The decentralized lending platform Dolomite is launching within the Bitcoin ecosystem through the integration of the EVM-compatible Layer 2 solution Spiderchain from Botanix Labs.
We’re excited to announce that Dolomite is expanding to @BotanixLabs! ?️
The first decentralized EVM L2 on Bitcoin will be the newest home for our next-gen money market protocol, bringing DeFi-native rights to the Bitcoin ecosystem.
⤵️⤵️ pic.twitter.com/tlJOVyJWVx
— Dolomite ?️ (@Dolomite_io) March 27, 2025
The protocol offers money market services and a decentralized exchange. The value locked in Dolomite’s smart contracts exceeds $800 million.
According to the statement, the platform will join existing projects on the Botanix network, such as Chainlink, Ankr, and Graph Protocol, to “help unlock the vast potential of the Bitcoin ecosystem, valued at over $1 trillion, for DeFi applications.”
In December 2024, developers from Botanix Labs launched the Aragog testnet and are on the path to creating the mainnet. The protocol employs innovations like the FROST (Flexible Round-Optimized Schnorr Threshold) cryptographic signature. This is a type of multisig technology that combines shares from multiple key holders into a single address.
In September 2023, the Spiderchain concept caught the attention of Casa co-founder and CTO Jameson Lopp. The expert generally praised Botanix’s Bitcoin scaling solution, which could open the DeFi space for the first cryptocurrency.
However, Lopp noted several potential risks, including a tendency towards centralization inherent in Proof-of-Stake blockchains.
The network is governed by so-called “orchestrators,” who stake Bitcoin to participate in the consensus mechanism. Unlike traditional sidechains, Spiderchain generates a new multisig wallet for each block with a randomized subset of validators as key holders.
Earlier, ForkLog explored the development of DeFi in 2024 in a special report.