Bitcoin Smart Accounts: A New Framework for Native BTC DeFi
Lombard Finance researchers introduced Bitcoin Smart Accounts, a protocol for enabling native Bitcoin DeFi with self-custody using PSBTs, Taproot, and TEE-based arbitration. The paper references BitVM-style covenant emulation and positions the design as a lower-complexity alternative to trust-minimized bridges.
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Bitcoin Smart Accounts: Trust-Minimized Native Bitcoin DeFi Infrastructure
Bitcoin’s limited programmability and transaction throughput have historically prevented native Bitcoin from participating in decentralized finance (DeFi) applications. This paper introduces Bitcoin Smart Accounts (BSA), a novel protocol that enables native Bitcoin to access DeFi through trust-minimized infrastructure while maintaining self-custody of funds.