what's TradeLayer?
TradeLayer is a protocol that enables multisig derivatives trading and liquid, decentralized synthetic dollars on Bitcoin-based blockchains. It integrates derivatives and trade channel functionality into OP_RETURN tokens, facilitating advanced financial instruments without requiring new consensus rules. The platform supports features like multilateral IOU payouts, liquidations, ADL, and secure trading via a two-tier address model where funds are committed via cold addresses and traded via hot multisig channels. Originally developed on Litecoin, it emphasizes high-performance execution for algorithmic traders and large-size manual trades.
Tradelayer passed testnet tests with key mechanism fixes and launched a bug bounty program.
Passed all internal tests on testnet with fixes for IOUs, multilateral payouts, liquidation, and ADL mechanisms, and launched a bug bounty program for testnet.
Platform implements BTC deposit and sBTC borrowing functionality with multisig oracle staking secured by fraud proofs.
Platform offers $TL token payments for open-source scalping and swing trading algorithms to expand beyond existing default options and market maker demo.
Platform supports NFTs with planned airdrop of generative art series targeted at pro traders.
Platform soft launch scheduled for this week following completion of Rust orderbook refactoring.
The competitive landscape shifts focus to sub-150ms latency as the primary monetization realm, with competitor Paradex announcing 0.5 bps maker fees compared to Lighter's 0.2 bps.
Capital efficiency metrics reveal $8-10M in assets can generate $1B daily volume with intraday scalpers, reducing to $1M with backspread-hedged hyper-scalpers and $300k with HFT-level scalpers.
Platform launch timing expected to align with Litecoin ETF introduction, representing a potentially significant external market catalyst for the LTC-integrated infrastructure.
Platform implements new fee structure with maker rebates and announces 50% revenue sharing with liquidity providers, significantly higher than Hyperliquid's 7%.
TradeLayer announces Arkade VTXO integration with 4-hour Lightning Network settlement cycles and rBTC token creation from UTXO deposits for derivatives trading.
New VTXO/LN settlement system implements Merkle proofs for trustless BTC and LTC integration in Layer 1.5 architecture.
Derivatives trading optimization nears completion with Phantom implementation on BTC and browser extension support for LTC low-fee transactions.
Beta launch scheduled for Q2 2024 with getPositions feature implementation nearing completion.
New BitVM adaptation enables native UTXO wrapping with ROAST interface and 2-round challenge mode.