Illustration of RGB++Layer, a wealth opportunity that even beginners can understand

Starting in 2024, the BTC ecosystem has dominated this new narrative. The new infrastructure aimed at BTC expansion, the new assets sloganized against VC, and the new applications missioned to replicate the glory of ETH all constitute the main framework of the new narrative. In the infrastructure zone, BTCLayer2 is repeatedly mentioned and is also a battleground. If only considering solutions based on extending the ‘chain’, then the account model compatible with the EVM virtual machine and the UTXO model similar to BTC have become the two fastest advancing areas.

Figure 1 BTC Expansion Construction Ideas Diagram

The EVM of the account model cannot solve the security issues of BTC native assets temporarily, and it needs to rely on (centralized) Cross-Chain Interaction bridge or asset custody institution to complete asset bridge. However, the solution based on the UTXO model can use bridgeless Cross-Chain Interaction such as homomorphic binding to achieve this function. Recently, RGB++ protocol based on the UTXO model has been technically upgraded and officially launched the RGB++ Layer, which 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 illustrated examples to help you understand this new technology in a simple and easy-to-understand way and explore the wealth password brought by this technology.

What is RGB++ Layer?

RGB++ Layer is an upgrade from RGB++ protocol. Before the upgrade, RGB++ protocol was a coin issuance protocol on the BTC layer, characterized by supporting bridgeless cross-chain interaction and using CKB as its decentralization indexer. This upgrade extends the technical applicability to all networks that support UTXO, such as BSV, BCH, DogeCoin, and other BTC layer assets like Runes, BRC20, etc. Let’s break it down to see which technical modules have been upgraded to serve such long chains and unify highly fragmented assets under a single standard.

Figure 2 RGB++ constitutes the schematic diagram

Just like the Omni Layer, RGB++ Layer utilizes the security of the UTXO model and the robust infrastructure of the Bitcoin blockchain to ensure the security and reliability of all transactions and asset management. RGB++ Layer provides a universal mechanism for asset issuance and management, allowing users to create and manage various digital assets on the RGB++ Layer.

The RGB++ Layer has Smart Contract functionality that is Turing Complete, allowing developers to create and execute complex contract logic. Smart contracts expand the application scope of the UTXO model and provide support for various decentralized applications.

Omni Layer is mainly based on the Bitcoin blockchain, while the bridgeless Cross-Chain Interaction feature of RGB++ Layer further enhances its interoperability and flexibility, allowing on-chain assets such as BTC, CKB, BSV, BCH, etc. to seamlessly operate on RGB++ Layer and interact with more long blockchain networks.

Overall, RGB++ Layer is an independent and versatile UTXO smart Contract Layer, which can provide bridgeless Cross-Chain Interaction and Decentralized Finance infrastructure for the entire UTXO model ecosystem. To achieve this goal, the RGB++ browser and Decentralized Finance infrastructure based on RGB++ Layer will be launched soon. In addition, there are other Decentralized Finance suites, including Stable Coin Stable++, stakeprotocolLST CKB, and so on.

Figure 3 RGB++ Layer Defi Component Diagram

The features of RGB++ Layer are not only for Defi. Although the whole ecosystem is starting to advocate for BitcoinFi, RGB++ Layer has broader value and significance.

First, the RGB++ Layer can greatly enhance the Liquidity and returns of BTC assets. BTC has been expanding for a long time, giving birth to many solutions, each of which is striving to build its own ecosystem. Over time, the diversity of assets is particularly strong, even within the same UTXO model, there is a serious fragmentation. The bridgeless Cross-Chain Interaction feature of the RGB++ Layer allows BTC to interoperate with other UTXO chains (such as CKB, BSV, BCH, etc.), breaking the isolation effect between chains. This will promote cooperation 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 utilized in a wider range of applications, such as stake lending, Liquidity Mining, and Cross-Chain Interaction transactions. This not only enhances the Liquidity of BTC assets, but also provides holders with longer-term profit opportunities, further enhancing the financial attributes of BTC.

Secondly, from a user perspective, RGB++ Layer provides a seamless user experience. Users can seamlessly access and use all protocols and applications that support RGB++ Layer using their existing BTC Wallet, without having to download a bunch of wallets and learn how to use them. This improved user experience can greatly reduce the barrier to entry for users and promote the adoption of the entire BTC ecosystem.

Third, don’t forget, the RGB++ Layer itself is like a Lego that can be combined. Developers can flexibly combine various Defiprotocols and assign assets that support the UTXO model to a unified Liquidity management system. At the same time, RGB++ also has the capability of general asset issuance and management, various assets such as Coin(FT) and DOBs (NFTs) can be uniformly managed, providing flexible asset issuance and trading mechanisms. This general asset management capability makes it more convenient to build and manage complex assets on the UTXO model, greatly expanding the application scenarios of the UTXO model.

What can RGB++ Layer do?

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

What can the RGB++ Layer do in Figure 4

Asset issuance

The characteristic of Block chain projects is asset-first, community-first, and a protocol with fully functional and well-managed asset issuance functionality is essential. The first function of the RGB++ Layer is unified asset issuance and management, which can easily issue various assets on-chain with the help of Smart Contracts. Prior to RGB++, the asset issuance was only limited to asset issuance, and there was no infrastructure support for asset liquidity and empowerment. After the protocol upgrade, developers can more conveniently issue UTXO universal asset types, and empower assets with more diverse operations through DeFi Lego components, such as Cross-Chain Interaction, trading, stake, lending, providing Liquidity, community governance, and so on.

In the RGB++ Layer, the issuance of assets is unified abstracted, with Turing Complete programmability, and with the help of bridgeless Cross-Chain Interaction, Smart Contract, it has actually connected the asset circulation of various UTXO chains. This gives the asset issuer a new inspiration. In the RGB++ Layer, the issuance of assets is aimed at the entire UTXO ecosystem, allowing for planning assets from a larger perspective, user base, and ecological environment.

Decentralized Finance Portfolio

RGB++ Layer has added a blockchain explorer and DeFi suite in the update, making it an essential foundation for the widespread adoption of BTC DeFi. In the UTXO Swap protocol, which was disclosed first, the intent-based Liquidity provision scheme has significant advantages over order book and AMM. With UTXO Swap, users and third-party liquidity providers can provide liquidity for assets and participate in Liquidity Mining.

Stable++ provides essential Stable Coin support for DeFi, and has just received investment from the CKB ecosystem fund. The team plans to develop the first over-collateralization Stable Coin protocol on the RGB++ Layer to serve the BTC ecosystem. In this plan, users can use BTC assets such as BTC, CKB, or other newly issued assets on the RGB++ Layer as collateral to mint Stable Coin USDPP. ccBTC is a BTCDerivatives launched by the CKB ecosystem fund, Meson Finance, and CrossChain Token, issued on the CKB Mainnet and anchored 1:1.

The improvement of these infrastructures can make RGB++ Layer more like a Lego modular Defi component platform. Based on the “UTXO Lego” design, developers can flexibly combine various Decentralized Finance protocols to stimulate innovation, such as UTXO Lending platform, cross-chain NFT market, shielded transaction platform, etc., providing diversified Financial Services for ecosystem users.

Asset Management

With RGB++ Layer, we can manage all UTXO protocol assets, including BTC layer one new protocol assets such as Runes, BRC20, etc. These assets include not only coins (FT), but also various DOBs (NFTs). Under the support of a unified protocol and liquidity incentives, long-form and long assets will be interconnected, some of which can be traded or swapped through bridgeless cross-chain interaction, and some can be directly exchanged through Dex.

Another layer of management is to enhance efficiency, especially asset efficiency. Users can use the payment tools on RGB++ Layer to conduct fast and low-cost payments and Settlement between different blockchains. Developers can utilize RGB++ Layer to build a Cross-Chain Interaction DEX, lending platform, supporting on-chain asset transactions or lending of BTC, CKB, BSV, BCH, and other assets. Users can seamlessly exchange assets on different blockchains through this service.

RGB++ Layer has the potential to integrate the vast UTXO model of ecological assets, and ultimately will form a user experience, smooth Liquidity, abundant, and highly efficient asset management services in this ecology.

What are the wealth opportunities offered by RGB++ Layer?

leading assets

The best opportunity to rise in an ecosystem must not be missed, and leading assets with high recognition and a wide user base will be preferred by large funds when capital flows into the ecosystem. Among these assets, CKB is undoubtedly the most important one.

The core foundation of RGB++ Layer is still built on the CKB ecosystem. With the continuous increase of applications, CKBToken will not only undergo significant changes on the supply side, but also in terms of Circulating Supply. Specifically, as the ecological projects continue to increase, especially the booming development in the form of assets such as DOBs, the occupancy rate of CKB Cells will increase dramatically, which will directly affect the production and occupancy ratio of CKBToken. On the other hand, innovative combinations of Decentralized Finance require a large amount of CKB to be locked, staked, or provided as Liquidity, which will further reduce the amount of circulating CKBTokens. Currently, CKBToken is the only Token listed on top exchanges, with sufficient liquidity and reputation. If RGB++ Layer triggers a new wave of enthusiasm, CKB will definitely be included as the first wealth opportunity.

Apart from CKB, the first asset based on RGB++ protocol, Seal, should be followed. The community has empowered Seal a lot, and UTXOSwap opened the Seal/CKB trading pair as soon as possible. Through Liquidity incentives, Seal’s trading Depth is improving. The first Launchpad platform IBO (Initial Bitcoin Offering) in the BTC ecosystem developed and operated by the Seal community will be launched during the BTC 2024 conference this week. The first Seal to Earn project is Stable++, a UTXO-based over-collateralization stablecoin protocol. The total amount of Stable++ protocolToken is 21M, and 20% of the shares will be airdropped to Seal’s stakers on the IBO platform first.

In terms of DOBs, as the most well-known DOBs asset of RGB++, Nervape NFT is still in a phase of market underestimation. After three years of long 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 broader ecological vision, nor can it generate more long financial gameplay connections. But with the help of RGB++ Layer, there is a great hope to usher in a new round of gameplay upgrades and wealth opportunities.

Another DOBs Unicorn has completed the first round of ‘open charting’, after which the Unicorn obtained DNA. Around the DNA community, long forms of creation can be carried out, such as games, PFP, novels, and even DeFi innovation. Reëm is a PFP project created by the community based on the Unicorn DNA, and it has become the longest minted DOBs in the CKB ecosystem, with the number of holders also ranking in the top three. However, the current Market Cap is extremely low. If it can be assisted by RGB++ Layer to provide more long financial gameplay, Reëm is very likely to reproduce the crazy increase that the Unicorn once had.

Figure 5 RGB++ Layer New Wealth Password?

Innovative Assets

The best wealth opportunity may always be the next one. New assets may be launched through an asset launch platform, attracting excellent projects from other chains such as BCH, BSV, DogeCoin, etc. here, with the help of the RGB++ Layer unified asset protocol.

Issuing new assets on the RGB++ Layer only requires one contract to be deployed on multiple chains, and the issuance assets can also be shared in the Cross-Chain Interaction to support the circulation of various assets without a bridge. This makes the issuance of assets simpler and more efficient to manage.

The Decentralized Finance infrastructure projects launched on the first batch of RGB++ Layers are all innovative assets and worth following. DEX platform UTXOSwap, Stable Coin project Stable++, ccBTC, LST, and other projects all have coin issuance expectations, and it’s possible to participate at a very early stage. Behind these innovative assets are new applications. If you are pursuing relatively stable returns, you can consider allocating BTC, CKB, and Stable Coin to this ecosystem.

Ecological Card Slot

The best wealth opportunity is still entrepreneurship, and developers can create new businesses in the vast world of RGB++ Layer. The CKB Ecological Fund generally provides about 50,000 Grants incentives for ecological projects, and there is no upper limit for important and excellent projects, helping early projects grow. After the establishment of a unified Liquidity market, there will be more professional market makers, custodians, and other service roles, and development tools are also increasingly improved. Undoubtedly, using RGB++ Layer for entrepreneurship is the best choice.

According to observations, RGB++ Layer will focus on asset issuance and Liquidity incentives, so developers can follow these areas closely. Asset launch platform (LaunchPad), Decentralized Exchange (DEX), Cross-Chain Interaction DObS trading market, collateral lending, stablecoins, Liquidity Mining such as stake, re-stake, etc., will definitely be the first batch of key supports.

In addition, developer tools and developer services will also be a field with a very large short-term demand. Technical documents, training, hackathons, bounties, and development tools and data dashboards provided to developers will also be welcomed.

●This article discusses projects for research and deduction purposes only, and does not constitute any investment advice.