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Generic Use Cases
A running list of potential use cases for DLCs
DLCs enable Bitcoin on-chain deposits for lending, trading and investing.
CeFi Finance and Settlement
Credit Trading Desks: Integration allows the custodian to provide borrowing and other financial services to their self-custodied Bitcoin clients.
Prime Brokers: Integration enables the ability to escrow and conditionally move native Bitcoin with instant finality and without requiring triparty custody.
Digital Asset Custodians: Integration allows the custodian to provide borrowing and other financial services to miners and other self-custodied Bitcoin clients.
Exchanges and OTC Desks: By facilitating trades via escrow, DLC.Link provides immediate Bitcoin finality (vs. 24-48 hour execution times where intermediaries are involved) and eliminates slippage on trades by facilitating escrow (where several percentages can cost millions).
Payments: Lock BTC to be used in a Lightning transaction. Enable Bitcoin wallets to have a refund transaction.
DeFi Lend/Borrow Protocols: Integration provides the ability to provide a soft-pegged stablecoin or loan backed by Bitcoin collateral secured on-chain.
NFTFi Lending Marketplaces: Borrow stablecoin against native Bitcoin.
Cross-Chain Protocols: Integration enables application developers to build smart contracts that move native Bitcoin.
Ordinals trading protocols: Integration enables ordinals to be traded and borrowed against in OpenSea and other smart contract NFT marketplaces.
Miners: Enable Bitcoin hashrate derivatives, allowing conditional BTC mining reward payouts either on Bitcoin or the Lightning Network.