Muses Upgrade: Technical Update #8 — Why does zBTC stand out? / APOLLO Public Testnet now LIVE

6 min readAug 20, 2024

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Summary

A new golden era has dawned on Solana! On August 8th, APOLLO’s final testnet launched successfully, engaging over 30,000 unique addresses. Users experienced the permissionless integration of Bitcoin assets on Solana, thanks to the major upgrades to the Zeus Program Library (ZPL). This testnet has efficiently processed claims, deposits, and withdrawals since the public testing began.

Non-tech: Recapping Recent Highlights

𐓷 Solana Stage in Taipei @ABS 2024

Zeus Network proudly hosted the Solana Stage at Asia Blockchain Summit 2024 in Taiwan, featuring a keynote by Lily Liu, President of Solana Foundation, along with talks by Zeus Network, Bonk, Backpack, and PolyFlow. Panel discussions covered key topics like “Bitcoin on Solana” with Stacks and APOLLO, and “Web3 Gaming New Era” with Fidelion, Genopets, and Laniakea.

𐓷 Solana Ecosystem Dinner

Co-hosted with Lily Liu, this dinner gathered partners to enjoy Taiwanese cuisine and strengthen bonds within the Solana ecosystem, emphasizing collaboration and early thinking on Bitcoin on Solana.

𐓷 Side-event: Future of Solana w/ Stacks

Teaming up with Stacks, Zeus Network explored the future of Solana during a side event at ABS in Taipei, with contributions from Fidelion, Solar, MOUTAI, and Gen3 to unlock Bitcoin’s full potential on Solana.

Zeus Network

Following extensive testing, including three rounds of APOLLO testnets, the Zeus Dev Team identified key areas for improvement. Before the public launch, a major upgrade optimized ZeusNodes’ efficiency and improved collaboration across ZPL programs.

The final testnet is now live, processing hundreds of transactions every hour, smoother than ever.

Security Behind the Scenes: The Real Strength of Zeus Network

While the smooth operation of Zeus Network is impressive, its true value lies in its unwavering commitment to security. In the realm of blockchain interoperability, network security is a critical challenge that many protocols fail to address adequately.

Zeus Network stands apart by prioritizing security at every level of its cross-chain transaction process. Rather than just another vulnerable protocol, Zeus employs advanced security measures to protect against external attacks.

Central to this is an innovative consensus mechanism, where serialized Bitcoin and Solana transactions are stored within a proposal management program. Verifiers, tasked solely with verification, retrieve these transactions from the Solana network. They use a threshold signature mechanism with Bitcoin Taproot, utilizing the Schnorr signature, which is compatible with Solana’s Ed25519 signature algorithm.

By offloading signature aggregation to an off-chain process, Zeus Network significantly enhances efficiency compared to traditional on-chain voting. Additional security layers include fraud proofs and a challenge period, during which any node can submit evidence of malicious activity. Successful challenges result in slashing malicious nodes, thereby ensuring the integrity and security of all cross-chain transactions.

APOLLO

APOLLO, the first dApp built on ZPL, launched its final public testnet on August 8th, fulfilling its mission of bringing Bitcoin liquidity to Solana. This marks a historic moment for cryptocurrency, as Bitcoin becomes accessible on Solana in a permissionless manner for the first time.

With major operational features, including Bitcoin deposit and withdrawal, users can seamlessly manage cross-chain assets and prepare for the mainnet launch, where real BTC will be exchanged for zBTC on Solana.

APOLLO has already attracted over 30,000 unique wallet interactions in just 10 days.

The Different Types of BTC DeFi

As Bitcoin continues to dominate the cryptocurrency landscape, several protocols have emerged to bridge its liquidity into other ecosystems, aiming to make BTC an ideal yield-generating asset for holders. Over time, various approaches have been developed, each with distinct methodologies:

Wrapped Bitcoin (WBTC): A centralized solution where BTC is in custody by a trusted entity and represented as an ERC-20 token on Ethereum, and recently on Solana, allowing it to be used in DeFi protocols.
Stacks (sBTC): A decentralized method that integrates Bitcoin into the Stacks network, enabling BTC usage in smart contracts and DeFi applications, while maintaining Bitcoin’s security through Proof-of-Transfer (PoX).
Babylon: Enhances the security of Proof-of-Stake (PoS) chains by leveraging Bitcoin’s robust security model, acting as a final settlement layer for transactions.

These diverse approaches highlight the innovation within the BTC DeFi space, each addressing different needs and security preferences while expanding Bitcoin’s utility beyond its original blockchain.

What about zBTC from Zeus Network?

zBTC offers a fully decentralized method to communicate Bitcoin to Solana without centralized custodianship. Issued by APOLLO, the first dApp built on Zeus Program Library (ZPL), zBTC ensures that neither Zeus Network nor any other entity holds or controls users’ assets. Instead, decentralized ZeusNodes manage all transactions, maintaining a 1:1 peg with BTC and ensuring user sovereignty and security.

Custody: Decentralized through ZeusNodes, avoiding centralized control.
Blockchain: Solana
Yield Source: DeFi smart contracts and more
Market Risk: zBTC relies on smart contracts for DeFi strategies, which could be vulnerable to bugs or exploitation.

What Makes zBTC?

The key difference between zBTC and other wrapped BTC solutions lies in its permissionless and decentralized nature. zBTC ensures that users’ BTC is not held by a third party, eliminating the risks of centralized control or potential theft. Transactions are managed by ZeusNodes, offering a seamless and secure cross-chain experience that maintains user sovereignty and sets a new standard for BTC interoperability.

Trustless: Unlike WBTC, which relies on centralized custodians of the native BTC, zBTC’s decentralized model removes the need for trust in a third party.
Transparent: Because the entire process of BTC transactions and the minting of zBTC occurs fully on-chain, there is no risk of over-issuing zBTC. This ensures that every zBTC in circulation is backed 1:1 by actual BTC, providing a level of transparency and trust that mitigates the concerns associated with off-chain or centralized issuance methods.
Flexible: zBTC holders have the freedom to choose between custodial and non-custodial options, giving them full control and autonomy over their assets. This flexibility empowers users to make decisions that best align with their personal preferences and risk tolerance, ensuring they can manage their BTC in a way that suits their needs on Solana.

How Will zBTC Be Utilized?

Users deposit BTC and receive zBTC on APOLLO, which is automatically integrated into Solana’s DeFi ecosystem to generate yield. APOLLO not only facilitates the conversion of BTC to zBTC but also identifies the best strategies within Solana’s DeFi landscape to maximize returns for holders.

Use Case: Deposit BTC and receive zBTC to participate in DeFi and earn yield on Solana.

A new standard is set

zBTC represents a new frontier in Bitcoin interoperability, uniquely combining full decentralization with efficient cross-chain transactions on Solana. Its permissionless architecture and advanced security mechanisms make it an ideal choice for users prioritizing decentralization and liquidity.

Unlike centralized solutions, zBTC ensures user sovereignty, mitigating the risks associated with custodial control. By allowing Bitcoin to flow seamlessly into Solana’s ecosystem, zBTC sets a new standard for cross-chain interoperability, empowering users and paving the way for broader adoption and innovation in the DeFi space.