ALEX Labs’ Vision for Bitcoin DeFi
In the rapidly evolving Bitcoin ecosystem, ALEX Labs stands as a trailblazer, driving innovative decentralized finance (DeFi) solutions that unlock new possibilities for Bitcoin holders. On the April 8, 2025, episode of Leather Lounge, host Sean Longstreet welcomed Hadan Espiridiao, “poet in residence” at the ALEX Lab Foundation, to discuss ALEX’s latest advancements and future plans. From the launch of ALEX DAMM—a discrete automated market maker for concentrated liquidity—to the integration of native USDT via Taproot assets, ALEX is redefining Bitcoin DeFi while staying true to its core values of security and accessibility. With over $2.6 billion in total value locked (TVL), ALEX has become a cornerstone of the ecosystem, and Leather, the premier Bitcoin wallet, empowers you to explore these advancements securely.
ALEX DAMM: Revolutionizing Liquidity for Bitcoin DeFi
ALEX Labs is set to roll out ALEX DAMM, a discrete automated market maker that introduces concentrated liquidity to Bitcoin DeFi. But what does this mean for you as a Leather user? Hadan explains, “A market maker connects buyers and sellers… [and] an automated market maker [replaces] humans with code.” Traditional AMMs, like Uniswap’s V1, distribute liquidity across a wide price range—from zero to infinity—exposing liquidity providers (LPs) to risks like impermanent loss during extreme market swings.
ALEX DAMM allows LPs to focus their liquidity in narrow price bands—1%, 5%, 10%, or 20% around the current price. “By concentrating your liquidity… the potential yield you have may be significantly higher,” Hadan notes. For example, if Bitcoin stays within a 1% range, LPs can potentially earn triple-digit APRs due to high trading activity in that band. However, if the price moves outside this range, your liquidity converts entirely to one asset (e.g., all USDT if Bitcoin rises). To manage this risk, you can diversify across multiple buckets, such as placing some liquidity in the 5% or 10% ranges for a more balanced risk profile.
For traders using Leather, ALEX DAMM offers better prices, less slippage, and faster execution. “That liquidity is so concentrated… you as a trader are receiving better prices,” Hadan says. This creates a flywheel effect: more trading rewards LPs, attracting more liquidity, which benefits the entire ecosystem. ALEX DAMM also introduces advanced features like immediate-or-cancel and fill-or-kill orders, giving traders more control—similar to limit orders on centralized exchanges but without the centralization risks or KYC. With Leather’s secure self-custody wallet, you can confidently provide liquidity or trade on ALEX DAMM, knowing your Bitcoin remains private and protected.
Native USDT on Bitcoin: A New Era of Interoperability
ALEX Labs is preparing for the integration of native USDT via Taproot assets, a development Hadan describes as transformative. “It’s difficult to understate the significance… [as] a Bitcoin holder, [you can] hold both Bitcoin and the largest stablecoin by market cap natively in your Bitcoin wallet,” he explains. This integration, expected to leverage the Lightning Network, will enable permissionless US dollar transfers globally within seconds, secured by Bitcoin’s hash power.
For Leather users, this means seamless swaps between Bitcoin and USDT directly from your wallet. ALEX’s X-Link bridge will allow you to move assets between Bitcoin’s L1 and L2s like Stacks. “You can connect your Bitcoin wallet… and with one click… do a swap from Bitcoin to USDT,” Hadan says. ALEX is even developing cross-chain hooks to compress these swaps into a single Bitcoin transaction, ensuring your USDT converts to Bitcoin within one block. This streamlined process makes DeFi more accessible, especially for Bitcoin maximalists who prefer a native Bitcoin experience.
Stacks plays a crucial role as a “universal smart contract layer” that reads and writes to Bitcoin’s L1 while remaining 100% secured by its hash power. With Leather, you can access these features without needing a separate Stacks wallet—everything is abstracted, allowing you to focus on exploring DeFi while Leather keeps your assets secure.
ALEX AI: Simplifying DeFi with Artificial Intelligence
ALEX Labs is set to launch ALEX AI in 2025, an AI-powered tool designed to make Bitcoin DeFi accessible to everyone. “Anyone in our space that’s helped onboard a new user knows… so much of it is answering dozens of questions,” Hadan notes. ALEX AI will provide 24/7 support, answering queries like “What is slippage?” or “How can I earn yield on my Bitcoin?” while enabling users to execute transactions via text or voice commands in any language.
Imagine using Leather to connect to ALEX and asking, “Swap $1,000 of USDT to Bitcoin.” ALEX AI will guide you through setting slippage levels, confirm the transaction, and execute it—all without navigating complex interfaces. Or you might say, “I have Bitcoin in my wallet—how can I earn yield?” ALEX AI could respond with options like staking in Surge pools or providing liquidity on ALEX DAMM, then execute your choice with a simple voice command. “No matter where you are in the world, in your native tongue… you can execute and engage with smart contracts,” Hadan envisions.
Surge Campaign: Gamifying DeFi Participation
ALEX Labs’ Surge campaign gamifies yield farming and governance, making DeFi engaging for the community. The third Surge round recently concluded, offering yields like 46% for ALEX-sBTC pairs, 8% for stable pairs like aBTC-sBTC, and up to 240% for meme coin pools. Surge 4, set to launch alongside the sBTC cap 3 release by late April 2025, promises even more opportunities.
“Surge allocated about 12 million ALEX… for community LP pools,” Hadan shares. Users vote on their favorite pools, and rankings determine reward distribution. You can even donate voter rewards to incentivize votes, adding a fun, community-driven element. Between Surge rounds, Hadan advises staking in ALEX’s farming pools for 30–40% APRs over 3–4 cycles (about 12–16 days), ensuring you’re ready for Surge 4. For example, you might stake your sBTC in an ALEX pool now, earn yield, and withdraw in time to join Surge 4’s high-yield opportunities.
With Leather, you can securely stake your assets and participate in Surge, exploring Bitcoin DeFi with confidence. Leather’s self-custody design ensures your Bitcoin remains private, letting you focus on maximizing your yield without worrying about security.
Permissionless Self-Service Listings: Empowering Communities
ALEX Labs recently introduced permissionless self-service token listings, building on contributions from Stacks developer Marvin Jensen. “DeFi protocols on Stacks can interact with any token securely… [proving] that code base matches an existing code base,” Hadan explains. This allows communities to list tokens on ALEX’s DEX without bottlenecks, as code verification ensures security without human review.
For Leather users, this opens up a world of community tokens—from meme coins to utility tokens—all tradable on ALEX. Imagine discovering a new Stacks-based meme coin listed on ALEX, connecting your Leather wallet, and trading it with a few clicks. This aligns with Bitcoin’s permissionless ethos, enabling you to explore new projects while Leather keeps your assets safe.
Resilience in Crisis: ALEX’s Response to the Lazarus Group Hack
ALEX Labs’ commitment to user trust was tested in May 2024, when the Lazarus Group—a North Korean hacker collective—targeted the protocol. “We immediately went into fight mode,” Hadan recalls. The team built custom tracking tools, froze funds across dozens of centralized exchanges, and pursued legal action, recovering nearly 1 million STX by March 2025. Through the ALEX Treasury Grant program, 100% of protocol revenue funds user recovery, with all transactions transparently recorded on-chain.
“We’re here for the long haul,” Hadan emphasizes, noting that no team member resigned post-hack—a testament to their resilience. Hadan remains optimistic, believing that as Stacks and ALEX grow (potentially 10x or 100x), protocol revenues will accelerate user recovery. With Leather, you can engage with ALEX knowing they prioritize security and transparency, ensuring your Bitcoin remains protected as you explore their platform.
Hadan’s Journey: From Physics to Poetry in DeFi
Hadan’s unique perspective as ALEX’s “DeFi Poet” adds a humanistic touch to Bitcoin DeFi. A former physics major at Harvard, Hadan transitioned to finance at Goldman Sachs before joining ALEX Labs in 2021. His passion for poetry, inspired by classics like T.S. Eliot and Tennyson, shapes his mission to make DeFi accessible. “I felt like… I could contribute by trying to help humanize crypto,” he shares, drawing on poetry to convey Bitcoin’s deeper meaning as a tool for financial freedom.
Reflecting on Bitcoin’s potential, Hadan quotes Tennyson’s Ulysses: “We are… strong in will to strive, to seek, to find, and not to yield.” For Hadan, Bitcoin is a call to action—a way to move from apathy to engagement, empowering users to opt into a decentralized future. “By owning Bitcoin, you are actively voting… [for] a radically different system,” he says, emphasizing its role in democratizing finance. With Leather, you can take that step, securely connecting to ALEX and joining this financial frontier.
Your Gateway to Bitcoin DeFi with Leather
ALEX Labs’ innovations—from ALEX DAMM’s concentrated liquidity to native USDT integration—open new frontiers in Bitcoin DeFi, empowering you to do more with your Bitcoin. Whether you’re providing liquidity for high yields, trading tokens with minimal slippage, or exploring vibrant community projects, Leather is your trusted partner on this journey. As the premier Bitcoin wallet, Leather keeps your assets secure and private, giving you the confidence to engage with ALEX’s platform and shape the future of finance. Inspired by Hadan’s vision of Bitcoin as a beacon of hope, take the first step toward financial freedom: connect with Leather today, swap your first sBTC on ALEX DAMM, and dive deeper into Hadan’s insights on Leather Lounge Episode 47—available now on Spotify, Apple Podcasts, or YouTube.
