2025/07/08 by Oleksandr Kurbatov, Kyrylo Baibula, Kurbatov, Oleksandr +24
Computer Science · Business, Management and Accounting · #Blockchain Technology Applications and Security #FinTech, Crowdfunding, Digital Finance #Cryptography and Data Security
paper · pdf · doi:10.48550/arxiv.2507.06064
This paper presents Wrapless -- a lending protocol that enables the collateralization of bitcoins without requiring a trusted wrapping mechanism. The protocol facilitates a "loan channel" on the Bitcoin blockchain, allowing bitcoins to be locked as collateral for loans issued on any blockchain that supports Turing-complete smart contracts. The protocol is designed in a way that makes it economically irrational for each involved party to manipulate the loan rules. There is still a significant research area to bring the protocol closer to traditional AMM financial instruments.