The Bitcoin ecosystem continues to evolve beyond its foundational role as digital gold. With growing demand for decentralized finance (DeFi) functionality, developers are unlocking new ways to bring Bitcoin into the broader Web3 economy—without compromising on security or decentralization. At the forefront of this movement is DLC.Link, the first native Bitcoin cross-chain protocol leveraging Discreet Log Contracts (DLCs) to enable self-custodied Bitcoin participation in DeFi.
We’re excited to announce that OKX Ventures, the investment arm of OKX, has officially invested in DLC.Link. This strategic move underscores our commitment to supporting innovative infrastructure that expands Bitcoin’s utility while preserving its core principles: security, decentralization, and user sovereignty.
How DLC.Link Is Revolutionizing Wrapped Bitcoin
Traditional wrapped Bitcoin solutions like wBTC rely on centralized custodians to hold underlying BTC reserves. While these models have enabled Bitcoin to enter DeFi ecosystems—particularly on Ethereum—they introduce counterparty risk and censorship vulnerabilities.
DLC.Link changes the game by introducing dlcBTC, a decentralized wrapped Bitcoin token minted through self-wrapping. Instead of depositing BTC with a third party, users lock their Bitcoin directly into a Discreet Log Contract (DLC), which ensures that only the original depositor can reclaim the funds. This mechanism eliminates custodial risk and makes dlcBTC inherently theft-proof.
👉 Discover how decentralized finance is evolving with native Bitcoin protocols.
The Power of Discreet Log Contracts (DLCs)
DLCs were introduced as part of Bitcoin’s Taproot upgrade in 2021, enabling smart contract-like functionality without altering Bitcoin’s base layer. These cryptographic agreements allow two parties to lock up funds and release them based on verifiable off-chain data—such as price feeds from trusted oracles—without requiring trust or intermediaries.
DLC.Link leverages this technology to create a secure bridge between Bitcoin and Ethereum-based DeFi platforms. When a user locks BTC in a DLC, an equivalent amount of dlcBTC is minted on Ethereum. The funds remain under the user’s full control at all times, and redemption is guaranteed solely to the original key holder.
This approach offers several critical advantages:
- No custodial risk: Funds are never held by a third party.
- Censorship resistance: Only the depositor can withdraw, making it nearly impossible to freeze assets.
- Native Bitcoin security: Leverages Bitcoin’s robust consensus without relying on sidechains or L2 validators.
Bridging Bitcoin to DeFi — Without Sidechains
Many Bitcoin scaling efforts focus on building Layer 2s or sidechains—such as Stacks or Rootstock—that require additional infrastructure and often compromise on decentralization. DLC.Link takes a fundamentally different path.
Rather than creating a new chain or modifying Bitcoin’s consensus rules, DLC.Link operates natively within Bitcoin’s existing framework. It uses DLCs to securely attest to the locked BTC state and then mints dlcBTC on Ethereum via a network of DLC Attestors.
These Attestors are run by reputable node operators—including OKX, HashKey Cloud, Republic, P2P.org, and Dextrac—who also operate Ethereum validators. They provide cryptographic proofs that the BTC remains locked and valid, enabling seamless interoperability while maintaining high security standards.
This design allows dlcBTC to benefit from:
- Bitcoin’s unmatched security model
- Ethereum’s rich DeFi ecosystem
- Minimal trust assumptions
Why dlcBTC Could Become a Top 10 Crypto Asset
As of now, wBTC ranks among the top 15 cryptocurrencies by market cap—a testament to the strong demand for Bitcoin in DeFi. Yet its centralized custody model poses ongoing risks. In contrast, dlcBTC is the only wrapped Bitcoin that originates from self-custody, offering a truly decentralized alternative.
Aki Balogh, co-founder of DLC.Link, believes dlcBTC has the potential to surpass current wrapped BTC solutions:
"wBTC has reached Top 15 token status, despite its centralized custody model. In contrast, dlcBTC is the only wrapped Bitcoin that is minted from self-custody. DLCs, which were added to Bitcoin in 2021, enable a theft-proof wrapping mechanism without the need to introduce a bridge or L2 chain. dlcBTC will boost the adoption of Bitcoin in DeFi and has the potential to become a Top 10 token."
With over $15 billion worth of BTC already deployed in DeFi—mostly via custodial wrappers—the market is ripe for a more secure, decentralized solution. dlcBTC is uniquely positioned to capture this demand.
👉 Explore how next-gen DeFi protocols are redefining asset ownership.
OKX Ventures’ Vision for a Decentralized Financial Future
Dora Yue, Founder of OKX Ventures, shared her perspective on the investment:
"DLC.Link is a pioneering project aimed at bringing the power and innovation of DeFi to the Bitcoin ecosystem, without compromising security, decentralization, or user experience. We are pleased to support the vision and mission of DLC.Link. OKX Ventures believes that DLC.Link will unlock more value and potential within Bitcoin, and create a more open, inclusive, and decentralized financial system."
This investment aligns with OKX Ventures’ broader strategy of funding foundational Web3 infrastructure that empowers users with greater control over their assets.
Frequently Asked Questions (FAQ)
Q: What is dlcBTC?
A: dlcBTC is a decentralized wrapped Bitcoin token created through Discreet Log Contracts (DLCs). It allows users to use their self-custodied Bitcoin in Ethereum-based DeFi applications without transferring ownership or relying on third-party custodians.
Q: How does DLC.Link ensure my Bitcoin stays secure?
A: Your BTC is locked in a DLC using cryptographic contracts. Only you—the original depositor—can unlock and reclaim your funds. No intermediary ever holds your private keys, making the process theft-proof and censorship-resistant.
Q: Is DLC.Link a Layer 2 or sidechain?
A: No. DLC.Link does not require any changes to Bitcoin’s base layer or the creation of a separate blockchain. It operates natively using DLCs enabled by the Taproot upgrade, making it a truly layer-one-compatible solution.
Q: Who are the DLC Attestors?
A: DLC Attestors are trusted node operators—including OKX, HashKey Cloud, Republic, P2P.org, and Dextrac—that run Ethereum validators and provide cryptographic verification that BTC remains locked in DLCs.
Q: Can I use dlcBTC in existing DeFi platforms?
A: Yes. Once minted, dlcBTC functions like any ERC-20 token and can be used across major DeFi protocols on Ethereum for lending, borrowing, yield farming, and more.
Q: Why is self-custody important for wrapped assets?
A: Self-custody eliminates reliance on centralized entities that could be hacked, regulated, or shut down. It ensures true ownership and control over your digital assets—an essential principle in decentralized finance.
The Road Ahead for Native Bitcoin DeFi
The integration of Bitcoin into DeFi has long been limited by custodial dependencies and trust assumptions. DLC.Link breaks this mold by enabling native, self-custodied participation through battle-tested cryptographic protocols.
As adoption grows and more developers build on top of DLC infrastructure, we anticipate a surge in innovative use cases—from decentralized options markets to cross-chain derivatives—all powered by Bitcoin’s unmatched security.
With strong technical foundations, experienced partners, and backing from forward-thinking investors like OKX Ventures, dlcBTC is poised to become a cornerstone asset in the next generation of decentralized finance.
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This content is provided for informational purposes only and may cover products not available in your region. It does not constitute investment advice, financial recommendations, or legal/tax guidance. Cryptocurrency investments are high-risk; please consult a professional before making decisions.