Velar DEX has expanded its self-deployed pool capabilities to include sBTC as a base pair option. Previously limited to STX-only pairings, this update provides our community with greater flexibility to build liquidity and capture value in the Bitcoin DeFi ecosystem.

Enhanced Pairing Options

The addition of sBTC as a base pair allows users to create custom trading markets between sBTC and any token on the network. This development addresses a key community need by enabling direct sBTC trading routes without requiring intermediate conversions through STX.

For projects and token holders, this means:

• Direct market connections between your token and Bitcoin-backed assets

• Additional opportunities to earn fees from trading activity

• More pathways to build meaningful liquidity

• Contribution to a more robust sBTC ecosystem

Benefits of sBTC-Based Pools

sBTC offers distinct advantages as a base pair compared to STX. As a Bitcoin-backed asset, sBTC typically demonstrates lower volatility than STX, providing several key benefits:

The reduced volatility of sBTC creates more stable trading conditions for paired tokens. With less price fluctuation in the base asset, the paired token's true market dynamics become more visible and less influenced by base pair volatility. This stability helps projects showcase their token's actual market performance rather than having it obscured by STX price movements.

For liquidity providers, sBTC-based pools may present lower impermanent loss risk during market turbulence. The closer correlation between sBTC and USD value (compared to STX) can help preserve overall pool value during market downturns.

Token projects looking to build sustainable liquidity will find that sBTC pairs often attract Bitcoin holders seeking yield opportunities without leaving the Bitcoin ecosystem, potentially leading to deeper and more resilient liquidity over time.

Implementation Details

Creating self-deployed pools with sBTC follows the same streamlined process established for STX pools. Users can access the pool creation interface at https://app.velar.com/create-pair, select sBTC instead of STX as the base token, and pair it with their desired token.

The technical requirements remain consistent:

• Minimum required amount of sBTC for pool initialization

• Token contract address for the pairing asset

• Connected wallet with sufficient balances

• Basic understanding of liquidity pool mechanics

Ecosystem Benefits

This update directly supports Velar's mission to expand Bitcoin DeFi functionality. By enabling sBTC pool creation, we're helping establish:

• More efficient price discovery mechanisms for sBTC pairs

• Deeper liquidity for Bitcoin-backed assets in DeFi

• Greater utility for sBTC within the ecosystem

• Reduced friction for Bitcoin holders entering DeFi

Managing Your Pools

After creation, sBTC pools appear alongside STX pools in the "Bonding Curve & Self-Deployed Pools" section of the interface. Pool creators and liquidity providers can track performance metrics, manage positions, and adjust their strategy as market conditions evolve.

For liquidity providers, the same flexibility options apply:

• Remove liquidity when needed with both tokens returned based on current ratios

• Optionally burn LP tokens to signal long-term commitment to the pool

Getting Started

Ready to create an sBTC trading pair? Our comprehensive guide covers the entire process from initial setup to ongoing management. Access the guide to creating self-deployed pools here.

Looking Forward

The addition of sBTC pool support represents another step toward creating a full-featured DeFi ecosystem anchored to Bitcoin's security and value. As we continue building infrastructure for Bitcoin DeFi, these foundational liquidity tools will play an increasingly important role in market development.

We invite our community to explore these new capabilities and contribute to the growing network of sBTC trading pairs on Velar DEX.