Dear Investors,
We've closed $750k in fresh capital, bringing our total capital raised to $1.75Mn. Our most recent backer is Waterdrip Capital, a team of Bitcoin mining experts.
In this update, I want to highlight an important milestone in the development of DLC.Link.
One regulatory concern we've faced centers around the role of the Protocol Wallet, which serves as the counterparty and administrator to each Discreet Log Contract (DLC).
Originally, if a DLC were to close, leading to fund transfers to the counterparty, we would receive the user's Bitcoin.
This would categorize us as a money transmitter, necessitating a Money Transmitter License.
We've resolved this issue with a new design. Each DLC now includes a separate liquidation payout address.
This allows liquidated Bitcoin to be sent to any third-party address, such as a custodian or a multisig script like P2SH.
The new architecture ensures we do not receive user Bitcoin, significantly reducing regulatory risk.
This design removes our most significant obstacle, allowing us to proceed with platform launch in the coming months.
Overview
Nadav Kohen, co-creator of the DLC specification and a pivotal figure in shaping the understanding of DLCs, has joined DLC.Link as a Technical Advisor.
He is a mathematician and cryptographer by training, and his deep understanding of DLCs will help us evolve our feature set to better service our customers
Security audits with CoinFabrik have commenced and are on track to conclude by mid-October
Sales and Business Development
As of today, our sales pipeline includes 72 deals in Needs Analysis, 27 in Perception Analysis and 7 in Proposal/Quote stage
dlcBTC has begun collaborating with Maple Finance to enable Bitcoin lending via DLCs. Maple has made an initial offer to lend USDC/USDT at 10% interest rate for overcollateralized, non-rehypothecated loans on Bitcoin
We are in production with Leather wallet (formerly Hiro) and in testnet with Xverse. Between these two alone, DLC.Link will be able to serve an audience of over 170,000 users.
Marketing and PR
Our latest video explains how DLCs secure Bitcoin on-chain without the need for validators, avoiding the pitfalls of bridges and other wrapped tokens. See: https://www.youtube.com/watch?v=nSOmBWkPNko
We have also published a new article on "How do DLCs Utilize Schnorr Signatures?" providing insights into this essential aspect of our technology. Read it here: https://www.dlc.link/blog/how-do-dlcs-utilize-schnorr-signatures
Check out the Media section on our website! This section contains blog posts, case studies, videos and a newsroom where we highlight PR features. See: https://www.dlcbtc.com/media
We invite all investors to join our Telegram community at English: https://t.me/dlcbtc
For native Mandarin speakers, you can join our Chinese community at https://t.me/dlcbtc_cn
Follow us on Twitter at https://x.com/dlcBTC
Testimonials
A few recent quotes from our fans:
"We see dlcBTC as a foundational building block in DeFi, with the potential to become a multi-billion-dollar business. " — Nicole Liu, Comma 3 Ventures
“dlcBTC is becoming Layer Zero within the Bitcoin Ecosystem” – Kathy Zhu, Old Fashion Research
"dlcBTC is making Bitcoin more composable & usable in DeFi" – Oliver Birch, Global Head, Chainlink BUILD Program
"You're sovereign Bitcoin for everything else” – Leading Bitcoin Investment Fund
Product
By incorporating a separate liquidation payout address into each Discreet Log Contract, we've ensured that user Bitcoin is never transferred to us, thereby likely circumventing the requirement for a Money Transmitter License
After some delays due to paperwork requirements, Tibo at CryptoGarage has begun working on enhancing the general rust-dlc library to include support for ordinals.
This will also enable advanced trading and lending of other sat-based assets, such as the new Rune tokens. Ordinals support is likely slated for Nov or Dec
Our Leather wallet integration is live! Read more here: https://twitter.com/LeatherBTC/status/1684616932388204544
Alpha Attestation Network Launched: We’ve hit our Q3 milestone of having a multi-attestor system working in testnet with at least 3 nodes
Finance and Fundraising
We have been admitted to the renowned 2023/24 CDL-Montreal Blockchain/Web3 cohort at Creative Destruction Lab (CDL), a Canadian accelerator closely affiliated with universities and industry experts.
I’m a former graduate of CDL as I had participated with my last startup, MarketMuse
How You Can Help
Please refer me to DeFi and CeFi teams that are looking to safely utilize Bitcoin on Ethereum, Stacks and other chains.
Best,
Aki
PS – Missed any of our previous Investor Updates? Read past editions here: https://bit.ly/dlc-link-investor-updates
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