We are thrilled to announce a partnership between Native and BQ Labs, a pioneering insurance protocol built specifically for the Bitcoin ecosystem. This collaboration marks a new chapter in advancing the security, trust, and risk management capabilities of Bitcoin-based decentralized finance (DeFi) applications. By integrating BQ Labs’ decentralized insurance infrastructure with Native’s Bitcoin Liquidity, Interoperability, and Scaling Stack (BLISS), we’re laying the foundation for a safer and more robust ecosystem where users can interact and build with peace of mind.

‍What is BQ Labs?

BQ Labs is building the first-ever Bitcoin Risk Management Layer, designed to secure the Bitcoin ecosystem through a decentralized insurance protocol. The BQ Protocol allows Bitcoin holders to earn yield on their idle BTC by underwriting insurance as a liquid asset class while also providing risk coverage for various BTCFi activities. This enables projects and users to access insured TVL (Total Value Locked) loans, creating a triple win scenario:

- Projects benefit from lower APY on insured loans.

- Liquidity providers have safer participation due to coverage.

- BQ Labs generates revenue by providing critical risk management services.

By securing activities like staking, lending, and vault management, BQ Labs aims to bootstrap the entire Bitcoin DeFi ecosystem, making it more secure, transparent, and attractive to both retail and institutional participants.

How Native and BQ Labs Will Work Together

Native’s BLISS stack is built to provide a secure and scalable infrastructure for Bitcoin Layer-2 solutions, enabling cross-chain liquidity and interoperability. With the addition of BQ Labs’ insurance protocol, we are enhancing our ecosystem with a dedicated risk management layer that supports a wide range of use cases. Here’s how this partnership will benefit the community:

1. Stakers Can Stake With Peace of Mind

Staking on Layer-2 solutions often comes with risks such as slashing events, where stakers can lose a portion of their assets if the network or validator behaves maliciously. Through this partnership, BQ Labs will offer insurance coverage for such slashing risks, ensuring that stakers can participate with greater confidence and security.

   - Use Case: A user stakes their BTC on a Bitcoin Rollup integrated with BLISS. By utilizing BQ Labs’ insurance protocol, they can purchase coverage against slashing events, ensuring they are protected even if unforeseen issues occur. This will lead to increased staking participation and a healthier network.

2. Decentralized Insurance for dApps Built on Native 

Developers building DeFi applications, cross-chain lending platforms, or new financial products on Native can now underwrite risk directly with BQ Labs. This ensures that dApps launching on Native have access to a decentralized insurance protocol that can protect against risks such as smart contract exploits, flash loan attacks, or other vulnerabilities.

   - Use Case: A DeFi lending platform on Native can offer insured TVL to its users, allowing liquidity providers to deposit funds with confidence. This not only makes the platform more attractive to users but also differentiates it as a safer alternative in the competitive DeFi space.

3. Risk Management for Vaults and Liquidity Pools 

Any vaults or liquidity pools built on Native can now integrate BQ Labs’ insurance protocol to mitigate risks associated with impermanent loss, smart contract vulnerabilities, or market manipulation. This provides an added layer of protection for DeFi users, increasing the overall security and resilience of the platform.

   - Use Case: A yield-farming vault on Native can utilize BQ Labs to insure its pool against potential losses due to extreme market volatility or exploits. Users depositing their assets can opt for coverage, knowing that their investments are safeguarded by a decentralized risk management layer.

Building a More Secure Bitcoin Ecosystem

This partnership is more than just an integration—it represents a shared vision for a safer, more decentralized Bitcoin DeFi landscape. By combining Native’s zero-trust architecture and seamless multi-chain capabilities with BQ Labs’ insurance solutions, we are empowering users and developers to build and interact with native Bitcoin in a more secure environment.

With BQ Labs, Bitcoin holders can put their idle BTC to work by underwriting insurance as a new asset class, earning yield while contributing to the overall security of the ecosystem. At the same time, developers can launch new applications and financial products with the assurance that critical risk factors are covered.

Why This Matters for the Bitcoin Ecosystem

The integration of a decentralized insurance protocol with a secure, scalable Bitcoin application platform like Native addresses several key pain points that have historically limited Bitcoin’s adoption in DeFi:

1. Enhanced Security:  

   Users can now interact with Bitcoin DeFi applications with greater confidence, knowing that potential risks are covered.

2. Attracting Institutional Participants:  

   Institutions are more likely to enter the space when robust risk management solutions are in place. This partnership opens the door for greater institutional involvement in Bitcoin DeFi.

3. Increased Liquidity & User Participation:  

   With insurance coverage available, more users are likely to participate in staking, lending, and liquidity provision, ultimately boosting the overall liquidity of the ecosystem.

4. Bootstrapping New Use Cases:  

   By offering insured TVL loans, platforms built on Native can attract more users and differentiate themselves with unique value propositions.

Looking Ahead

As we move forward, Native and BQ Labs will continue to explore new opportunities to enhance the security and utility of Bitcoin within the decentralized finance landscape. Together, we aim to create a comprehensive, risk-managed environment that encourages innovation and growth while maintaining the highest standards of safety and decentralization.

About Native:Native is a Zero Trust Bitcoin platform that empowers Bitcoin ecosystem with BLISS - a Bitcoin liquidity, interoperability and security stack. BLISS is a modular, next-generation stack designed to overcome Bitcoin’s limitations and establish Bitcoin as a core asset in DeFi by enabling trust-minimized interoperability and fast finality.TwitterWebsiteAbout BQ labs:BQLabs sets out to secure the 21 million BTC onboarding to DeFi. Built to mitigate the risks& accelerate the adoption of the budding BTC Ecosystem , we provide protocols and validators with a Risk Management Layer and BTC hodlers with a decentralized Insurance Marketplace.TwitterWebsite