Founders Fund and Galaxy Ventures-backed Bitcoin zero-knowledge rollup (ZK-rollup) Citrea launched its mainnet on Tuesday with BTC collateral lending, BTC-structured merchandise and a brand new US greenback stablecoin, ctUSD.
The launch is aimed toward turning what Citrea calls “economically idle” Bitcoin (BTC) into base collateral for decentralized finance (DeFi) and funds, whereas anchoring extra of that exercise to Bitcoin’s base layer.
The group expects energetic DeFi liquidity to succeed in $50 million within the first few weeks, with BTC lending, BTC-structured merchandise, and decentralized buying and selling already stay from day one.
The mainnet debut instantly dropped Citrea into a well-recognized Bitcoin argument: What ought to scarce BTC block house truly be used for?
With block rewards declining over time, many builders see non‑cost use circumstances like Citrea as important to sustaining miner payment income.
Nonetheless, purists argue Bitcoin’s restricted capability must be reserved for easy, censorship‑resistant funds slightly than complicated monetary programs constructed on high.
CtUSD goals to repair Bitcoin stablecoin liquidity
CtUSD is issued by MoonPay, a regulated crypto funds and infrastructure agency that gives fiat on and off‑ramps for digital property.
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It’s backed 1:1 by money and quick‑time period US Treasurys, and marketed as a compliance‑ahead various to wrapped Tether (USDT) and wrapped USDC (USDC) that flow into on Bitcoin‑adjoining stacks.
Orkun Mahir Kılıç, the co‑founder and CEO of Chainway Labs, the corporate behind Citrea, instructed Cointelegraph that ctUSD was “natively issued” on its rollup slightly than bridged from one other chain, and wired into MoonPay’s Iron banking infrastructure.
That setup consists of banking‑grade rails comparable to digital Worldwide Financial institution Account Numbers (vIBANs), permitting customers to wire in fiat that’s routinely transformed into ctUSD and settled onchain.
Why ctUSD’s ‘native’ design issues
As a result of Citrea is “the Bitcoin software layer anchored to Bitcoin’s safety mannequin,” ctUSD “inherits the safety properties of the Citrea community itself.”
That reduces a number of the dangers inherent in different DeFi protocols, since bridged property “inherit the safety dangers of their weakest hyperlink,” Kılıç stated.
He added that ctUSD, by being natively issued, was protected from exterior bridge hacks, and “not depending on the solvency of a third-party wrapping protocol.”
Not like different ecosystems the place “liquidity is break up throughout a number of bridged variations of the identical asset,” ctUSD is “the only, most popular stablecoin for Citrea,” eliminating the “liquidity fragmentation that usually traps capital and will increase slippage for lenders and merchants.”
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Kılıç argued that combining a Bitcoin‑anchored rollup with a regulated stablecoin and banking integrations was designed to “systematically increase provide” and evolve ctUSD “from a launch asset into the usual liquidity layer for the Bitcoin financial system” over the subsequent six to 12 months.
On the testnet, Citrea says its knowledge availability utilization alone accounted for almost 10% of Bitcoin’s month-to-month knowledge bandwidth at one level, an indication that even pre‑launch rollup exercise can devour a significant slice of Bitcoin block house.
Citrea launch reignites block house wars
Bitcoin core developer and Casa chief safety officer Jameson Lopp referred to as the rollout “the subsequent grand experiment in producing sustainable demand for block house.”
Nonetheless, one follower identified that Citrea customers are usually not actually lending, buying and selling and selecting the Bitcoin community as described, however on Citrea’s Ethereum Digital Machine, with Bitcoin solely storing the proofs, successfully turning Bitcoin right into a “submitting cupboard” for rollup receipts.
He pointed to Citrea’s “single sequencer,” offchain treasury, and “10‑get together federation,” as belief assumptions that transfer, slightly than take away, threat. “You recognize the distinction. You’re pretending you don’t,” he jibed at Lopp.
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