❓FAQ
Q1: Can you provide a major use case?
A: Absolutely. Our primary clients at this stage are NASDAQ-listed Bitcoin mining corporations who face a critical liquidity challenge: they want to hold BTC for appreciation while accessing stablecoin liquidity for operational expenses—electricity bills (often 50% of one BTC's value for mining each BTC), administrative costs, equipment purchases, and business expansion.
The Current Problem: These companies currently use ~200,000 BTC as collateral with centralized lenders like Antalpha, but face significant operational challenges:
Loss of Control: They must transfer their BTC to centralized parties, losing visibility and control over their assets—a major concern for publicly traded companies with fiduciary responsibilities
Slow Redemption Process: Even after repaying loans, retrieving their BTC takes 9-21 days through centralized processes, while they remain anxious about asset security throughout the entire lending period
Our Solution: We're helping them transit to fully decentralized, trustless borrowing, starting with an initial 3,000 BTC commitment. Here's how it works:
Self-Custody Maintained: Clients lock their BTC using Hash Time Lock Contracts (HTLC) in their own wallets on Bitcoin L1—they never lose control of their assets and also can check the existence of asset 24/7.
Verifiable Proof Generation: Our ZK light client generates cryptographic proof that the BTC is properly locked and available
Cross-Chain Execution: We transmit this proof to counterparty blockchains and execute loans through decentralized lending protocols
Guaranteed Settlement: The system ensures that either:
The borrower repays the stablecoins on the predetermined date, OR
The locked BTC automatically transfers to the liquidity provider's predetermined wallet address
Rapid Redemption: Upon loan repayment, clients can unlock and access their BTC in just ~100 minutes (10 Bitcoin block confirmations)—not weeks
The Result: Mining companies get the stablecoin liquidity they need for operations while maintaining full custody of their BTC holdings—something impossible with traditional centralized lending. This represents the first truly trustless solution for institutional Bitcoin-backed lending at scale.
Q2: Can you explain the process with regards to the UTXO, signatures, and custody of the address? In EVM, the smart contract automatically sells assets when liquidation conditions are met. Does the hash time-locked contract require two signatures in addition to the other conditions? What are these other conditions and their triggers?
A: Our Bitcoin HTLC operates through two predetermined conditions, both established when the user initially signs the contract:
Condition 1 - Normal Repayment (Self-Redemption):
Trigger: User repays their loan on the target chain within the agreed timeframe
Verification: The system confirms the loan repayment through proof burning on the target chain
Execution: Activated by the user's taproot proof signature + their pre-image
Custody: Implements "pay-to-self" structure, ensuring that even if the pre-image is compromised, funds can only return to the original user's address
Condition 2 - Default/Liquidation:
Trigger: User fails to repay by the deadline, triggering liquidation on the target chain
Verification: Liquidation is confirmed through the liquidation burning contract on the target chain
Execution: Activated by taproot proof signature + pre-image revelation to authorized liquidation bots
Custody: Implements "pay-to-protocol" structure, ensuring liquidated collateral goes directly to the lending protocol regardless of who executes the liquidation
Key Security Features:
Both destination addresses are predetermined and locked in at contract creation
No additional signatures beyond the standard cryptographic proofs are required
The user maintains custody throughout the normal lending period
Automatic execution based on verifiable on-chain conditions eliminates counterparty risk
This creates a trustless system where liquidation happens automatically based on mathematical conditions, similar to EVM smart contracts, but without requiring users to give up Bitcoin custody during the lending period.
Q3. How competitive are you guys with BTC or any other bridges for digital assets that focus on wrapping the assets?
As what we have claimed, Vishwa is the trustless orchestration layer that make your native assets productive. We are brining optimal liquidity and yields to native assets while guaranteeing their self-custody without involving any additional trust assumptions in between. Take BTC as the benchmark, our potential goes far beyond wrapped tokens.
Currently, wrapped BTC represents only 0.14% of native BTC, while 94% of BTC remains idle and 5% is held in ETFs. We are building middleware that allows native BTC holders to access multiple use cases. Yield generation is just one possibility—other enabled scenarios include:
• Collateral lending
• Collateralized stablecoins
• Perpetual swaps
• Stablecoin reserves
We are pioneering a new era of BTC fintech innovation, enabling an entire ecosystem to develop on top of our core design.
Q4: Exploring Sustainable Profit Models in the BTC Ecosystem, any project you find make real profit?
A:In today’s Bitcoin ecosystem, DeFi development has been relatively slow due to technical limitations. However, with the emergence of trustless infrastructure, we believe a new wave of decentralized innovation is imminent.At present,the most consistently profitable BTC-related businesses remain centralized. Notable examples include:
Antalpha – A centralized lending platform expected to IPO on Nasdaq in May (not through a SPAC, but backed by strong, sustainable profits)
Xapo Bank – A custody-focused, high-cash-flow business that spun out from Coinbase and is preparing for its own public listing
Vishwa aims to complement and empower this ecosystem by enabling decentralized lending and trustless custody. Our goal is to unlock the 94% of idle BTC assets, providing solutions for users across different risk appetites.With Vishwa, BTC holders can:
Borrow stablecoins trustlessly while keeping their BTC on native L1 (for electricity bills or everyday use)
Earn passive income (similar to yield products like Yu’e Bao)
Access global credit scores and spending limits for efficient, cross-border payments
In our go-to-market conversations, we’ve received very positive feedback from miners and long-term BTC holders. We’d love the chance to further discuss any parts that you feel interested or remain concerned about with you and James that you would like to connect us with via a call or in person, and would be incredibly grateful for your feedback and guidance.
Q5：Re X Chain -> BTC L1 withdrawals/redemptions, is there a lockup period like other implementations? If so how long?
A：Yes, there is a T+10 mechanism (i.e. 10 blocks of challenging period) so that: - We ensure that challengers receive the broadcast of the open-to-challenge proposed block- We minimize the chance that the challenge block is proposed but not included in the main branch of BTC L1- Upon challenge, the original fund is non-redeemable till the challenge is resolved. Resolvers are economically incentivised as above, that as long as they resolve something, they get slash rewards from either the challenger for false challenge or proposer for false claims, so that we expect that as the return is higher than ordinary blocks, miners are more than willing to process these blocks first
We minimize the chance that the challenge block is proposed but not included in the main branch of BTC L1
Upon challenging, the original fund is non-redeemable till the challenge is resolved. Resolvers are economically incentivised as above, that as long as they resolve something, they get slash rewards from either the challenger for false challenge or proposer for false claims, so that we expect that as the return is higher than ordinary blocks, miners are more than willing to process these blocks first.
Q6:What is Vishwa tech different from Babylon?
A: The original intention of Babylon is to establish a staking infrastructure that allows Proof of Stake (PoS) validators to secure multiple PoS chains through a unified, all-in-one hub. Traditionally, validators had to build separate infrastructure for each PoS chain they wanted to secure, resulting in inefficient practices where a single stake could only serve one chain, leading to lower efficiency and returns. Babylon aims to address this issue. As Babylon is also a blockchain, it implements a decentralized system where all staking activities are recorded on the BTC layer using timestamps (which are sequential and cannot be arbitrarily altered) to avoid the pitfalls of centralization. Babylon was not created to provide liquidity or release BTC’s flow; instead, the assets staked by users are primarily used to protect multi-chain security, and currently, there are no certificates or tokens provided for users to use those staked assets elsewhere.In contrast, Vishwa, as the first trustless message relay on and of BTC, was designed to safely and transparently release the idle liquidity of BTC in a decentralized manner. It employs technology on BTC’s Layer 1 that utilizes the native HTLC’s (Hash Time Locked Contracts) functionality, allowing users to manage their BTC without surrendering its custody to a centralized third-party. Instead, they have the autonomy to lock their assets in their own UTXO and, through Vishwa's infrastructure, obtain redeemable and liquidationable 1:1 proof of asset. M. Vishwa’s infrastructure was created as a safe solution to finance liquidity, and its technical approach differs from that of Babylon, which focused on different aspects of staking security.
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