DeFi

Stablecoin Issuance

Having a metalayer like Surge would enable scalable and cost-efficient issuance of stablecoins directly on Bitcoin, leveraging its decentralized security while enhancing throughput. By utilizing zkProof-based rollups, stablecoin issuers can create, transfer, and redeem tokens at a fraction of the typical transaction cost, ensuring fast and seamless transfers. This allows stablecoins to benefit from Bitcoin’s liquidity and trust while operating with the efficiency of a Layer 2 solution.

Market-Making on Bitcoin

By abstracting the data-storage and compute off of L1, a metalayer like Surge can facilitate extremely high-frequency trading and market-making activities by significantly reducing transaction costs and increasing the speed of order execution. Traditional market makers can set up on Surge’s decentralized infrastructure to provide liquidity in DeFi protocols, using Bitcoin as the underlying asset. With zkRollups, multiple trades can be batched and settled on-chain at minimal cost, reducing the barriers to entry for market-makers.

Liquid Staking Tokens (LST) / Liquid Reward Tokens (LRT)

Surge can enhance the scalability of LST/LRT protocols by allowing stakers to participate in DeFi while reducing the costs associated with staking and redeeming tokens. Stakers can mint Liquid Staking Tokens on Surge with reduced fees, enabling higher participation rates in decentralized staking pools.

Decentralized Insurance

Decentralized insurance protocols built on Surge could offer cheaper, scalable coverage for users seeking protection against various risks, such as smart contract exploits, natural disasters, or other financial losses. Surge’s zkRollups ensure that policy claims, premiums, and payouts are handled efficiently while maintaining Bitcoin’s security.

Asset Management and Index Funds

Surge can provide the infrastructure for decentralized asset management platforms where users can create, manage, and trade tokenized index funds or portfolios. By lowering the cost of asset transfers and increasing throughput, Surge enables fund managers to efficiently rebalance portfolios and distribute rewards to investors.