Author: Anymose Source: X, @anymose96
RGB++ has finally updated to RGB++ Layer with a complete DeFi suite. What opportunities are there? This article will reveal them to you one by one with plain language and vivid cases.
Since 2024, the Bitcoin ecosystem has dominated this round of new narratives. New infrastructure aimed at Bitcoin expansion, new assets with anti-VC as the slogan, and new applications with the mission of replicating the glory of Ethereumconstitute the main framework of the new narrative. In the infrastructure sector, Bitcoin Layer2 has been repeatedly mentioned, and it is also a battleground for strategists. If we only consider solutions based on extended "chains", then the account model compatible with the EVM virtual machine and the Bitcoin-like UTXO model have become the two fastest-growing areas.
Figure 1: Simple diagram of Bitcoin expansion construction ideas
The account model of the EVM cannot solve the problem of Bitcoin's native asset security for the time being, and requires the help of (centralized) cross-chain bridges or asset custodians to complete asset bridging, while solutions based on the UTXO model can use bridgeless cross-chain methods such as isomorphic binding to achieve this function. Recently, the RGB++ protocol based on the UTXO model has been upgraded and the RGB++ Layer has been officially launched, which marks the unification of all protocols and assets that support the UTXO model, including new protocol types such as Runes and BRC20. This article will use a graphic approach to help you understand this new technology and explore the wealth code brought by this technology. What is RGB++ Layer? RGB++ Layer is an upgrade from RGB++. Before the upgrade, the RGB++ protocol was a Bitcoin-layer coin issuance protocol, which was characterized by supporting bridgeless cross-chain and using CKB as its decentralized indexer. This upgrade extends the scope of technical application to all networks that support UTXO, such as BSV, BCH, DogeCoin, and other new Bitcoin layer asset protocols such as Runes, BRC20, etc. Let's take a closer look at which technical modules have been upgraded to be used by so many public chains and unify very scattered assets under one standard.
Figure 2 Schematic diagram of RGB++ composition
RGB++ Layer, like Omni Layer, uses the security of the UTXO model and the powerful infrastructure of the Bitcoin blockchain to ensure the security and reliability of all transactions and asset management. RGB++ Layer provides a universal asset issuance and management mechanism, allowing users to create and manage various digital assets on RGB++ Layer.
RGB++ Layer has Turing-complete smart contract functions, enabling developers to create and execute complex contract logic. Smart contracts expand the scope of application of the UTXO model and provide support for various decentralized applications.
Omni Layer is mainly based on the Bitcoin blockchain, and the bridgeless cross-chain feature of RGB++ Layer makes it further in interoperability and flexibility, able to interact with more blockchain networks, allowing assets on chains such as BTC, CKB, BSV, BCH, etc. to operate seamlessly on RGB++ Layer.
Overall, RGB++ Layer is an independent and universal UTXO smart contract layer, which can provide bridgeless cross-chain and decentralized financial infrastructure for the entire UTXO model ecosystem. To achieve this goal, RGB++ browser and DeFi infrastructure based on RGB++ Layer will also be launched soon. In addition, there are other DeFi suites, including stablecoin Stable++, staking protocol LST CKB, and so on.
Figure 3 RGB++Layer Schematic Diagram of Defi Components
RGB++ Layer's features are not just born for Defi. Although the entire ecosystem has begun to promote BitcoinFi, RGB++ Layer has a wider range of value and significance.
First, RGB++ Layer can greatly improve the liquidity and returns of BTC assets. Bitcoin has been expanding for many years, and many solutions have been born. Each solution is also working hard to build its own ecosystem. Over time, the dispersion of various assets is particularly strong. Even the same UTXO model has a serious fragmentation.RGB++ Layer's bridgeless cross-chainfunction allows BTC to interoperate with other UTXO chains (such as CKB, BSV, BCH, etc.), breaking the island effect between chains. This will promote collaboration and resource sharing between different blockchains and enhance the connectivity and liquidity of the entire UTXO ecosystem. With the help of smart contracts, BTC assets can be used in more application scenarios, such as pledge lending, liquidity mining, cross-chain transactions, etc. This not only improves the liquidity of BTC assets, but also provides holders with more income opportunities, further enhancing the financial attributes of BTC.
Secondly, from the user's perspective, RGB++ Layer provides a seamless user experience. Users can use existing BTC wallets to seamlessly access and use all protocols and applications that support RGB++ Layer, without having to download a bunch of wallets and learn how to use them. This improvement in user experience can greatly reduce the threshold for user participation and promote the adoption rate of the entire Bitcoin ecosystem.
Third, don't forget that RGB++ Layer itself is a Lego-like combinable. Developers can flexibly combine various Defi protocols and classify assets that support the UTXO model into a unified liquidity management system. At the same time, RGB++ also has general asset issuance and management capabilities. Various assets such as Coin (FT) and DOBs (NFTs) can be managed in a unified manner, providing a flexible asset issuance and trading mechanism. This universal asset management capability makes it easier to build and manage complex assets on the UTXO model, which can greatly expand the application scenarios of the UTXO model.
After understanding what RGB++ is and its significance to the entire Bitcoin ecosystem, our question is: What can RGB++ Layer do? Especially for developers and ordinary ecosystem participants, what opportunities are there? Let's first throw out Figure 4 and then expand on it in detail.
Figure 4 What RGB++Layer can do
The characteristics of blockchain projects are asset-first and community-first. It is crucial for a protocol to have a fully functional and well-managed asset issuance function. The first function of RGB++ Layer is unified asset issuance and management. It can easily issue various assets on the blockchain with the help of smart contracts. RGB++ has previously tested asset issuance, but its function is limited to asset issuance, and the liquidity and empowerment of assets are not supported by infrastructure. After the protocol upgrade, developers can more easily issue UTXO common asset types, and give assets richer operations through Defi Lego components, such as cross-chain, trading, staking, lending, providing liquidity, community governance, etc.
In the RGB++ Layer, the issued assets are uniformly abstracted and have Turing-complete programmability. With the help of bridgeless cross-chain and smart contracts, the asset circulation of each UTXO chain has actually been opened up. This gives asset issuers a new inspiration. The inspiration of issuing assets in the RGB++ Layer is for the entire UTXO ecosystem, and assets can be planned from a larger perspective, user base, and ecological environment.
RGB++ Layer has added blockchain browsers and Defi kits in the update, and composability has become the necessary foundation for the large-scale adoption of Bitcoin Defi. In the first disclosed UTXOSwap protocol, the intent-based liquidity market-making solution has a huge improvement over the order book and the automatic market maker (AMM). Through UTXOSwap, users and third-party market makers can provide liquidity for assets and participate in liquidity mining.
Stable++ provides the necessary stablecoin support for Defi. This project has just received investment from the CKB Ecological Fund. The team plans to develop the first over-collateralized stablecoin protocol on the RGB++ Layer to serve the Bitcoin ecosystem. In this plan, users can use Bitcoin assets such as BTC, CKB or other new assets issued by RGB++ Layer as collateral to mint stablecoin USDPP. ccBTC is a Bitcoin derivative jointly launched by CKB Ecological Fund, Meson Finance and CrossChain Token, issued on the CKB mainnet and anchored 1:1.
The improvement of these infrastructures can make RGB++ Layer more like a Lego modular Defi component platform.Based on the "UTXO Lego" design, developers can flexibly combine various DeFi protocols to stimulate innovation, such as UTXO Lending platform, cross-chain NFT market, privacy trading platform, etc., to provide diversified financial services for ecological users.
With RGB++ Layer, we can uniformly manage all UTXO protocol assets and even Bitcoin layer new protocol assets such as Runes, BRC20, etc. The assets here include not only Coin(FT) but also various DOBs (NFTs). With the support of a unified protocol and liquidity incentives, multiple forms and multiple assets will be connected. Some can be exchanged through bridgeless cross-chain transactions or Swap, and some can be exchanged directly through Dex.
Another meaning of management is to improve efficiency, especially asset efficiency. Users can use the payment tools on RGB++ Layer to make fast and low-cost payments and settlements between different blockchains. Developers can use RGB++ Layer to build a cross-chain DEX and lending platform that supports asset trading or lending on chains such as BTC, CKB, BSV, BCH, etc. Users can use this service to seamlessly exchange assets from different blockchains.
RGB++ Layer has the potential to integrate the ecological assets of the huge UTXO model, and will eventually form an asset management service with smooth user experience, sufficient liquidity, and extremely high asset efficiency on this ecology.
What wealth opportunities will RGB++ Layer launch?
The best opportunity for an ecosystem to rise must not miss the leading assets. These assets have extremely high recognition and a wide user base. When funds flow into the ecosystem, large funds will first enter the leading assets. Among these assets, CKB must be the most important.
The core foundation of RGB++ Layer is still built on the CKB ecosystem. With the continuous increase in applications, CKB tokens will not only undergo tremendous changes in the supply side, but also in the direction of circulation. Specifically, with the continuous increase in ecological projects, especially the vigorous development of assets such as DOBs, the occupancy rate of CKB Cells will increase sharply, which will directly affect the output and occupancy ratio of CKB tokens. On the other hand, innovative DeFi combinations require a large amount of CKB to be locked, pledged or provide liquidity, which will further reduce the number of circulating CKB tokens. At present, CKB tokens are the only tokens listed on major exchanges, with sufficient liquidity and popularity. If a new wave of enthusiasm is caused by RGB++ Layer, CKB must be listed as the first wealth opportunity.
In addition to CKB,the first asset based on the RGB++ protocol, Sealshould be paid attention to. The community has given Seal a lot of empowerment. UTXOSwap opened the Seal/CKB trading pair at the first time. Through liquidity incentives, Seal's trading depth is getting better. The first Launchpad platform IBO (Initial Bitcoin Offering) in the BTC ecosystem, developed and operated by the Seal community, will be launched during the BTC 2024 conference this week. The first Seal to Earn project is the UTXO-based over-collateralized stablecoin protocol Stable++. The total amount of Stable++ protocol tokens is 21M, and 20% of the shares will be airdropped to Seal's pledgers on the IBO platform.
In terms of DOBs, as RGB++'s most well-known DOBs asset, Nervape is still in the market undervalued stage for the time being. After more than three years of development, Nervape has gained widespread recognition in the ecosystem, and the team is excellent in IP development, visual design, and technical research and development. However, due to the lack of financial infrastructure, Nervape cannot enter a wider ecological vision, nor can it generate more financial gameplay links, but with the help of RGB++ Layer, it is very likely to usher in a new round of gameplay upgrades and wealth opportunities.
Another DOBsUnicornunicornhas completed the first round of "opening the map", after which the unicorn obtained DNA, and various forms of creation can be carried out around the DNA community, such as games, PFP, novels and even DeFi innovations. Reëm is a PFP project created by the community based on Unicorn DNA. It has become the CKB ecosystem with the most DOBs minted, and the number of holders is also among the top three, but the current market value is extremely low. If RGB++ Layer can be used to provide more financial gameplay, Reëm is very likely to reproduce the crazy growth of Unicorn.
Figure 5 RGB++Layer New Wealth Code?
The best wealth opportunity may always be the next one. New assets may be launched through an asset launch platform. With the help of the RGB++ Layer unified asset protocol, excellent projects from many other chains such as BCH, BSV, DogeCoin, etc. can be attracted to launch here.
Only one contract is needed to launch new assets on the RGB++ Layer. Assets can be launched and deployed on multiple chains. Liquidity pools can also be shared across chains, and multiple assets can be circulated without bridges. The issuance of assets becomes simpler and management is more efficient.
The DeFi infrastructure projects launched on the first batch of RGB++ Layer are all innovative assets and are very worthy of attention. DEX platform UTXOSwap, stablecoin project Stable++, ccBTC, LST and other projects all have the expectation of issuing coins, and you can participate deeply in the projects at a very early stage. Behind the innovative assets are new applications. If you pursue relatively stable returns, you can consider tilting BTC, CKB and stablecoins to this ecosystem. Ecological positioning The best wealth opportunity is still entrepreneurship. Developers can start a new business in the vast world of RGB++ Layer. CKB Ecological Fund generally gives Grants incentives of about 50,000 for ecological projects, and there is no upper limit on incentives for important and excellent projects, helping early projects grow. After the unified liquidity market, more professional market makers, custodians and other service roles will emerge, and development tools will be increasingly improved. It is undoubtedly the best choice to start a business with the help of RGB++ Layer.
According to observations, RGB++ Layer will focus on asset issuance and liquidity incentives, so developers can focus on it. Asset launch platform (LaunchPad), decentralized exchange (DEX), cross-chain DOBs trading market, mortgage lending, stablecoins, liquidity mining such as staking and re-staking, etc. will definitely be the first batch of key support.
In addition, developer tools and developer services will also be areas with very high demand in the short term. Technical documentation, training, hackathons, bounties, and development tools and data dashboards provided to developers will also be welcomed.
Cipher, co-founder of CKB and proposer of RGB++, talked about the unique significance of RGB++ Layer and UTXO model to BTCFi, and some questions and opinions about CKB and Bitcoin ecology.
JinseFinanceRGB++ Layer is based on the RGB++ protocol and uses isomorphic binding and Leap technology to provide a full-chain interactive experience for RGB++ native assets or inscriptions/runes between UTXO-type public chains such as BTC, CKB, and Cardano without the need for cross-chain bridges.
JinseFinanceAfter CKB launched the Bitcoin layer 1 asset issuance protocol RGB++ in the first half of the year, it has now launched CKB RGB++ Layer, which will not only ignite Bitcoin Finance (BTCFi), but may also drive all UTXO chains to take off.
JinseFinanceRGB++ Layer is a concept upgraded from the RGB++ protocol, representing a higher level of abstraction that extends isomorphic binding, smart contract capabilities, and bridgeless cross-chain functionality to all UTXO chains.
JinseFinanceLet’s talk about RGB++ and CKB, the dark horse of this bull market, to explore the relationship between RGB++ and RGB, and why RGB++ should be upgraded to RGB++ Layer.
JinseFinanceOne-time seals are the cornerstone of the RGB/RGB++ protocol, which expands the capabilities of Bitcoin.
JinseFinanceWhen the RGB++ protocol was first launched, the market was very enthusiastic. The first use case of the “isomorphic binding” technology proposed by RGB++ combined the BTC network and the CKB network, which also triggered people’s new understanding of the CKB network.
JinseFinanceWith the hot issuance of RGB++ and related assets, the discussion on the principles of RGB and RGB++ protocols has gradually become a topic of concern for more people. However, everyone realizes that to understand RGB++, you must first understand the RGB protocol.
JinseFinanceThe top priority of this ecosystem now is to vigorously improve the user experience and quickly attract users to participate in its ecosystem construction.
JinseFinanceThe competition among third-party settlement layers under the Bitcoin chain may begin soon.
JinseFinance