SatsBridge: defragmentating BTC liquidity on EVM

SatsBridge and Decentralized Aggregating Wrapper are two components of a solution designed to unify and solidify Bitcoin liquidity across EVM L2s and solve the fragmentation issue, that prevents TVL growth. Aggregating Wrapper is a Decentralized Bitcoin wrapper that aggregates BTC liquidity from legacy and innovative wrappers across layers, providing a unified ticker governed by DAO of liquidity stakeholders (wrapper vendors, lending protocols, LPs). SatsBridge is a non-custodial bridging protocol based on Bitcoin Lightning real-time settlement rails. Ultimately, it allows every LP to run its own low-cost Bitcoin bridge with self-custodial liquidity, without the need to trust or participate in economically unscalable MPC-federations of a single vendor or custodian, and yield on Lightning routing and bridging fees instead. The bridge is also immediately pluggable to all major exchanges thanks to Lightning channels; no listing is needed. It is currently live on Arbitrum. Together, SatsBridge and Aggregating Wrapper bring circularity to Bitcoin liquidity flows, and mitigate vendor gatekeeping risks, and bridge dependency. Ultimately, this setup makes tokenized Bitcoins more liquid, fungible, and redeemable than any underlying solution alone. It also reduces the cost of risk reassessment for each wrapper on every layer for lending protocols. https://satsbridge.com/litepaper