to earn income without sacrificing liquidity;

For example, if you want to operate and maintain a large-scale Channel usually requires a large amount of funds to be deposited in advance, which not only locks in liquidity, but also imposes considerable cost pressure. With the help of DLSP's financial derivatives platform, nodes can directly borrow money from the DLSP platform without the need to pre-deposit a large amount of BTC, and charge Using transaction fees to pay for borrowing costs will directly accelerate the emergence of Lightning Network node operators and solve the fundamental problem of slow development of traditional Lightning Networks.

In addition, this is another solution besides @babylonlabs_io and @GOATRollup that brings native non-custodial benefits to BTCFi application scenarios.

The construction of this DLSP layer is like a new "Eigenlayer" growing up in the Bitcoin Lightning Network system.

When the first goal of accelerating the implementation of the Lightning Network scenario is achieved, it will provide stable currency circulation support, decentralized exchange node solutions, wallets (JoyID), P2P payment SDK, hybrid Lightning Network, etc. The infrastructure will also be applied to the Lightning Network ecosystem.

It is equivalent to building a native extension layer support for the Lightning Network. As for the level to which the Lightning Network application market can be pushed, how many will be based on Lightning? Innovative new ways to play the Internet are emerging, so just wait and see for their subsequent development. (The recent UTXO Stack’s first large-scale airdrop incentive plan for the Lightning Network deserves attention.)

Above.

In general, although the name of UTXO Stack is very abstract, it is the supporting infrastructure built for the Lightning Network and the subsequent acceleration of the ecological implementation of the Lightning Network. The process route is already very clear.

Of course, its market valuation after TGE is also expected to be "positively related" to the progress of the Lightning Network. It is still unknown whether the BTC layer2 ecosystem of the UTXO framework can be redefined, but the ecosystem of the Lightning Network, a payment scenario channel, seems to be under control?