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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On this page
  • The Problem
  • The Solution — Helios Finance
  • How It Works (Plain English)
  • Why It’s a Game-Changer
  1. Introduction

Problem - Solution

The Problem

1. Idle Bitcoin

More than $1 trillion worth of BTC sits in wallets earning 0 % yield. For long-term holders, the only way to unlock liquidity today is to sell or wrap their coins—both break Bitcoin’s native security guarantees.

2. Risky Work-arounds

Ethereum-style lending apps (e.g., Aave) let you borrow against BTC only after it is converted into Wrapped BTC (WBTC) and moved across a cross-chain bridge. Bridges have been the single biggest point of failure in crypto security, with $2 billion lost to bridge hacks in 2022 alone.

3. Institutional Friction

Regulated funds and treasuries cannot justify bridge or wrapping risk, nor can they tolerate opaque risk models. As a result, most BTC capital remains sidelined—an untapped pool that limits Bitcoin’s role in modern finance.


The Solution — Helios Finance

What Helios Delivers
Why It Matters

Native BTC Lending & Borrowing – lend or borrow against real BTC on Bitcoin mainnet.

No wrapping, no bridges, no extra trust assumptions.

Single-Block Interaction – deposit, borrow, or repay in one Bitcoin block.

Withdraw anytime without waiting, top-tier UX, and no cross-chain risks on Bitcoin.

Adaptive Risk Engine – real-time LTV and liquidation logic that reacts to mempool congestion and price volatility.

Keeps positions safer during network stress and protects lenders’ capital.

Ethereum-like Execution Layer

Smart-contract flexibility without leaving Bitcoin’s settlement layer.

Compliance-Ready Design – transparent on-chain accounting, optional KYC hooks.

Gives institutions verifiable audit trails and future-proofs regulatory alignment.


How It Works (Plain English)

  1. Deposit BTC Send Bitcoin to a Helios vault address secured by a decentralized validator network.

  2. Smart-Contract Logic Executes The smart contract reads your deposit and updates the lending pool instantly—no token wrapping required.

  3. Borrow or Earn Yield

    • Lenders accrue yield in BTC every block.

    • Borrowers draw liquidity in stablecoins or BTC, backed by their collateral.

  4. Risk Managed in Real Time The protocol continually adjusts collateral requirements using on-chain price feeds and mempool data, keeping lenders safe without manual intervention.


Why It’s a Game-Changer

  • For Bitcoin Holders – Put BTC to work without ever giving up self-custody.

  • For Institutions – Access yield and leverage on the world’s most secure blockchain, backed by transparent risk controls.

  • For Developers – Build Bitcoin-native DeFi apps with familiar Solidity-style tooling, minus bridge headaches.

Helios Finance turns Bitcoin from a passive store of value into an active, productive asset—all while honoring the principles that make Bitcoin trusted: security, transparency, and decentralization.

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Last updated 7 days ago