Velar is a decentralized liquidity protocol built on the Bitcoin Layer 2 ecosystem, offering a full suite of DeFi products—including token swaps, perpetual futures, yield farming, and a token launchpad—accessible directly from the Bitcoin network through Stacks.

How does Velar work?

At its core, Velar is designed to bring capital efficiency and composability to Bitcoin. Users can trade tokens with minimal fees through Dharma (Velar's native swap module), gain leveraged exposure to crypto markets using Artha (a perpetual DEX), or invest in early-stage Bitcoin projects via the Velar Launchpad. Each of these products is built to integrate deeply with the Bitcoin economy by leveraging Layer 2 infrastructure and secure smart contracts.

Key features

Velar is Bitcoin-native in multiple ways. First, it integrates with Stacks, a Bitcoin Layer 2 that allows smart contracts to be secured by Bitcoin’s finality. This means users can interact with Velar apps and earn or swap using STX, sBTC, and other SIP-10 tokens, with all actions settled on Bitcoin. Second, Velar supports seamless cross-chain functionality with Ethereum through Velar Bridge, enabling asset movement between chains without needing custodial intermediaries.

The protocol is supported by a developer platform that includes APIs, an SDK, and contract audits to foster integrations and expand Bitcoin DeFi tooling. Velar is governed by its native token, used for rewards, governance, and potentially collateral in trading applications.

Users can interact with Velar using wallets like Leather, and participate in liquidity provision, trade STX or sBTC pairs, or gain leveraged exposure to assets like BTC or USDh on Velar's perpetuals exchange.

With the rise of sBTC and Bitcoin-based liquidity protocols, Velar positions itself as a gateway to composable, scalable, and user-friendly Bitcoin DeFi.