Rebar Labs is planning to introduce the first Bitcoin-native platform by the end of 2024 to safeguard traders from maximum extractable value (MEV) strategies like front-running, according to CEO Alex Luce in an interview with Cointelegraph.
The emergence of Bitcoin’s native decentralized exchanges (DEXs) and layer-2 (L2) scaling solutions has revitalized the oldest blockchain network but has also brought new risks for traders, including malicious MEV. Luce mentioned that front-running is a common example of MEV in Bitcoin.
Rebar’s Shield could be comparable to Ethereum’s Flashbots, which has shielded around $43 billion in DEX transactions from MEV since 2021, as per Dune Analytics. Shield is designed to protect traders from harmful MEV while enhancing interoperability across Bitcoin’s fragmented DEX ecosystem.
Additionally, Shield aims to enhance returns for Bitcoin (BTC) miners by collaborating with major players in the industry and launching with a substantial amount of hashrate from the Bitcoin network.
Bitcoin, initially a basic peer-to-peer payment protocol, evolved with the 2021 Taproot upgrade to support more complex activities such as creating and trading tokens, including non-fungible tokens (NFTs).
Bitcoin-native decentralized finance is still in its early stages and primarily caters to crypto-native traders. Luce noted that the current user base is small, but growth is expected in the coming months.
Meanwhile, Bitcoin-native L2 solutions like Babylon, Core Chain, Rootstock, and Stacks are gaining momentum. Data from DefiLlama shows that the total value locked in Bitcoin’s L2s is around $2 billion as of October 18.
Luce believes that if traders cannot achieve optimal execution on Bitcoin in the next year, they may shift to L2 solutions. He emphasized the potential of Bitcoin as a strong market and hopes to capitalize on its opportunities.
SOURCE