About UTXO Stack

What is UTXO Stack?

UTXO Stack  is a decentralized liquidity staking layer for the Hybrid Lightning Network (Hybrid LN), designed to tackle the key challenges in Lightning Network (LN) adoption, including liquidity shortages, onboarding barriers, and the lack of stablecoin support.

UTXO Stack’s comprehensive infrastructure—featuring the Decentralized Liquidity Staking Pool (DLSP), Hybrid LN (LN + Fiber Network (FN) ), and supporting tools like JoyID wallet  and P2P payment SDK—offers scalable, user-friendly, and interoperable solutions to enhance the Bitcoin Lightning ecosystem.

Goals of UTXO Stack

1. Enhance Liquidity
   UTXO Stack tackles the Lightning Network’s liquidity challenges by aggregating and optimizing liquidity through its DLSP.

2. Enable Stablecoin Payments
   Through the Hybrid LN, UTXO Stack introduces stablecoins like USDI  into the Lightning Network, bridging the gap between Bitcoin’s volatility and practical everyday payments.

3. Lower Onboarding Barriers
   The Zero-Cost Channel Opening (ZCCO) mechanism eliminates upfront costs for opening Lightning Network channels, simplifying entry for new users and expanding adoption.

4. Empower the Lightning Network
   UTXO Stack aims to transform the Lightning Network into a global peer-to-peer payment infrastructure, making seamless and decentralized payments accessible to everyone.

Core Technology

1. Hybrid Lightning Network (LN + FN)

   • Integrates the Lightning Network with the Fiber Network, leveraging Nervos CKB’s Turing-complete capabilities for seamless asset interoperability and stablecoin support.
   • Facilitates cross-network liquidity and atomic swaps between Bitcoin and stablecoins.

2. Decentralized Liquidity Staking Pool (DLSP)

   • Aggregates BTC, CKB, and stablecoin liquidity into a decentralized pool.
   • Provides liquidity to LN and FN nodes, enabling efficient routing and payment reliability.
   • Introduces Liquidity Staking Derivatives (LSD) to unlock staked asset liquidity for DeFi applications.

3. RGB++ Protocol

   • RGB++  is a decentralized asset issuance protocol designed for the Bitcoin blockchain.
   • Through RGB++, stablecoins can be issued on Bitcoin and seamlessly flow into the Hybrid Lightning Network.

How UTXO Stack Empowers the Lightning Network

1. Optimized Liquidity
   By addressing liquidity shortages, UTXO Stack ensures smoother transactions and more efficient routing across the Lightning Network.

2. Expanding Use Cases
   With stablecoin support, LN becomes a versatile ecosystem for microtransactions, cross-border payments, and even AI-driven high-frequency interactions.

3. Inclusive Adoption
   Zero-Cost Channel Opening makes LN more accessible, encouraging both individual users and businesses to participate in the Bitcoin Lightning ecosystem.

Explore the Documentation

This documentation is designed to provide a comprehensive guide to UTXO Stack. Here’s what you’ll find in each section:

• Whitepaper: Delve into the detailed technical and economic design of UTXO Stack through our official whitepaper.
• User Incentive Event: Learn about our User Engagement Event, including how to earn points, fund your wallet, and participate in the Lightning Network ecosystem.
• FAQ: Find answers to common questions about UTXO Stack, its features, and how to get started.