The L2 solution Arkade, built on the Bitcoin blockchain, was launched to enable the development of a full-fledged decentralized finance (DeFi) ecosystem on the foundation of BTC.
After two years of development, the Ark Labs team unveiled Arkade, an infrastructure designed to adapt the Bitcoin network for DeFi use without altering its base layer.
Arkade integrates a range of tools for building decentralized financial services. Key solutions include:
- Fulmine, a wallet daemon for optimizing the Lightning Network liquidity;
- Arkade Wallet, a reference implementation of a self-custodial crypto wallet with instant transactions;
- BTCPayServer plugin, which allows BTC payments with minimal fees and no confirmation delays.
All products are released as open-source software. Developers also have access to ready-to-use software development kits (SDK) in TypeScript, Golang, and Rust, along with tools for building wallets, payment apps, and services supporting instant transactions.
The Arkade launch is currently in public beta, aimed at developers interested in creating advanced solutions on the platform.
Partners from across the crypto ecosystem, including Breez, LayerZ Wallet, BTCPayServer, Boltz, BullBitcoin, and Lendasat, joined the launch. While the system was tested and is ready for real-world use, the devs note it’s still in early development, and certain features will continue to evolve based on community feedback.
Alongside the platform launch, Ark Labs introduced Arkade Assets, a new technology that enables the issuance of native assets, including stablecoins and tokens, directly on Bitcoin. Unlike BRC-20, the Liquid Network, or wrapped tokens, Arkade Assets doesn’t require third-party indexers, eliminating risks related to bridges and federations.
The system is built on the UTXO (Unspent Transaction Output) model, preserving Bitcoin’s fundamental principles. Each asset is recorded within a transaction via the OP_RETURN structure in TLV (Type-Length-Value) format, ensuring full transparency and data integrity. Asset issuance and token parameters are managed through a control asset mechanism, allowing, for example, stablecoins to dynamically adjust supply or security tokens to comply with regulatory requirements.
A special focus is given to the Teleport mechanism, which enables asset transfers between transaction batches without compromising UTXO integrity. This makes instant and trustless asset transfers possible in both on-chain and off-chain environments.
Arkade Assets employs hybrid validation, meaning operations can be executed either on the Arkade network (off-chain) or on the Bitcoin main chain, giving users full control over their assets without relying on any particular platform.
According to the developers, Arkade Assets paves the way for true Bitcoin-based DeFi apps, from liquidity pools and synthetic assets to decentralized trading and lending protocols. The technology lays the groundwork for native stablecoins that can move, participate in smart contracts, and engage in financial operations entirely within the Bitcoin ecosystem.
Over the coming months, the team plans to expand Arkade’s capabilities with new security mechanisms, enhanced scripting functions, and further integrations. The launch of Ark Labs’ new solutions marks a major step toward transforming Bitcoin from a store of value into a fully programmable money and decentralized finance platform.
