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arXiv · 2507.06064

Wrapless: The trustless lending protocol on top of Bitcoin

Oleksandr Kurbatov·Kyrylo Baibula·Yaroslava Chopa·Sergey Kozlov·Oleh Komendant·Illia Dovhopolyi·Dmitrii Kurbatov·Zakhar Naumets·Yuliia Aritkulova·Pavel Kravchenko·Volodymyr Dubinin·Lasha Antadze·Yaroslav Panasenko·Mykhailo Velykodnyi
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Abstract

This paper presents Wrapless -- a lending protocol that enables the collateralization of bitcoins without requiring a trusted wrapping mechanism. The protocol facilitates a "loan channel" on the Bitcoin blockchain, allowing bitcoins to be locked as collateral for loans issued on any blockchain that supports Turing-complete smart contracts. The protocol is designed in a way that makes it economically irrational for each involved party to manipulate the loan rules. There is still a significant research area to bring the protocol closer to traditional AMM financial instruments.

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Oleksandr Kurbatov, Kyrylo Baibula, Yaroslava Chopa, Sergey Kozlov, Oleh Komendant, Illia Dovhopolyi, Dmitrii Kurbatov, Zakhar Naumets, Yuliia Aritkulova, Pavel Kravchenko, Volodymyr Dubinin, Lasha Antadze, Yaroslav Panasenko, Mykhailo Velykodnyi. 2025-07-08. Wrapless: The trustless lending protocol on top of Bitcoin. https://arxiv.org/abs/2507.06064

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