A liquid token called PBTC provides yield and is backed by native Bitcoin and its derivatives, it operates on multiple chains and the on-chain custody of PBTC's backing assets (e.g., BTC) is secured by licensed, regulated custodians using MPC-enabled technology.          

PBTC's assets are secured through institutional-grade, on-chain multi-party computation (MPC) custody, which provides access to both centralized finance (CeFi) and decentralized finance (DeFi) liquidity sources.                     

Photon Labs provides best-in-class, value-additive solutions that position Bitcoin as the premier universal store of value and a fully financialized asset, driving the cryptocurrency's next growth phase. By connecting idle Bitcoin assets to new fiscal primitives and cross-chain interoperability, Photon paves the way for a broader user base and creates a more inclusive and dynamic economic future, reinforcing Bitcoin’s position at the heart of the trillion-dollar decentralized economy.                    

PBTC allows Bitcoin holders to access DeFi services across multiple blockchain networks without their assets leaving the Bitcoin ecosystem. These assets are verifiable on-chain at any time by anyone, and no single entity has control over them.                    

PBTC seeks a carefully balanced approach, acknowledging the trade-offs between fully decentralized and centralized solutions. By minimizing trust assumptions with each iteration, PBTC aims to uphold Bitcoin's decentralized principles while expanding its real-world financial applications.

Here’s how PBTC can help establish a native credit system for Bitcoin, including but not limited to:

Decentralized Lending and Borrowing :

By depositing PBTC into a DeFi lending protocol, users can earn interest as their PBTC is borrowed by others who provide collateral. This decentralized mechanism allows Bitcoin holders to generate yield and access credit without relying on centralized exchanges or custodians.

Collateralized Debt Positions (CDPs) :          

By depositing 1 PBTC as collateral, a user can generate a stablecoin equivalent to 70% of the PBTC's value. This stablecoin can then be used for other financial activities, effectively providing liquidity without the user selling their Bitcoin holdings.*Yield

Farming and Staking :     

Staking PBTC in a liquidity pool allows users to earn rewards in the form of additional tokens. This generates passive income and incentivizes participation in the DeFi ecosystem.

For Bitcoin holders, PBTC allows the holder to:

1. Deposit or stake your BTC assets directly on their native blockchain networks.

2. Receive PBTC directly on the destination blockchains without the need for a cross-chain bridge.

3. Earn a passive income from a variety of sources, including:

          A . Bitcoin staking
          B. Delta-neutral strategies               
          C. Ecosystem incentives from Photon Labs and partners

4. Retain the liquidity and value of their Bitcoin assets.

5. Hold or use PBTC in yield-generating DeFi activities such as:               

          A. Provide liquidity to DEXs               
          B. Lend to earn interest               
          C. Yield farming & trading               
          D. Mint yield-bearing synthetic assets               
          E. Other novel and innovative yield-generating activities          

The creation of a native PBTC credit system could be a major breakthrough for the cryptocurrency industry. By enabling Bitcoin holders to leverage their assets in a decentralized way, PBTC enhances Bitcoin's functionality and seamlessly integrates it into the wider DeFi ecosystem. This innovative approach preserves Bitcoin's value and security while also unlocking new opportunities to access diverse financial services and liquidity.          

PBTC aims to enhance Bitcoin's decentralized framework and minimize the need for trust, providing users a secure platform to participate in decentralized credit systems. By bridging Bitcoin's core principles with DeFi's.