OmniChain Protocol Bitcoin Stables: Taha Abbasi's BTC Stablecoin Integration

Taha Abbasi, CTO of Ferrum Network, authored this technical documentation. View original: Bitcoin Stables on Notion

The Problem

Bitcoin lacks native stablecoin infrastructure, forcing users into wrapped solutions or custodial alternatives.

Technical Documentation

Overview

The idea is to utilize the vast integrated Omnichain Liquidity infrastructure to unlock accessibility of the Bitcoin network for the world. Taha Abbasi and the Ferrum team are doing this by utilizing Stacks Infrastructure to bring Bridgeable USDC to Bitcoin along with all other assets from every integrated chain as Runes. This requires an upgrade to the Runes Protocol which the team will contribute to working together in collaboration with the Ordinals Bot team.

By making Runes Mintable, Burnable and Pausable the team introduce key fungible elements adding to the usability of Runes by enabling dynamic supply management and interoperability functionality.

Powered by Omnichain Liquidity and omniSwaps Runes are then tradeable across Bitcoin L1, Bitcoin L2, and every integrated EVM and non-EVM chain ecosystem through the Stacks ←→ Omanichain Protocol integration. This includes stable coins and alt coin assets.

Problem Statement

• Bitcoin lacks native support for stablecoins and cross-chain asset transfers, limiting its utility in DeFi applications
• Current bridging solutions are fragmented, creating liquidity silos and poor user experience across Bitcoin L1, L2s, and other blockchain ecosystems
• The Runes protocol, while innovative for fungible tokens on Bitcoin, lacks key features like mintable/burnable capabilities needed for bridged assets
• Users cannot easily access USDC and other stablecoins on Bitcoin without relying on centralized custodians or wrapped token solutions

Proposed Solution

• Integrate Circle’s Cross-Chain Transfer Protocol (CCTP) with Omnichain Protocol to enable native USDC transfers to Bitcoin via Stacks
• Upgrade the Runes Protocol in collaboration with Ordinals Bot team to support mintable, burnable, and pausable functionality
• Deploy bridged USDC and other assets as Runes tokens on Bitcoin, backed by CCTP’s burn-and-mint mechanism
• Leverage Omnichain Liquidity infrastructure to enable seamless trading of Runes across Bitcoin L1, Bitcoin L2s, and all integrated EVM and non-EVM chains
• Create a unified liquidity layer using omniSwaps that connects Bitcoin’s ecosystem to 50+ integrated blockchain networks

Success Criteria

Success means achieving seamless USDC transfers to Bitcoin as Runes with $100M+ in total value locked within 6 months of launch. Users should be able to bridge USDC from any supported chain to Bitcoin in under 5 minutes with minimal fees. The solution maintains 99.9% uptime and demonstrates clear product-market fit through sustained daily active usage and integration by at least 3 major Bitcoin DeFi protocols.

User Stories

• As a Bitcoin user, I can bridge USDC from Ethereum, Arbitrum, or any integrated chain directly to Bitcoin L1 as a Runes token
• As a DeFi trader, I can swap between USDC Runes and other Runes tokens on Bitcoin using omniSwaps with competitive pricing
• As a developer, I can integrate CCTP-backed Runes into my Bitcoin application with clear documentation and SDK support
• As a liquidity provider, I can provide liquidity for USDC Runes pairs across multiple chains and earn yield
• As an institutional user, I can move large amounts of USDC to Bitcoin trustlessly using Circle’s native CCTP infrastructure

Scope

Requirements

• Upgrade Runes Protocol to support mint, burn, and pause functions for bridge operators
• Integrate Circle’s CCTP with Stacks infrastructure to enable USDC bridging to Bitcoin
• Deploy USDC as a Runes token on Bitcoin mainnet with proper collateralization mechanisms
• Build Stacks ←→ Omnichain Protocol bridge contracts and relayer infrastructure
• Implement omniSwaps integration for USDC Runes trading across all supported chains
• Create user-facing bridge UI for USDC transfers to/from Bitcoin
• Conduct security audits of upgraded Runes protocol and bridge contracts
• Establish monitoring and alerting systems for bridge operations
• Develop documentation and SDKs for developers integrating USDC Runes

Non-Requirements

• Creating new stablecoin alternatives to USDC (initial focus is USDC only via CCTP)
• Building consumer wallet applications (integrate with existing Bitcoin wallets)
• Supporting non-fungible Ordinals or BRC-20 tokens in the initial launch
• Providing fiat on/off ramps (users can utilize existing Circle/USDC infrastructure)
• Developing standalone Bitcoin L2 solution (leverage existing L2s through Omnichain Protocol)

Impact & Significance

Taha Abbasi’s Bitcoin Stables architecture brings USDC and other stablecoins to Bitcoin via Runes, enabling native Bitcoin DeFi without custodial bridges.

Authored by Taha Abbasi, CTO at Ferrum Network. View on Notion | Taha Abbasi YouTube