2024 is a year of explosive energy for Bitcoin. On a macro level, not only has the BTC ETF been approved, but inscriptions, Memes, and L2 developments on the application side have also given Bitcoin a new ecological characteristic:

Bitcoin holders are no longer limited to just holding but can now actively participate in staking, lending, and other on-chain DeFi activities. BTCFi is widely regarded as the hottest track with the most growth potential in this cycle. Therefore, how to better utilize the underlying infrastructure of the Bitcoin ecosystem to activate the trillion-dollar BTC assets that are dormant in the Bitcoin ecosystem has become a key issue that BTCFi development needs to focus on.

In this context, the emergence of Pell Network is particularly timely: as the first universal security network built on Bitcoin re-staking, Pell Network aims to help all AVS share Bitcoin’s strong security foundation, becoming a powerful driving force for the prosperity of BTCFi.

Since its pre-launch announcement, Pell Network’s performance has been remarkable, with TVL breaking $200 million within just three weeks and the number of independent addresses reaching 410,000. It is reported that the project has received millions of dollars in financing.

The impressive growth data not only confirms the market’s enormous enthusiasm for BTCFi but also stimulates the community’s deeper desire to explore Pell Network. With the launch of BNB Chain Campaigns, Bitlayer Mining Festival, and the upcoming testnet, it is foreseeable that Pell Network will attract more enthusiastic participation from community members.

By looking at the data behind the growth drivers, this article will explore the project’s potential and the future development of the Bitcoin ecosystem from the perspectives of BTCFi’s significant growth prospects, the importance and necessity of AVS sharing Bitcoin’s strong security foundation, and Pell Network’s operational logic.

BTC-enhanced EigenLayer: Pell Network Builds AVS Network Based on Bitcoin Re-staking

Simply put, if you understand EigenLayer, you can easily grasp the basic principles of Pell Network.

We know that Ethereum’s transition from PoW to PoS ushered in the Ethereum staking era, and EigenLayer is a re-staking protocol based on Ethereum. It allows ETH that is already staked on the Ethereum network to be re-staked to enhance network security. Active Validation Services (AVS) can utilize these staked assets to share Ethereum’s security foundation.

AVS aims to provide Web3 trust guarantees for any computation. Often, we can simply compare AVS to “middleware,” as AVS exists in various forms, such as data availability layers, shared sequencers, and oracle networks. EigenLayer allows AVS to better support dApps, including DeFi and gaming, thereby promoting ecosystem prosperity. Participants in staking can earn additional rewards. This process not only reduces the startup costs of new blockchain protocols and enhances the overall network’s resistance to attacks but also improves capital efficiency.

In Pell Network: users stake BTC assets, and these staked assets will provide the strongest Bitcoin-based security for AVS. dApps requiring AVS services will receive higher quality services, thus creating more innovative and better-experienced products. AVS participants, node operators, the Pell protocol, and users providing staked BTC will all receive reward incentives.

Unlike EigenLayer, which focuses on the Ethereum ecosystem, Pell Network aims to build an omnichain AVS network, transmitting Bitcoin’s strongest security to the entire industry ecosystem.

The core tenet of the omnichain vision is to break down barriers between chains. Pell Network uses technologies like cross-chain atomic communication and ZK-Rollup to build an omnichain relay network. It consolidates BTC and its LSD liquidity assets scattered across various Layer2s into a unified Pell Network ledger. This resolves the issues of BTC liquidity fragmentation and ecosystem isolation, thereby achieving a decentralized governance AVS service network. This network enables Bitcoin to participate in the security verification of a wide range of decentralized ecosystem applications, expanding revenue scenarios.

In other words, as the Bitcoin re-staking track develops, BTC enters a nested mode, but no matter how it’s played, users always hold a “certificate” linked to the principal. Besides native BTC, Pell Network also aims to provide a “final destination” for all certificates, accepting them all to integrate fragmented liquidity as much as possible and injecting a solid foundation into a universal security layer supported by BTC.

Pell Network supports multiple asset staking options:

• Native Re-Staking: Validators can re-stake their BTC by directing their withdrawal credentials to Pell Network contracts.
• LSD Re-Staking: Deposit LSD into Pell Network smart contracts.
• BTC LP Re-Staking: Validators stake a pair of LP tokens that include BTC.
• LSD LP Re-Staking: Validators stake a pair of LP tokens that include a liquid staking BTC token.

Currently, Pell Network supports networks such as BNB Smart Chain, Bitlayer, MerlinChain, B² Network, BOB, Core DAO, and BEVM, and has established partnerships with protocols including Lorenzo Protocol, Solv Finance, FBTC, and MapProtocol, showcasing a preliminary omnichain landscape.

When the aggregated liquidity forms a strong synergy, Pell Network aims to guide these staked assets to empower the construction of a comprehensive AVS network.

Specifically, the Pell Network ecosystem consists of three main roles: stakers, operators, and developers:

Stakers can choose to directly stake their assets to Pell Network and run nodes, or they can delegate their assets to other agents. The delegated agents are responsible for operating the relevant validation nodes and collecting fees. Both stakers and agents will earn rewards, but non-compliant agents and their stakers will be penalized. Operators are in charge of managing and operating the AVS network, using BTC LSD to enhance network security. Developers focus on designing and adjusting penalty and reward mechanisms for decentralized systems to ensure the network runs securely and orderly.

To maximize the use of staked assets for supporting AVS and to alleviate concerns regarding whether AVS’s expected revenue can cover the operators’ operating costs and whether operators have sufficient computational resources to participate in AVS validation, Pell Network has ingeniously designed a layered AVS structure.

Specifically, Pell Network’s AVS is divided into two types:

Large-scale AVS: The total computational workload of large-scale AVS is evenly distributed across all participating operator nodes. For example, in a large-scale data availability protocol, data is divided into N blocks, each block size is 2/N of the original data, making the total cost of storing data comparable to the cost if it were stored by only two nodes. This way, not only is the data processing demand on each node potentially low, but the entire system can achieve high throughput by aggregating the performance of multiple nodes, thus achieving a higher degree of decentralization.

Lightweight AVS: Lightweight AVS aims to solve many tasks that require repeated execution but are very low cost, such as verifying certain information using lightweight clients or verifying zero-knowledge proofs. These tasks have low computational demands and infrastructure requirements, making them suitable for running on Pell Network.

Based on this layered design, AVS can construct different AVS according to their own capabilities and needs, ensuring that even individually operated validators can gain substantial economic benefits from Pell Network, and larger-scale participation can effectively mitigate concerns about staking centralization. Pell Network has successfully attracted over seven well-known node operators to sign intentions of cooperation. With the upcoming testnet activities, Pell Network will attract more node operators and AVS to register and join.

Thus, Pell Network’s concept and solution for constructing a cross-chain ecological consensus layer by releasing Bitcoin’s strong security is clearly articulated. From product architecture design to multi-stakeholder benefits, Pell’s ingenious design provides the project with a unique position in both re-staking and security sharing fields, and these advantages are deeply rooted in Pell Network’s understanding of the ecosystem landscape.

Sharing Bitcoin’s Strong Security Foundation: Pell’s Uniqueness and Necessity

As we all know, security is the foundational guarantee for the establishment and prosperity of an ecosystem. However, constructing a robust security foundation is by no means an easy task for most projects and practitioners:

Some projects choose to build an entirely new trust network, but this method of reconstructing the consensus mechanism not only further fragments consensus but also makes the process of continually enhancing decentralization both high-cost and long-term. Other projects opt to build on mature blockchains like L1 or L2 to share their security, but this approach also has a series of issues, such as high development costs and the need to sacrifice some flexibility and autonomy to adhere to the governance rules of these chains.

As the founding pillar of the crypto industry, Bitcoin boasts the strongest security: it not only has a mature and stable consensus mechanism but also has the widest adoption and recognition globally, with a market cap exceeding $1.3 trillion. The broader adoption brought by decentralization further increases the cost for attackers to control the network. If more projects could share Bitcoin’s rock-solid security foundation, developers could focus more on innovation and feature expansion, thus further promoting the prosperity of the on-chain ecosystem.

So, how can we unlock the immense value of this “strongest security”? The concept of empowering AVS proposed by Eigenlayer for Ethereum, considered the “second safest” in the crypto industry, has successfully provided entrepreneurs with a reference point. However, successful experiences are meant to be referenced, not copied, and this applies equally to building a BTC version of Eigenlayer:

On one hand, Eigenlayer’s operational approach, based on the Ethereum ecosystem, tends to serve the Ethereum ecosystem. For non-Ethereum ecosystems, Eigenlayer will face multiple challenges such as cross-chain staking, slashing, and governance.

On the other hand, if the goal is to share Bitcoin’s strongest security, using Bitcoin as the staked asset is undoubtedly the most natural choice. This approach helps strengthen the recognition of this mechanism among Bitcoin enthusiasts, and Bitcoin’s volatility is significantly lower than that of most PoS assets, largely avoiding the risk of providing attack opportunities to attackers due to the sharp decline in asset value on some PoS chains. This makes the security-sharing solution using Bitcoin as the staked asset more attractive.

However, a crucial issue is that Bitcoin’s PoW consensus mechanism itself does not have the staking yield capability. Previous yield solutions built around BTC often adopted wrapping, CeDeFi, cross-chain bridges, etc., which to some extent involve trust assumptions. For example, WBTC requires trust in a single entity, and BTC on sidechains often requires trust in multi-signature committees, thus not truly sharing Bitcoin’s security foundation.

The turning point came with the emergence of Babylon: Babylon uses staked BTC to help protect PoS chains and verify on-chain transactions, while PoS chains provide security yields for Babylon and BTC holders. This innovation achieves native PoS risk-free yield for BTC, laying a more solid foundation for implementing a security-sharing solution using Bitcoin as the staked asset. However, there is still an unavoidable gap for supporting the construction of large-scale AVS:

Babylon mainly serves PoS chains, especially those in the Cosmos ecosystem, because the Bitcoin timestamp service needs to transmit messages between the Babylon chain and Cosmos chains via the IBC protocol, thus having significant limitations. Babylon cannot be fully utilized by large-scale lightweight AVS to gain security, and therefore cannot serve as a universal AVS solution.

Babylon makes unstakable BTC stakable, completing the leap from 0 to 1. But how can we make the entire industry share Bitcoin’s powerful security foundation to achieve BTCFi’s explosion from 1 to 10 or even 100? Pell Network aims to build the first universal security network based on Bitcoin re-staking, empowering the entire industry’s AVS to share Bitcoin’s powerful security foundation. With this solid foundation, users, AVS, the Bitcoin ecosystem, and even the entire industry ecosystem will benefit.

AVS Strengthens Ecosystem Foundation, Fueling the BTCFi Summer Boom

The value of a healthy ecosystem lies not only in the benefits it provides to all participants but also in its ability to accumulate momentum for the long-term development of the industry. Pell Network, with its universal security network built on Bitcoin re-staking, is a prime example.

For users, the appeal of participating in Pell Network lies in earning points and actively contributing to the security foundation of the entire industry, which could potentially offer more significant rewards.

On one hand, by participating in Pell Network staking, users can earn points. These points not only acknowledge user participation but will also be closely tied to Pell Network’s token airdrops, providing additional value to users.

On the other hand, staking participants create a robust security foundation that empowers AVS to deliver better services, thereby facilitating safer and more efficient dApp operations. The revenue generated from these upper-layer applications will be shared with stakers based on a set mechanism. The success of a particular dApp can bring substantial hidden rewards to users, and as the dApp’s user base and transactions grow, stakers’ earnings will also increase.

For AVS, Pell Network offers a low-threshold and solid security foundation, allowing developers to focus more on implementing business logic without worrying about the underlying security architecture.

More importantly, Pell Network achieves cross-chain interoperability from its foundational design and technology, enabling AVS to be deployed across multiple chains with a single development effort. This makes Pell Network fertile ground for the birth of various new AVS and provides more comprehensive infrastructure for the omnichain ecosystem.

For example, Pell Network can quickly build an economically secure oracle network, allowing developers to focus on data processing and delivery without the need to construct an independent AVS layer. With Pell Network’s security infrastructure, oracle networks can operate more efficiently and reliably, ensuring data accuracy and timeliness.

Another example is utilizing Pell Network’s re-staking mechanism and community power to build a high-efficiency, low-cost large-scale data availability layer, providing robust data support for various dApps and ensuring data accessibility and integrity.

Additionally, based on Pell Network’s messaging mechanism, constructing a light client cross-chain bridge becomes very easy. Stakers can verify cross-chain signatures off-chain, and if challenge events prove discrepancies, validators in Pell Network will be penalized in slow mode (non-optimistic mode). This mechanism effectively ensures the safety and reliability of cross-chain operations.

Other AVS scenarios include ultra-low latency application chains, privacy DeFi protocols, blockchain games, Web3 AI applications, and RWA tracks. Through these application scenarios, Pell Network aims to provide more diversified and efficient services for the blockchain ecosystem, promoting the industry’s development and innovation.

The emergence of various new active validation services (AVS) based on Pell Network can further supplement the long-missing ecological infrastructure in the Bitcoin ecosystem, better promoting the development of BTCFi.

For the Bitcoin ecosystem, Pell Network’s cross-chain interoperability is a significant breakthrough. Through seamless connections with other blockchain networks, Bitcoin can flow more efficiently across different chains, no longer limited to single-chain applications but playing a role in a broader blockchain ecosystem, achieving efficient asset allocation and utilization.

Secondly, the AVS network built by Pell Network truly shares Bitcoin’s security foundation. This security guarantee not only enhances user trust in the Bitcoin ecosystem but also creates a favorable environment for Layer 2 solutions and dApp development. Developers can focus on product innovation and user experience improvement, and better products and services will attract more new users. This virtuous cycle further drives the growth of the Bitcoin ecosystem.

Beyond the Bitcoin ecosystem, the omnichain attribute of AVS benefits developers of applications in other ecosystems. A security layer based on Bitcoin is more robust than any other security foundation. By achieving omnichain sharing of Bitcoin’s security foundation, Pell Network creates a more reliable and efficient environment for industry developers. Developers can also concentrate more on product innovation and user experience, launching high-quality products in a shorter time, thus accelerating market response.

With the widespread application of AVS services, the on-chain ecosystem will experience unprecedented prosperity. Developers can use a strong security foundation to build various new applications. These innovative applications not only enrich the diversity of the blockchain ecosystem but also attract more users and capital into this field, driving the rapid development and maturation of the entire ecosystem.

$300 Billion Growth Opportunity: How to Participate in Pell Network?

As an enhanced version of BTC EigenLayer, Pell Network has immense development potential and opportunities. Firstly, in terms of financial scale, Ethereum’s market cap is around $400 billion, whereas Bitcoin’s market cap reaches $1.5 trillion. Bitcoin’s longstanding dominance in the market also indicates its more promising ecosystem expansion potential.

Further analysis shows that the ETHFi market is approximately $80 billion. If we simply extrapolate this proportion, the BTCFi market could potentially reach $300 billion. This enormous expected market size not only showcases BTCFi’s vast potential but also suggests that Pell Network, as a crucial force driving BTCFi’s prosperity, has rich opportunities and a broad market space.

It is worth noting that EigenLayer mainly focuses on the Ethereum ecosystem. In contrast, Pell Network has the advantage of generality and cross-chain capabilities, meaning Pell Network can support a wider range of application scenarios from a cross-chain perspective. This wider service range gives Pell Network stronger potential in future development. Consequently, many community members believe that holding Pell Network tokens has promising returns.

So, how can one participate in Pell Network more effectively to accumulate tokens?

First and foremost, the most unmissable aspect is the points system.

In the absence of an official token release, Pell Network’s ecosystem rewards are presented in the form of points. The Pell points plan targets a TVL (Total Value Locked) of $10 billion. During this period, users can earn basic points by completing tasks such as following Pell on Twitter, joining Discord and Telegram, making an initial deposit of over 0.001 BTC, and staking over 0.01 BTC for 14 consecutive days. Additionally, participating in the Bitlayer mining festival, staking in ecosystem partner projects, and inviting friends will earn users additional points.

In a previous Bitlayer Mining Festival event, Pell Network, as a partner project, offered rewards worth $3.75 million to users who participated in interactions and staking. These rewards included 30,000 Pell points and 1.5x permanent point cards, which attracted widespread community enthusiasm.

As a regular marketing strategy, points will not only be linked to future airdrops but also represent a series of ecosystem benefits. In the absence of a token release, earning more points is akin to holding more tokens.

Furthermore, Pell Network’s two major incentive activities are currently in full swing, offering users the opportunity to win generous rewards.

One of the activities is a collaboration between Pell Network, BNB Chain, and over 15 high-quality projects within its ecosystem, titled “TRAIN LIKE A CHAMPION”:

This event aims to celebrate the opening of the 2024 Summer Olympics, running from July 24, 2024, to August 14, 2024. Participants can earn points by connecting their wallets, minting AI NFTs, and completing project tasks. The top 5000 point earners will have a chance to share a prize pool of $250,000, and users with over 500 points can enter a lucky draw for a prize pool worth $100,000. The event has already attracted over 10,000 participants.

Specifically, participants need to join the Pell Network Discord #bnb-code channel and input the command “!bnb” to obtain an event code. They then enter this code on the Pell page to complete the binding.

After binding the referral code, participants can earn event points and mint a Pell Champion NFT by re-staking at least 0.0001 BTCB (BounceBit), 0.0001 solvBTC (SolvBTC), and 0.0001 stBTC (Lorenzo) on Pell.

Click here to learn more about BNB Chain Campaigns

The second major event is the revenue carnival jointly organized by Pell Network, Bitlayer and Bedrock. The event runs from July 25 to August 25. During the event, users have two ways to participate.

The first method: choose to enter Bedrock’s Minting page, select the Bitlayer chain and use WBTC/BTC to mint uniBTC, and then stake uniBTC to Pell;

The second method: Enter the Pell’s Stake page, select the Bitlayer chain, and stake WBTC/BTC to the Pell Network. Pell will cooperate with Bedrock to mint an equal amount of uniBTC for you and deposit it into Pell’s restaking Vault. After Babylon is launched, Bedrock will stake BTC to Babylon and earn Babylon staking rewards for you.

Users who participate in this event will receive multiple rewards such as Bitlayer points, Bedrock diamonds, Pell points and future Babylon staking income. In addition, Giveaway activities will be carried out on social media during the event. Interested users can follow Pell’s official Twitter to get timely information. More information.

Click here for more details on the Earnings Carnival event

The simultaneous launch of multiple activities aims to provide users with diversified returns through a vibrant and active ecosystem, guiding users to further explore the specific gameplay of the ecosystem. Additionally, it is worth noting that according to the roadmap released by Pell Network, the Pell testnet will officially launch in early August. At that time, Pell Network will open registration for AVS and introduce a series of incentive measures to encourage large-scale participation. Pell Network will also take this opportunity to test its applications and services, continuously improving and optimizing its project.

Apart from the testnet, more milestones for Pell Network are being methodically advanced.

In August, Pell Network will launch an ecosystem builder incentive plan to encourage more developers to join and participate in the ecosystem’s construction. Additionally, it will establish an AVS Technical Committee and a Node Operators Management Committee to further implement the AVS network.

In September, Pell Network will focus on launching its mainnet and releasing its token economic model. At that time, it will also expand the coverage of AVS to fields such as AI, DePIN, and RWA.

In the last quarter of 2024, Pell Network will focus on enhancing Pell’s decentralization and modularity, and integrating with Babylon’s timestamp service and native BTC staking functionality.

Conclusion

For a long time, BTCFi users have held large amounts of Bitcoin, but due to a lack of efficient utilization methods like those found in Ethereum, most Bitcoin assets remain in cold wallets. This has led to a common consensus that the BTCFi sector has not yet been fully developed.

Based on this, if we can better utilize Bitcoin’s underlying infrastructure to provide users with returns while ensuring the security of the underlying assets, BTCFi will experience explosive growth, potentially surpassing the historical peak levels of the Ethereum ecosystem.

Standing on this trillion-dollar market, Pell Network’s solution is not limited to building a specific product but rather establishing a decentralized trust free market. On one hand, it offers diversified staking options and re-staking mechanisms, enhancing the economic and security utility of the Bitcoin network. On the other hand, it supports the construction of lightweight and large-scale decentralized components, providing cost-effective solutions for the security of Bitcoin ecosystem infrastructure and applications. This not only drives exponential growth in the Bitcoin ecosystem but also allows the entire industry to share Bitcoin’s security foundation through the Pell Network AVS network, further unlocking on-chain innovation possibilities.

Although the Pell Network mainnet has not yet launched and its future performance remains to be seen, its pre-launch performance—achieving a TVL of $1.9 billion and 360,000 unique addresses in just three weeks—has already demonstrated its leading market position. With the upcoming testnet activities, multi-chain expansions, and BNB Chain Campaigns, we look forward to more exciting developments from Pell Network in the future.

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