Wrapless: The trustless lending protocol on top of Bitcoin

Fuente: arXiv
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Main Authors: Kurbatov, Oleksandr, Baibula, Kyrylo, Chopa, Yaroslava, Kozlov, Sergey, Komendant, Oleh, Dovhopolyi, Illia, Kurbatov, Dmitrii, Naumets, Zakhar, Aritkulova, Yuliia, Kravchenko, Pavel, Dubinin, Volodymyr, Antadze, Lasha, Panasenko, Yaroslav, Velykodnyi, Mykhailo
Format: Preprint
Published: 2025
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author Kurbatov, Oleksandr
Baibula, Kyrylo
Chopa, Yaroslava
Kozlov, Sergey
Komendant, Oleh
Dovhopolyi, Illia
Kurbatov, Dmitrii
Naumets, Zakhar
Aritkulova, Yuliia
Kravchenko, Pavel
Dubinin, Volodymyr
Antadze, Lasha
Panasenko, Yaroslav
Velykodnyi, Mykhailo
author_facet Kurbatov, Oleksandr
Baibula, Kyrylo
Chopa, Yaroslava
Kozlov, Sergey
Komendant, Oleh
Dovhopolyi, Illia
Kurbatov, Dmitrii
Naumets, Zakhar
Aritkulova, Yuliia
Kravchenko, Pavel
Dubinin, Volodymyr
Antadze, Lasha
Panasenko, Yaroslav
Velykodnyi, Mykhailo
contents 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.
format Preprint
id arxiv_https___arxiv_org_abs_2507_06064
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Wrapless: The trustless lending protocol on top of Bitcoin
Kurbatov, Oleksandr
Baibula, Kyrylo
Chopa, Yaroslava
Kozlov, Sergey
Komendant, Oleh
Dovhopolyi, Illia
Kurbatov, Dmitrii
Naumets, Zakhar
Aritkulova, Yuliia
Kravchenko, Pavel
Dubinin, Volodymyr
Antadze, Lasha
Panasenko, Yaroslav
Velykodnyi, Mykhailo
Cryptography and Security
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.
title Wrapless: The trustless lending protocol on top of Bitcoin
topic Cryptography and Security
url https://arxiv.org/abs/2507.06064