Forward the Original Title‘图解 RGB++Layer，小白也能看懂的财富机会’

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 Ethereum constitute 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 currently solve the problem of Bitcoin’s native asset security. It requires the help of centralized cross-chain bridges or asset custodians to complete asset bridging. In contrast, 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. This 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 graphics to help you understand this new technology and explore the wealth code it brings.

What is RGB++ Layer?

RGB++ Layer is an upgrade from RGB++. Before the upgrade, the RGB++ protocol was a Bitcoin-layer coin issuance protocol, characterized by support for bridgeless cross-chain and using CKB as its decentralized indexer. This upgrade extends its technical application to all networks that support UTXO, such as BSV, BCH, Dogecoin, and other new Bitcoin layer asset protocols like Runes and BRC20. Let’s take a closer look at the technical modules that have been upgraded to unify various scattered assets under one standard and be used by many public chains.

Figure 2 Schematic diagram of RGB++ composition

RGB++ Layer, like Omni Layer, uses the UTXO model’s security and the Bitcoin blockchain’s infrastructure to ensure the security and reliability of transactions and asset management. RGB++ Layer provides a universal asset issuance and management mechanism, allowing users to create and manage various digital assets.

RGB++ Layer has Turing-complete smart contract functions, enabling developers to create and execute complex contract logic. These smart contracts expand the application scope of the UTXO model and support various decentralized applications.

Omni Layer is primarily based on the Bitcoin blockchain, but the bridgeless cross-chain feature of RGB++ Layer enhances its interoperability and flexibility. It can interact with more blockchain networks, allowing assets on chains like BTC, CKB, BSV, and BCH to operate seamlessly on RGB++ Layer.

Overall, RGB++ Layer is an independent and universal UTXO smart contract layer that provides bridgeless cross-chain and decentralized financial infrastructure for the entire UTXO model ecosystem. To achieve this, the RGB++ browser and DeFi infrastructure based on RGB++ Layer will be launched soon. Additionally, there are other DeFi suites, including the stablecoin Stable++ and the staking protocol LST CKB.

Figure 3 RGB++Layer schematic diagram of Defi components

RGB++ Layer’s features are not just for DeFi. Although the ecosystem is promoting BitcoinFi, RGB++ Layer has broader 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 emerged, each trying to build its own ecosystem. Over time, the dispersion of various assets has become significant. Even the same UTXO model experiences serious fragmentation. RGB++ Layer’s bridgeless cross-chain function allows BTC to interoperate with other UTXO chains (such as CKB, BSV, BCH, etc.), breaking the island effect between chains. This promotes collaboration and resource sharing between different blockchains, enhancing the connectivity and liquidity of the entire UTXO ecosystem. With the help of smart contracts, BTC assets can be used in various application scenarios, such as pledge lending, liquidity mining, and cross-chain transactions. This not only improves BTC asset liquidity but also offers holders more income opportunities, enhancing BTC’s financial attributes.

Secondly, from the user’s perspective, RGB++ Layer provides a seamless experience. Users can use existing BTC wallets to access and use all protocols and applications that support RGB++ Layer without downloading multiple wallets or learning new systems. This improved user experience can significantly reduce the participation threshold and boost the adoption rate of the Bitcoin ecosystem.

Third, RGB++ Layer itself is like Lego, allowing developers to flexibly combine various DeFi protocols and classify assets supporting the UTXO model into a unified liquidity management system. 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, offering a flexible asset issuance and trading mechanism. This universal asset management capability simplifies building and managing complex assets on the UTXO model, greatly expanding its application scenarios.

What can RGB++ Layer do?

After understanding what RGB++ is and its significance to the entire Bitcoin ecosystem, our question is: What can the RGB++ Layer do? Especially for developers and ordinary ecosystem participants, what opportunities are there? Let’s first present Figure 4 and then expand on it in detail.

Figure 4 What RGB++ Layer can do

Asset issuance

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 the RGB++ Layer is unified asset issuance and management. It can easily issue various assets on the blockchain with smart contracts. RGB++ has previously tested asset issuance, but its function was limited to asset issuance only. The liquidity and empowerment of assets were not supported by infrastructure. After the protocol upgrade, developers can more easily issue UTXO common asset types and enhance assets with Defi Lego components, such as cross-chain, trading, staking, lending, providing liquidity, and community governance.

In the RGB++ Layer, issued assets are uniformly abstracted and have Turing-complete programmability. With bridgeless cross-chain and smart contracts, the asset circulation of each UTXO chain is effectively opened up. This offers asset issuers new inspiration. The inspiration for issuing assets in the RGB++ Layer is for the entire UTXO ecosystem, allowing assets to be planned from a broader perspective, user base, and ecological environment.

DeFi Combination

RGB++ Layer has added blockchain browsers and DeFi kits in the update, making composability a necessary foundation for the large-scale adoption of Bitcoin DeFi. In the first disclosed UTXOSwap protocol, the intent-based liquidity market-making solution greatly improves upon 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. Users can use Bitcoin assets such as BTC, CKB, or other new assets issued by the RGB++ Layer as collateral to mint the stablecoin USDPP. ccBTC is a Bitcoin derivative jointly launched by the CKB Ecological Fund, Meson Finance, and CrossChain Token. It is issued on the CKB mainnet and anchored 1:1.

The improvement of these infrastructures can make the 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. Examples include a UTXO lending platform, cross-chain NFT market, privacy trading platform, and more, providing diversified financial services for ecological users.

Asset Management

With RGB++ Layer, we can uniformly manage all UTXO protocol assets and new Bitcoin layer protocol assets such as Runes, BRC20, etc. These assets include not only Coins (FT) but also various DOBs (NFTs). With the support of a unified protocol and liquidity incentives, multiple forms and assets will be connected. Some can be exchanged through bridgeless cross-chain transactions or Swap, while others can be directly exchanged through Dex.

Management also aims to improve efficiency, especially asset efficiency. Users can use the payment tools on RGB++ Layer for fast, 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 like BTC, CKB, BSV, BCH, etc. Users can seamlessly exchange assets from different blockchains using this service.

RGB++ Layer has the potential to integrate the ecological assets of the vast UTXO model, eventually forming an asset management service with a smooth user experience, ample liquidity, and extremely high asset efficiency in this ecosystem.

What wealth opportunities will RGB++ Layer launch?

Leading assets

The best opportunity for an ecosystem to grow must include leading assets. These assets have high recognition and a broad user base. When funds enter the ecosystem, large investments will first go into these leading assets. Among them, CKB is the most important.

The core foundation of the RGB++ Layer is built on the CKB ecosystem. As applications increase, CKB tokens will undergo significant changes not only in supply but also in circulation. With more ecological projects and the rapid development of assets like DOBs, the occupancy rate of CKB Cells will rise sharply, directly affecting the output and occupancy ratio of CKB tokens. Additionally, innovative DeFi combinations will require a large amount of CKB to be locked, pledged, or used for liquidity, reducing the number of circulating CKB tokens. Currently, CKB tokens are the only ones listed on major exchanges, with sufficient liquidity and popularity. If the RGB++ Layer generates a new wave of enthusiasm, CKB will be a prime wealth opportunity.

Besides CKB, attention should be given to Seal, the first asset based on the RGB++ protocol. The community has empowered Seal significantly. UTXOSwap opened the Seal/CKB trading pair immediately, and liquidity incentives have improved Seal’s trading depth. The first Launchpad platform IBO (Initial Bitcoin Offering) in the BTC ecosystem, developed and operated by the Seal community, will launch 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 21 million, and 20% of the shares will be airdropped to Seal’s stakers 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?

Innovative Assets

The best wealth opportunity may always be the next one. New assets can be launched through an asset launch platform. With the help of the RGB++ Layer unified asset protocol, excellent projects from many chains such as BCH, BSV, and Dogecoin can be attracted to launch here.

Only one contract is needed to launch new assets on the RGB++ Layer. Assets can be deployed on multiple chains, and liquidity pools can be shared across chains. Multiple assets can circulate without bridges, making asset issuance simpler and management more efficient.

The DeFi infrastructure projects launched in the first batch of RGB++ Layer are innovative and very noteworthy. The DEX platform UTXOSwap, the stablecoin project Stable++, ccBTC, LST, and other projects all have the potential for coin issuance. You can participate deeply in these projects at a very early stage. Behind these innovative assets are new applications. If you seek relatively stable returns, consider tilting BTC, CKB, and stablecoins towards this ecosystem.

Ecological Positioning

The best wealth opportunity is still entrepreneurship. Developers can start a new business in the vast world of the RGB++ Layer. The CKB Ecological Fund generally provides grants of about $50,000 for ecological projects, with no upper limit 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 continue to improve. Starting a business with the help of the RGB++ Layer is undoubtedly the best choice.

According to observations, the RGB++ Layer will focus on asset issuance and liquidity incentives, allowing developers to concentrate on it. Asset launch platforms (LaunchPad), decentralized exchanges (DEX), cross-chain DOBs trading markets, mortgage lending, stablecoins, liquidity mining such as staking and re-staking, etc., will definitely be the first batch of key support.

Additionally, developer tools and services will be in high demand in the short term. Technical documentation, training, hackathons, bounties, as well as development tools and data dashboards provided to developers, will also be welcomed.

● The project discussed in this document is for research and deduction purposes only and does not constitute any investment advice.

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