Bitcoin DeFi Has Been Elusive. Can Mysten Labs Bring $1.4 Trillion Onchain?
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Hi, everyone. Welcome to Unchained, your no hype resource for all things crypto. I'm your host, Laura Shin. Thanks for joining this livestream. Before we get started, a quick reminder, nothing you hear on Unchained is investment advice. This show is for informational and entertainment purposes only, and my guest and I may hold assets discussed on the show. For more disclosures, visit unchainedcrypto.com. Introducing Nexo, the premier digital wealth platform. Receive interest on your digital assets. Borrow against them without selling. Trade a variety of cryptocurrencies. All in one platform. N
Thank you for having me on the show. It's a pleasure.
Miston Labs, which is behind the SWI blockchain, has big news today about Hashi, a new decentralized and trustless smart contract based way to unlock DeFi for native Bitcoin. And you'll be launching that later this year. Tell us about Hashi.
Yeah. So a bit of background. Look, twenty twenty twenty six is gonna be a year where Bitcoin truly becomes collateral instrument, especially in DeFi. So in 2024, what we really had was a year where we had a bunch of Bitcoin ETFs launched. None of that actually earn any yield. All of it was pretty much locked into custodians like Bitcoin, you name it. Most of crypto never actually benefited from any of this. Nearly 60% or so of crypto market cap never cross proliferated into the rest. And it never saw the huge wave we expected in 2425. Right. There's a lot of Bitcoin L2 mantra that was going o
And as you mentioned, you were saying that this is the first time that there will be such a trust minimized way to use Bitcoin in like a smart contract. And I saw the press release was saying that Hashi quote takes an entirely different approach than existing wrapped Bitcoin offerings. So explain how you're able to achieve all of that on the back end.
Sure. So if you look at if you look at WBTC, as you just mentioned, WRAP BTC, the the multiple variants of it. Right? WBTC was a brilliant step forward, but only gained 1% of the Bitcoin of in in existence. Right? That's in part of due to the taxable nature of wrapping the BBTC. So the process of doing the wrapping actually creates a taxable event, which is absolutely going to restrict the amount of Bitcoin equivalent provision because I want to borrow against my Bitcoin being hit by a tax does not make it something that's absolutely viable. Our approach is very, very different with Hashi. Now
Okay. This is really interesting. So give us some of the details on the MPC wallet, like how many signers, how many keys, because the details around how it's set up really matter for people who might remember, I think it was, was it the wormhole one where they had? Yeah. Yeah. So the details around this matter because just splitting it up and making multiple people responsible does not mean that it's secure.
Yeah. So the way it works is very different, right? So every single validator on the SWE network, over a 125 validators, are all part of the signatory on the multisig account. So the same protocol that governs billions of dollars in the SWE network, ensuring the safety of the SWE network that can process hundreds of thousands of transactions per second is effectually using the same cryptographic primitives that secures a bit a bit the SWE network to secure that MPC network on a Bitcoin network directly. So you have three blockchain validators directly engaging with a Bitcoin network and indepe
Okay. Wait. And so I'm sorry. You said it was the Sui validators, which is like it's about a a little over a 100?
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