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ARXIV:2603.26293 · DEFI INFRASTRUCTURE · SUBMITTED 30 MAR · 21:53 UTC · FRESHNESS STALE
ARXIV:2603.26293DEFI INFRASTRUCTURESUBMITTED 30 MAR · 21:53 UTCFRESHNESS STALECian Lalor · Matthew Marshall · Antonio Russo · arXiv
A trust-minimized protocol enabling native Bitcoin to participate in DeFi with self-custody, reducing trust assumptions for both protocols and depositors.
Opportunity summary
Pain A trust-minimized protocol enabling native Bitcoin to participate in DeFi with self-custody, reducing trust assumptions for both protocols and depositors.
Evidence 19 refs | 3 sources | 50% coverage
Blocker Evidence unverified
A trust-minimized protocol enabling native Bitcoin to participate in DeFi with self-custody, reducing trust assumptions for both protocols and depositors. Existing solutions depend on honest-majority thresholds, or centralized custodial entities that introduce significant trust…
Bitcoin's limited programmability and transaction throughput have historically prevented native Bitcoin from participating in decentralized finance (DeFi) applications. Existing solutions depend on honest-majority thresholds, or centralized custodial entities that introduce significant trust requirements.
ScienceToStartup currently rates this 7.0/10 on the public viability pass. 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…
DeFi Infrastructure moved forward this cycle; last verified April 2026. Public score 7.0/10. Production flags indicate code availability.
Continue into Read for claims, analysis, references, and neighboring papers.
mobile layout uses overflow-hidden min-w-0 break-wordsOpportunity summary
Score7.0Public score shown from the verified overall while the stale axis breakdown refreshesAnalysis summary
A trust-minimized protocol enabling native Bitcoin to participate in DeFi with self-custody, reducing trust assumptions for both protocols and depositors.
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Paper Pack
10.48550/arXiv.2603.26293A trust-minimized protocol enabling native Bitcoin to participate in DeFi with self-custody, reducing trust assumptions for both protocols and depositors.
Abstract
Bitcoin's limited programmability and transaction throughput have historically prevented native Bitcoin from participating in decentralized finance (DeFi) applications. Existing solutions depend on honest-majority thresholds, or centralized custodial entities that introduce significant trust requirements. 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. BSA achieves this through a combination of emulated Bitcoin covenants using Partially Signed Bitcoin Transactions (PSBTs) and Taproot scripts, a Trusted Execution Environment (TEE)-based arbitration system, and destination chain smart contracts that enable DeFi platforms to accept self-custodial Bitcoin as collateral without necessitating protocol-level modifications. The setup leverages liquidity secured by the Lombard Security Consortium which provides a twofold advantage: for a DeFi protocol, liquidators rely on fungible assets with deep liquidity to quickly exit positions, while for a depositor, the general trust assumptions of honest majority (m-of-n) are reduced to existential honesty (1-of-k). We present the complete protocol design, including the Bitcoin architecture, the TEE-based arbitration mechanism, and the Smart Account Registry for protocol management. We provide a security analysis that demonstrates the correctness, safety, and availability properties under our trust model. Our design enables native Bitcoin to serve as collateral in lending markets and other DeFi protocols without requiring users to relinquish custody of funds.
Source availability
PDF linkedThe paper record includes a public PDF URL.
Extraction status
Parse run pending anchorsA parse run id is attached, but no public source anchors are materialized yet.
Proof status
unverified19 refs; 3 sources; 50% coverage.
What was readable
Derived fallback: Estimated from adjacent evidence; not verified from source.
Viability
Time to MVP
Commercial
Export
Preparing verified analysis
Dimensions overall score 7.0
PROBLEM
A trust-minimized protocol enabling native Bitcoin to participate in DeFi with self-custody, reducing trust assumptions for both protocols and depositors. Existing solutions depend on honest-majority thresholds, or centralized custodial entities that introduce significant trust...
METHOD
Bitcoin's limited programmability and transaction throughput have historically prevented native Bitcoin from participating in decentralized finance (DeFi) applications. Existing solutions depend on honest-majority thresholds, or centralized custodial entities that introduce sign...
RESULT
ScienceToStartup currently rates this 7.0/10 on the public viability pass. 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. Code availab...
WHY NOW
DeFi Infrastructure moved forward this cycle; last verified April 2026. Public score 7.0/10. Production flags indicate code availability.
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.
This is the central thesis of the paper, explicitly stated in the abstract and title.
partial
BSA achieves this through a combination of emulated Bitcoin covenants using Partially Signed Bitcoin Transactions (PSBTs) and Taproot scripts, a Trusted Execution Environment (TEE)-based arbitration system, and destination chain smart contracts that enable DeFi platforms to accept self-custodial Bitcoin as collateral without necessitating protocol-level modifications.
The abstract clearly outlines the technical components used to achieve the goal, and the analysis confirms the use of PSBTs and Taproot scripts for covenant emulation.
partial
for a depositor, the general trust assumptions of honest majority (m-of-n) are reduced to existential honesty (1-of-k).
The abstract and a comparison table explicitly state this reduction in trust assumptions.
partial
a Trusted Execution Environment (TEE)-based arbitration system
The abstract and subsequent sections detail the role of the TEE in the arbitration process.
partial
The protocol uses four Taproot script addresses with specific spending conditions, enforced through pre-signed PSBTs exchanged during theProtocol User Setup Ceremony(Sec. 3.4.1).
The paper details the architecture and the setup process, explicitly mentioning the use of four Taproot script addresses and PSBTs.
partial
Our design enables native Bitcoin to serve as collateral in lending markets and other DeFi protocols without requiring users to relinquish custody of funds.
This is a key outcome and benefit of the BSA protocol, stated in the abstract.
partial
The setup leverages liquidity secured by the Lombard Security Consortium which provides a twofold advantage: for a DeFi protocol, liquidators rely on fungible assets with deep liquidity to quickly exit positions
The abstract and subsequent sections mention the Lombard Security Consortium and its role in providing liquidity for liquidators.
partial
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.
This is a core claim stated directly in the abstract and reinforced throughout the paper's introduction and system model.
partial
BSA achieves this through a combination of emulated Bitcoin covenants using Partially Signed Bitcoin Transactions (PSBTs) and Taproot scripts, a Trusted Execution Environment (TEE)-based arbitration system, and destination chain smart contracts that enable DeFi platforms to accept self-custodial Bitcoin as collateral without necessitating protocol-level modifications.
The abstract explicitly lists these components as key to achieving the protocol's goals, and the 'Emulated Covenant Architecture' section elaborates on this.
partial
for a depositor, the general trust assumptions of honest majority (m-of-n) are reduced to existential honesty (1-of-k).
The abstract and Table 1 directly compare the trust models, highlighting this reduction in trust assumptions for depositors.
partial
Taproot scripts were chosen for their reduced transaction size and fees, and ability to enable smart contract-like spending logic.
The 'Bitcoin Script Architecture' section explicitly states the reasons for choosing Taproot scripts.
partial
a Trusted Execution Environment (TEE)-based arbitration system, and destination chain smart contracts that enable DeFi platforms to accept self-custodial Bitcoin as collateral without necessitating protocol-level modifications.
The abstract and the 'Emulated Covenant Architecture' section both highlight the role of the TEE in the arbitration system.
partial
Paper-native neighborhood for concepts, methods, materials, markets, and competitors. Missing lanes stay labeled instead of disappearing behind commercialization gates.
Concepts
Methods
Materials
Markets
Competitors
A trust-minimized protocol enabling native Bitcoin to participate in DeFi with self-custody, reducing trust assumptions for both protocols and depositors.
Segment
DeFi Infrastructure
Adoption evidence
No public code link in the paper record yet
Commercial read
7.0/10 public viability
Direct
Adjacent
Substitute
Unknown
No indexed public discussion is attached to 2603.26293 yet. That is a visibility signal, not a blank module: the monitor is watching the public channels below.
Hacker News
Not indexed yet
Not indexed yet
Bluesky
Not indexed yet
Preview the source document here, or use the hero PDF action for a new tab.
Reference metadata is not materialized in the public index yet. The source PDF remains the authority; cache refresh is optional.
CITED BY
No citing papers are indexed in the public S2S graph yet. This is an explicit zero-signal state, not a hidden lookup.
Extension
Commercially relevant
Conflicting
Owned Distribution
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3/3 checks · 100%
Build Passport
Build passport pending - Proof Lab budget No verified cost estimate / $7.00 cap
status
missing
reason
passport_row_missing
proof status
unverified
cost/budget
No verified cost estimate
confidence low
next verification path
Build brief missing until Build Passport data exists.
Source missing: Build Passport payload.
Experiment plan missing until prototype path is available.
No prototype path attached.
Validation checklist missing until required assets, cost, and regulatory flags are verified.
No checklist artifact is attached to the Build Passport payload.
Derived signals show verified:false until source-backed receipts exist.
Evidence coverage
OpportunityKernel evidence_receipt
19 refs / 3 sources / 50% coverage
stale
Verify missing sources before using this as buyer proof. verified:false
Build readiness
BuildPassport EvidenceState
passport absent
stale
Run Proof Lab or inspect typed missing state. verified:false
Artifact maturity
GitHub and Hugging Face maturity payloads
No public artifact surface observed
stale
Open source artifacts or mark the gap as missing. verified:false
Technical feasibility
partial
Current read
Runnable path is not fully verified.
Evidence
No Build Passport payload attached.
Gaps
Next test
Run minimal reproduction from the Build Passport prototype path.
Market urgency
partial
Current read
Research evidence exists; buyer urgency still needs source proof.
Evidence
19 references, 3 sources, 50% evidence coverage.
Gaps
Next test
Collect buyer interview, deployment evidence, or cited demand signal.
Buyer clarity
missing
Current read
No budget owner is verified for this paper.
Evidence
Build tab has no CRM, procurement, or operator source.
Gaps
Next test
Map target operator, economic buyer, and procurement trigger.
Defensibility
missing
Current read
Defensibility signals are missing.
Evidence
No defensibility receipt attached.
Gaps
Next test
Refresh defensibility bars with source receipts.
Integration burden
missing
Current read
No public implementation surface observed.
Evidence
No GitHub or Hugging Face payload attached.
Gaps
Next test
Write integration checklist from prototype path and target workflow.
Capital intensity
missing
Current read
No observed cost estimate is verified.
Evidence
Cost passport has no observed_usd value.
Gaps
Next test
Run cost passport or mark the cost field not applicable.
Regulatory load
missing
Current read
No regulatory classification is attached.
Evidence
Build Passport ledger does not include regulatory flags.
Gaps
Next test
Classify regulatory flags before commercialization planning.
No named scientific founder assigned.
Paper authors are not treated as operators without consent.
People
No named person assigned.
Gaps
Next verification path
Prototype owner missing.
Build Passport does not name an implementer.
People
No named person assigned.
Gaps
Next verification path
Operator workflow not sourced.
No buyer or workflow interview attached.
People
No named person assigned.
Gaps
Next verification path
No GTM owner verified.
No CRM or outreach source attached.
People
No named person assigned.
Gaps
Next verification path
Regulatory need unclassified.
No clinical or regulatory source attached.
People
No named person assigned.
Gaps
Next verification path
ARTIFACTS
No public artifacts yet.
DEFENSIBILITY
Defensibility and confidence evidence pending.
WATCHTOWER
No verified watchtower monitor rows yet.
FORESIGHT
No prediction yet — minted on next Foresight batch.
OPPORTUNITYKERNEL CHANGES SINCE LAST VIEW
No verified OpportunityKernel changes since the last view.
COMPETITIVE LANDSCAPE UPDATES
No verified competitive landscape changes yet.
RELATED PAPER UPDATES
No verified related paper changes yet.
SIGNAL CANVAS HISTORY AND DELTAS
No Signal Canvas history deltas yet.
TIMELINE
Save this paper to start tracking momentum - commits, demos, and score changes appear here.
No tracked events yet.
Score trend will appear after multiple data points.
BUZZ
Buzz trend pending.