Bitcoin Restaking

Bitcoin, with its market cap now reaching an astounding 1 trillion dollars, has positioned itself as a form of digital gold. However, at present, it largely remains an idle asset. Most BTCs lie dormant in users' cold wallets and in various exchanges around the globe, rather than actively participating in blockchain networks or generating benefits for their holders. The potential of Bitcoin, thus, extends far beyond its current use and application.

The goal of the Chakra protocol is to establish a secure Bitcoin Proof-of-Stake system, activating the liquidity of long-term held Bitcoin assets and providing decentralized services maintained by asset holders. As a Bitcoin restaking protocol, it aims to unlock the economic potential of Bitcoin for its holders by leveraging the strongest blockchain network to secure new chains and applications using leading-edge zero-knowledge proof techniques.

The challenge is clear. Bitcoin holders are keen to benefit from staking yields without any compromise on their BTCs' security.

How Chakra works

Chakra stands up to solve this problem. With the Chakra protocol, Bitcoin holders can enjoy multiple yields without fretting over restaking security issues.

What makes the Chakra Protocol unique for Bitcoin restaking?

Self-custodian staking

Bitcoin enthusiasts trust in Bitcoin due to its highly decentralized nature and robust security. Consequently, the idea of compromising security to gain staking yield may be a significant concern. Our solution allows Bitcoin holders to engage in staking without transferring assets out of their own wallets. This is achieved using time-lock scripts, ensuring there's no third-party risk involved.

ZK-based staking proofs

In our solution, Bitcoin's staking events are proven through zero-knowledge proofs, which can be verified off-chain for accessing on-chain information without the need to connect to the Bitcoin network. We will utilize STARKs to implement the proving system. Compared to SNARKs, STARKs offer a zero-knowledge proof solution devoid of the need for a trusted setup, while their mechanism ensures enhanced security.

Restaking services

Staking proofs can be verified in various places, granting stakers multiple rights and providing a spectrum of services maintained by the stakers. Each right or service can be tailored to meet a specific demand, such as AI, DeFi, gaming and more, all facilitated and secured by Bitcoin holders. Bitcoin holders only need to stake once and then they are authorized to scale Bitcoin in many aspects.

Applications of Chakra

The Chakra protocol enables a multitude of Bitcoin applications, leveraging Bitcoin's robust security while unlocking the liquidity of Bitcoin assets.

Bootstraping new Bitcoin layer-2s

Staking proofs can be verified on Bitcoin layer-2s to allow stakers to participate in the layer-2s' consensus and governance. These layer-2s share the security of Bitcoin, providing data availability services and execution environments maintained by stakers. For instance, we can launch a staker-maintained Bitcoin layer-2 running with Cairo VM.

Bringing various yields to stakers

Staking proofs can be utilized to create derivatives of Bitcoin assets, opening up opportunities for users to use Bitcoin-backed assets in DeFi protocols. For example, similar to the stETH in Ethereum ecosystem, we can leverage the Chakra protocol to issue stBTC and build DApps to interact with it.

What's Next

We invite you to stick around for more exciting updates. In Satoshi we trust.