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📝Ethereum Smart Contracts Proliferate On Bitcoin

The Defiant

DeFi Daily

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Competition among teams building Layer 2 networks offering compatibility with Ethereum Virtual Machine smart contracts on Bitcoin is heating up. We recap the front-runners of the burgeoning Bitcoin L2 sector, and explore some of the projects that have already delivered smart contract functionality on Bitcoin.

In other Bitcoin news, the number of BTC users in El Salvador appears to have dropped by 50%, despite the country recognizing BTC as legal tender since 2019.

Plus, Frax has completed its v3 rollout with the launch of its new bonds feature, and BlockInvest is bringing distressed real estate loans on-chain via Polygon.

✍️ In today’s newsletter:

  • Forthcoming Bitcoin L2s boast EVM-compatibility
  • Salvadoran Bitcoin users sink 50% year-over-year
  • Frax bonds finalize v3 rollout
  • Distress real estate tokenized on Polygon

🎙️The Defiant Podcast & Interviews

📈 Markets in last 24 hrs:

TickerValue24h
BTC$41,601 0.82%
ETH$2,490 0.9%
S&P 500$4,840 1.23%
GOLD$2,032 0.65%
Arch WEB31.27pts -0.42%
FINANCE1.18pts 0.39%
INFRA1.45pts -1.46%
CONSUMER1.37pts -0.18%
Arch WEB3

Learn more about Arch Indices here.

🎬 WATCH

Check out our interview with the popular crypto trader and commentator, Fiskantes, to get his take on the recent bullish market momentum. Also watch our podcast with Matt Hougan, the CIO of Bitwise, to get his take on what the launch of spot Bitcoin ETFs means for the digital asset markets and web3 sector.


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Tech

Developers Race To Bring EVM Functionality To Bitcoin

TLDR Development teams are racing to deliver the first Bitcoin Layer 2 network offering EVM smart contract compatibility. The hype comes despite Rootstock launching EVM support via a Bitcoin sidechain, and Stacks deploying Clarity Virtual Machines smart contracts via a "Layer 1.5" network in recent years.

SO WHAT The projects rushing to launch Bitcoin L2s boasting EVM-compatibility aim to facilitate the growth of a vibrant DeFi ecosystem on top of Bitcoin. The moves follow Ethereum's Layer 2 ecosystem ballooning to a more than $20B TVL.

READ MORE: Developers Race To Bring EVM Functionality To Bitcoin


Adoption

Bitcoin Users in El Salvador Halved to 12% Last Year: Survey

TLDR A recent study from the University Institute of Public Opinion of El Salvador indicates the number of Salvadoran Bitcoin users sank from 21% in 2022 to 12% in 2023. The decline in Bitcoin adoption comes in spite of El Salvador's government recognizing BTC as legal tender since 2019.

SO WHAT El Salvador's president, Nayib Bukele, has consistently invested a share of the country's treasury into BTC in recent years. According to Nayib Tracker, El Salvador's Bitcoin holdings are currently down 3.6%.

READ MORE: Bitcoin Users in El Salvador Halved to 12% Last Year: Survey


DeFi

Frax Completes V3 Rollout With Bonds Launch

TLDR Frax Finance, a top 20 DeFi protocol, has completed its v3 rollout with the launch of Frax Bonds. Bondholders can redeem the protocol's FRAX stablecoin at a future date after purchasing at a discounted rate via Dutch auction.

SO WHAT Frax hopes to mirror the value proposition of U.S. Treasury bonds with its new product offering. Frax deployed $20M into U.S Treasury bonds via Centrifuge in December.

READ MORE: Frax Completes V3 Rollout With Launch Of Bonds


Real-world assets

Italian Startup To Tokenize Distressed Loans On Polygon

TLDR BlockInvest, an Italian web3 startup, is bringing distressed loans on-chain via Polygon. The company seeks to tokenize $100M worth non-performing loans by issuing digital notes on-chain.

SO WHAT BlockInvest's entrance into the web3 sector comes as real-world assets are growing momentum on-chain. The value of tokenized treasuries is up 700% since the start of 2023.

READ MORE: Italian Startup To Tokenize Distressed Loans On Polygon


🔎 OUR REPORTERS ARE WATCHING


🌍 ELSEWHERE

  • Market volatility causes $138 million of liquidations on centralized exchanges in 24 hours ( The Block)
  • Terraform Labs Declares Bankruptcy in Delaware ( CoinDesk)
  • Nethermind pushes hotfix after client caused invalid blocks on Ethereum ( Cointelegraph)