Velar Dharma, the Bitcoin-based Layer-2 trading protocol, says it’s partnering with the popular Bitcoin ecosystem wallet Xverse to enable more seamless digital asset swaps. The collaboration is a major milestone for Velar as it pushes to become a leading force in bringing decentralized finance to the Bitcoin ecosystem and expand the possible use cases for BTC itself.
With the partnership, users of the Xverse wallet will be able to swap BTC in an instant for a host of other digital assets in the wider Bitcoin ecosystem, including tokens like Stacks (STX) and various stablecoins, such as USDh and sBTC.
Velar CEO Mithil Thakore said in an interview that the integration will see swaps powered by Velar Dharma’s automated market maker, which also sits at the heart of the Dharma DEX trading platform. With the partnership, it becomes the exclusive provider of swaps functionality for Xverse users.
“Velar Dharma now powers all swap functionalities, giving users access to over 60 trading pairs right at their fingertips,” Thakore said. “Through advanced multi-hop technology, users can swap any token to any other token from these pairs, allowing for maximum flexibility and liquidity.”
Breaking down barriers to Bitcoin’s ecosystem
The Xverse wallet has grown to become one of the most significant gateways to the nascent Bitcoin ecosystem, allowing users to manage a diverse portfolio of Bitcoin-native assets such as BTC itself, BRC-20 tokens, Ordinals and Runes. The wallet is available as both a mobile app and a web browser extension, and offers some of the most comprehensive support for Bitcoin assets in the industry.
As for Velar Dharma, it is probably best known for its Bitcoin-based DEX, which features deep liquidity pools to facilitate rapid swaps at some of the lowest rates around. The collaboration with Xverse is a key step in Velar Dharma’s plan to expand beyond the Stacks L2, to support additional Bitcoin L2s and play a more important role in the wider Bitcoin ecosystem.
Velar’s deep liquidity is the big attraction of today’s announcement, Thakore said. He pointed out that speedy transactions are critical for DeFi users in a volatile crypto world where asset prices can change dramatically within just a few seconds.
“High-speed swaps ensure that users can execute their trades in real-time, capturing the best possible prices without delays,” he said. “With Velar’s deep liquidity pools, Xverse users can trade with confidence, knowing they’ll receive competitive rates and quick transaction settlements.”
According to Thakore, Bitcoin has the potential to become the foundation for the next generation of financial products. Thanks to the Bitcoin Taproot upgrade, which paved the way for Ordinals, Runes and other innovations, Bitcoin is poised to grow its role from a simple store of value and payments mechanism to become a platform for innovative DeFi solutions that power trustless finance on a global scale.
“We want to unlock Bitcoin’s potential in the DeFi space by offering robust, user-friendly, and highly secure tools – whether it’s trading, lending, or staking, all centered on Bitcoin,” he explained.
Collaboration is essential for growth
As the largest wallet focused on the Bitcoin ecosystem, with more than 400,000 active users, Xverse is an ideal partner for Velar Dharma as it looks to achieve those aims, Thakore believes. From a practical perspective, the partnership will expand Velar’s capabilities to a group of users who are highly-engaged with Bitcoin.
“Every one of those 400,000-plus users now has direct access to our powerful swap functionalities,” he added. “With Velar's deep liquidity pools, Xverse users can trade with confidence, knowing they’ll receive competitive rates and quick transaction settlements.
Thakore added that Velar and Xverse share a similar vision of Bitcoin’s future as the foundation of a comprehensive DeFi ecosystem that can potentially outgrow the one built on Ethereum. Recent innovations have already proved that Bitcoin can be much more than just digital gold, and power DeFi, NFTs and a host of complex decentralized applications.
In order to fulfill that vision, it’s essential for projects like Velar Dharma and Xverse to collaborate as closely as possible.
“They understand the intricacies of Bitcoin and its Layer-2 solutions like Stacks, Bitlayer, and BRC-20,” he continued. “We believe in partnering with projects that prioritize the user experience and security as much as we do, and Xverse was the perfect fit to help us scale our vision.”
In addition to partnerships, Velar Dharma is also focused on reaching out to the growing Bitcoin community to increase engagement and awareness of its evolving capabilities. To that end, Velar recently airdropped $3 million worth of USD tokens to more than 21,000 wallets in the Stacks community.
“This initiative wasn’t just about rewarding early adopters, it was about fueling the momentum of Bitcoin’s growing ecosystem and encouraging more participation at the grassroots level,” Thakore said. “Velar is committed to being at the forefront of this evolution, empowering users with more tools, better liquidity, and a future-ready DeFi ecosystem built on Bitcoin.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
