Helios Finance
  • Introduction
    • Problem - Solution
    • How Helios Differs from Other Protocols
    • Summary of Capabilities
  • Quickstart
    • Installing Leather Wallet
    • Add MIDL regtest on Leather
    • Get test tokens from faucet
    • Experience the new BTC Defi
  • Architecture
    • Overview
      • Helios & MIDL Architecture Overview
      • MIDL Validator Network (DPoS Consensus Layer)
      • Threshold Signature Scheme
      • Lending Logic Layer by Helios
      • Roles and Responsibilities Summary
    • Bitcoin-Native Smart Contracts
    • Bitcoin Settlement Flow and One-Step Transactions
    • Bitcoin Settlement & Finality
  • Core Concepts
    • Overview
    • BTC-Native Liquidity, Expanded Asset Support
      • Interest Mechanics
      • Supported Assets
    • Partial Collateral Swap (Flexible Position Management)
  • Risk Framework
    • Overview
    • Adaptive Risk Optimization (Mempool- & Volatility-Aware LTVs)
      • More on Adaptive Risk Engine
    • Liquidation Mechanics
  • Capital Efficiency and Use Cases
    • Overview
    • Delta-Neutral Yield Strategies
    • Enhanced Yield for Bitcoin Holders
    • Arbitrage and Market Efficiency
    • Tax-Optimized Borrowing
  • Institutional Compliance and Security
    • Overview
    • KYC-Ready Architecture and Permissioned Pools
      • More on Dual-Layer Market
    • AML, Monitoring, and Auditability
    • Regulatory Alignment (MiCA, BIS/IOSCO, etc.)
  • For Developers
    • Overview
    • Interest Rate Model
    • Supply & Borrow Interest
    • Functions
      • Common Functions
      • Supply & Withdraw
      • Borrow & Repay & Liquidate
      • Flashloan
    • SDK Release Plan
    • Smart Contract Interface via MIDL (EVM on Bitcoin)
    • Transaction Fees
  • Oracles and Price Feeds
  • Running a Liquidator or Integration with Exchanges
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  • Supply Side - Earn yield in raw BTC
  • Borrow Side - Leverage or get access to liquidity
  • Native Architecture
  1. Core Concepts

BTC-Native Liquidity, Expanded Asset Support

Helios is first and foremost a Bitcoin-native lending market. Every loan is originated, risk-managed, and settled on Bitcoin mainnet; no wrapped coins or cross-chain bridges are involved. Yet the platform is flexible enough to support a broader universe of Bitcoin-resident assets, giving users more ways to earn yield or unlock liquidity.

Supply Side - Earn yield in raw BTC

  • Pure BTC deposits Lenders can contribute satoshis directly to the protocol and accrue interest denominated and paid out in BTC, compounded every block.

  • Additional Bitcoin-based collateral If an asset is issued natively on Bitcoin—whether as a Taproot Asset (e.g., USDT on the Taproot Assets protocol), a Runes or RGB token, or an ERC-20 deployed on MIDL whose on-chain metadata auto-mints a Runes twin—it can be whitelisted for supply. Interest is always collected in the same native unit, without leaving the Bitcoin security model.

Borrow Side - Leverage or get access to liquidity

  • BTC-secured borrowing Users can post BTC as collateral to borrow additional BTC for trading, hedging, or yield strategies.

  • Stablecoin & token borrowing The same BTC collateral can unlock Bitcoin-resident stable-value assets (e.g., Taproot Assets USDT) or other natively issued tokens. All liabilities stay on the base layer, so borrowers never assume bridge or custody risk.

Native Architecture

Traditional money markets on Ethereum rely on wrapped BTC (WBTC) held by a custodian, importing counter-party and bridge risk. Helios removes that layer entirely:

  • Deposited BTC never leaves Bitcoin; it resides in TSS vaults controlled by an on-chain validator quorum.

  • Non-BTC assets circulate via Bitcoin’s Taproot, Runes, or RGB frameworks, keeping every UTXO under Bitcoin consensus rules.

This structure channels Bitcoin’s vast, otherwise-idle balance sheet into productive lending while preserving the chain’s hallmark security and trust-minimization.

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Last updated 1 month ago