AtomiqDeFi, powered by Mintlayer’s revolutionary atomic swap technology, seeks to enhance interoperability, eliminate dependence on custodians, and unlock new opportunities for decentralized finance on Bitcoin.
The creation of a decentralized finance (DeFi) ecosystem on Bitcoin (BTC) had not gained widespread adoption on the blockchain until the Taproot upgrade, which opened the door to smart contracts—self-executing codes that eliminate intermediaries—on Bitcoin’s layer 1 blockchain.
Projects like Ordinals introduced new capabilities to Bitcoin’s network and led to a surge in demand for Bitcoin’s DeFi functionality. However, users began to realize that building on layer 1 had its flaws, prompting developers to explore layer-2 (L2) strategies to address the bottlenecks. While there were already solutions for Bitcoin DeFi using layer 2, most relied on Wrapped Bitcoin or wrapped tokens in general, which enabled the usage of BTC across different blockchains.
However, Wrapped Bitcoin and its derivatives required custodians for reserve management, compromising the decentralized structure. This model also introduced risks, such as the smart contract breaches seen on Poly Network, a cross-chain interoperability protocol.
In response to the challenges faced by Bitcoin DeFi, atomic swaps emerged as a solution, eliminating the need for wrapped tokens. Atomic swaps facilitate direct transactions between blockchains while ensuring simultaneous execution.
As a Bitcoin L2 protocol, Mintlayer is developing the necessary technologies to enable atomic swaps. Additionally, AtomiqDeFi, the first project incubated by Mintlayer, is developing a suite of decentralized applications (DApps) using Mintlayer’s atomic swap technology. These DApps will include the world’s first Atomic-Swap-powered decentralized exchange (DEX) on Bitcoin. Charlie Shrem, founder of the Bitcoin Foundation, expressed his excitement about the project, stating:
“AtomiqDeFi is building an ecosystem of tools, including a launchpad, a decentralized exchange (DEX), an end-user-focused wallet, and a cross-chain bridge, all powered by the Mintlayer protocol.”
One of the products within this ecosystem is the Atomiq DEX, which will be implemented in phases and allow users to trade Mintlayer-based tokens and BTC directly from their wallets. The initial version of Atomiq DEX will enable same-chain atomic swaps, with later stages facilitating the exchange of BTC and stablecoins for Mintlayer’s native token ML and assets that adhere to Mintlayer standards. Lester Lim, founder of X21 Digital, praised Atomiq DeFi’s DEX, saying:
“Mintlayer offers the Atomiq Pad for initiatives looking to launch projects within the ecosystem. The platform assists projects seeking early-stage liquidity and offers token distribution as a solution to help kickstart their communities. It also aims to be compatible with the Lightning Network, an L2 payment channel for scalable transactions.”
In addition to the Atomiq Pad, the ecosystem features the Atomiq Wallet, a noncustodial wallet that supports multiple cryptocurrencies and blockchain networks. With this wallet app, users have complete control over their digital assets, including the ability to stake tokens, participate in governance, and access DApps.
The Atomiq Bridge is another strategic expansion for the team, aiming to facilitate easy transactions between Ethereum Virtual Machine (EVM) compatible chains. The project is pursuing partnerships with bridge providers like Layer0 and Wormhole to expedite integration with the Mintlayer protocol.
Leading Atomiq DeFi is Zaid Ismail, who transitioned from his role as the chief operating officer of Mintlayer to become the founder and CEO of Atomiq DeFi. Zaid’s background in AI-driven healthcare innovation and enterprise automation platforms has laid the foundation for his role in blockchain technology. Under his leadership, Atomiq DeFi became the first project to receive $1.5 million from the Mintlayer Ecosystem Fund, marking a significant step towards unlocking Bitcoin’s DeFi capabilities.
During a $3 million seed round, Atomiq DeFi secured X21 Digital as its lead investor. The current seed round includes prominent venture capital firms such as NXGen, Dutch Crypto Investors (DCI Capital), Spicy Capital, Altcoin Buzz, and the AlphaBit fund run by Liam Robertson. Additionally, Atomiq DeFi benefits from the insights of Lester Lim from X21 and Charlie Shrem from the Bitcoin Foundation, who serve on its advisory board.
As Atomiq DeFi prepares for its next phase, it is in advanced discussions with tier 1 launchpads, with announcements on the horizon. Recognizing the competitive nature of the Bitcoin DeFi space, Atomiq DeFi has decided to forge strategic partnerships with projects including SatoshiSync, Portal, and OrdinalsBot, further enriching the Bitcoin ecosystem.
In addition to fueling AtomiqDeFi’s growth, the Mintlayer Ecosystem Fund provides support through its incubator, accelerator, and grants programs for Bitcoin-centric DeFi projects. Grants typically range from $50,000 to $200,000, although larger grants can be given to incubated projects like Atomiq DeFi. Enrico Rubboli, the founder of Mintlayer, expressed his trust in Atomiq DeFi, stating:
“The fund strategically supports projects that bring new and unique offerings to the ecosystem. Guiding newly developing projects through incubation programs and helping to grow and scale proven projects with its accelerator program, Mintlayer aims to empower the Bitcoin DeFi sector.”
Building on Mintlayer’s future vision, AtomiqDeFi argues that it’s time for Bitcoin to claim the DeFi crown, despite DApp developers’ preference for Ethereum. AtomiqDeFi plans to list on various crypto exchanges after the token generation event, with negotiations currently underway.
With the support of Mintlayer, AtomiqDeFi is forging a new path for Bitcoin in the DeFi space and laying the foundation for a more interconnected and decentralized financial ecosystem. Through new collaborations, the untapped potential of the Bitcoin blockchain can be unlocked, shaping the future of DeFi based on the original cryptocurrency.
Learn more about Mintlayer and AtomiqDeFi.
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