Midl: infrastructure for native dApp execution on Bitcoin
What is Midl and Why does it matter?
Bitcoin is widely regarded as the most secure and decentralized cryptocurrency, but its technical limitations have hindered the development of a full-fledged ecosystem of dApps. Its scripting language is extremely limited, making it nearly impossible to run complex smart contracts directly on the Bitcoin blockchain.
Today, using Bitcoin in DeFi usually involves bridging BTC to other networks (like Ethereum), minting wrapped tokens, and interacting with dApps on external blockchains. This adds complexity, increases risks (bridges are frequently hacked), and most importantly — the enormous liquidity of Bitcoin remains largely idle, unused in native DeFi. As a result, despite Bitcoin’s dominance, much of its market cap is underutilized in decentralized finance.
Ethereum-compatible chains have advanced far in DeFi, while Bitcoin remains without native application support.
Midl solves this by adding a smart contract execution layer to Bitcoin. It acts as an execution layer that enables native deployment of complex dApps directly on BTC. Users can interact with Ethereum-level smart contracts via their existing Bitcoin wallets, without bridges or switching networks. Transactions finalize in just one Bitcoin block, not six.
Midl expands Bitcoin’s functionality while preserving its security and UX, enabling DeFi, GameFi, and SocialFi on BTC.
How Midl works
Midl is an abstraction layer between Bitcoin and the EVM (Ethereum Virtual Machine). It is fully EVM-compatible, allowing developers to port dApps to Bitcoin with minimal changes, and enabling users to interact through a familiar interface without leaving the BTC network.
Key features of Midl
• No bridging: all operations are executed in one step, with a single transaction and confirmation. There’s no need to pre-transfer funds — just send BTC.
• Native dApps: applications function like on Ethereum, but use real Bitcoin via standard BTC wallets. This enables AMMs, GameFi, SocialFi, and more — natively on Bitcoin.
• Compatibility and simplicity: Midl supports EVM-based networks and familiar wallets like Unisat or MetaMask (via BTC). The UX stays seamless and intuitive.
• Scalability: supports up to 10 dApp transactions within a single BTC transaction, reducing fees and improving throughput.
Under the hood, Midl is not a separate blockchain. It uses the BTC network and introduces its own optimized consensus mechanism for contract execution.
Architecture: DPoS, Validators, and TSS Vaults
Architecture
To speed up finality and contract processing, Midl uses Delegated Proof-of-Stake (DPoS) as its consensus mechanism. A set of validator nodes is responsible for executing dApp transactions and maintaining the network. Validators are selected weekly based on total stake, including both BTC and future Midl tokens.
This enables fast transaction confirmations without waiting for multiple Bitcoin blocks.
Validators are rotated regularly and organized into groups. Each group manages a TSS Vault (Threshold Signature Scheme), a multi-signature-controlled wallet where user funds are held. No single validator can act alone — all operations require a majority signature, ensuring security and decentralization.
Validators
To become a validator, one must stake a significant amount of BTC (and eventually Midl tokens). Regular users can delegate BTC to validators, increasing their stake and earning a share of network rewards, including native BTC yield.
Validators are required to run Midl nodes, monitor the Bitcoin network, and manage TSS Vaults. Misbehavior or downtime leads to slashing (penalty of funds) — this keeps the network secure and honest.
A simplified flow of a dApp transaction in Midl
1. User initiation: The user sends BTC (or tokens like Ordinals/Runes) to a TSS Vault managed by validators. At the same time, they sign an “intent” message (which includes a BTC transaction hash) with their Bitcoin private key. Midl uses the BIP-322 standard, and private keys never leave the user’s wallet. This allows secure, native interaction with dApps.
2. Validator execution: Validators monitor the Bitcoin blockchain. Once the transaction is included in a block (only one needed), Midl registers the deposit. The validator group executes the smart contract inside the EVM layer. BTC and other assets are virtually minted inside Midl and used for the computation. Validators jointly execute the contract logic off-chain under DPoS consensus.
3. Finalization: After execution, the virtual balances are burned and validators generate real BTC transactions with the results. Users receive their assets back directly on BTC. The entire process takes about 10 minutes or less.
4. State Commit: Validators write a Merkle root to Bitcoin, proving execution state. Anyone can verify dApp results. Midl inherits Bitcoin’s security model, making it trustless.
dApp prototypes on Devnet
- Midl Swap — a Uniswap v2 fork running on Bitcoin Testnet4. Swaps Ordinals and Runes via native liquidity pools (ALP). Fully finalized on BTC.
- Midl Lending — Compound v2 fork adapted for native BTC assets. Users can lend or borrow BTC, with rates determined algorithmically. No Ethereum, no bridges.
- Midl Stable (USDB) — demo stablecoin issued directly on Bitcoin. Not pegged to fiat, but shows that stablecoins can be created and used entirely within BTC.
These prototypes run on Devnet but show that swaps, lending, and stablecoins are now possible natively on Bitcoin. Midl builds the infrastructure that turns BTC into a functional DeFi platform.
Roadmap and launch plan
Midl is preparing to launch Devnet, initially invite-only. Later, participants will be able to invite others. Eventually, it will transition into a public incentivized Testnet.
Testers will be rewarded, and a Bug Bounty Program will incentivize security reviews. This will harden the system before Mainnet.
Devnet already features live demos of Swap, Stable, and soon Lending. You can request access via the Discord community.
When Midl reaches Mainnet, we’ll see if this architecture truly holds. It will allow native dApps via BTC wallets, finally putting idle BTC liquidity to use — in farming, lending, AMMs — without leaving Bitcoin.
Midl isn’t just another Layer 2. It’s a native way to access dApps without leaving Bitcoin.
It doesn’t “turn BTC into Ethereum” — it gives tools to those who want more from BTC without compromising its security model.
If DeFi on Bitcoin ever had a shot, this is one of the first credible attempts — minimal trust assumptions, no bridges, full verifiability.
What happens next depends on how quickly the community and ecosystem respond.
Docs: midl.gitbook.io/midl
Twitter: @midl_xyz
🔹OUR BITCOIN LAYER 2 DASHBOARD
Follow us for more updates and support:
