dlcBTC

dlcBTC enables Bitcoin holders to participate in DeFi protocols while fully owning their assets. The protocol employs Discreet Log Contracts (DLCs) to lock Bitcoin in a multisig UTXO, with one key held by the user and the other distributed across a decentralized network. dlcBTC is distinct from wBTC and other bridged assets like tBTC and BTC.B by eliminating the need for intermediaries or custodians, instead locking Bitcoin on-chain with user sovereignty as a core principle. dlcBTC is secured by the full hashrate of the Bitcoin network and doesn't require users to send their BTC to third-party custodial deposit addresses. Compared to wBTC specifically, dlcBTC offers three advantages: - Self-wrapped: dlcBTC is minted by having depositors (dlcBTC merchants) self-wrap, locking BTC with themselves in a DLC. Self-wrapping means that the DLC can only pay out to the original depositor, such that the BTC cannot be stolen in a hack or confiscated by government actions. - Fully automated: wBTC takes 3-12 hours to mint or burn due to manual steps in BitGo's custody process. dlcBTC is fully automated and can mint and burn in 3-6 BTC block confirmations - Flexible fees: Since dlcBTC is not a custodian, dlcBTC has less overhead and can offer more competitive mint and burn fees.