AuraLink Protocol Logo

Executive Summary

AuraLink is a groundbreaking Bitcoin staking and restaking protocol that bridges Bitcoin's unparalleled security and liquidity to Proof-of-Stake networks, unlocking the dormant potential of over $1 trillion in Bitcoin assets.

Key Innovation

AuraLink introduces the first trustless Bitcoin staking mechanism that allows Bitcoin holders to earn yield while maintaining full custody of their assets. Through innovative use of Bitcoin's native script capabilities and Liquid Restaking Tokens (LRTs), we enable Bitcoin to secure multiple PoS chains simultaneously.

Core Value Proposition

  • Trustless Bitcoin staking without wrapping
  • Enhanced yield opportunities for Bitcoin holders
  • Shared security for PoS networks
  • Liquid restaking tokens for DeFi integration

Key Metrics

  • Token Supply: 100,000,000,000 AuraLink
  • TGE: Q1 2025 (Expected)
  • Mainnet Launch: Q1 2026
  • Target Market: $1T+ Bitcoin assets

Market Opportunity

Bitcoin represents over 50% of the total cryptocurrency market cap, yet remains largely inactive in the DeFi ecosystem. AuraLink addresses this $1+ trillion opportunity by creating the infrastructure for Bitcoin to participate in staking while maintaining its security properties.

Competitive Advantages

Feature AuraLink Traditional Solutions
Custody ✅ Self-custodial ❌ Third-party custody
Bitcoin Native ✅ Native Bitcoin scripts ❌ Wrapped tokens
Liquidity ✅ Liquid Restaking Tokens ❌ Locked assets
Multi-chain Security ✅ Multiple PoS chains ❌ Single chain focus

CEO Message

Dear Bitcoin Community Members, Esteemed Investors, and All Innovators with Dreams of Progress:

Today, with tremendous excitement, I am honored to present AuraLink to you—not merely a technical protocol, but a grand vision for building the decentralized financial future together. For a long time, Bitcoin has been hailed as the digital gold of the digital world with its unbreakable security, and its value storage properties are deeply rooted in people's hearts. However, in today's rapidly changing blockchain technology landscape, we clearly see that Bitcoin's potential goes far beyond this. It contains enormous liquidity and security, waiting to be activated to provide unprecedented economic support for broader Proof-of-Stake networks.

AuraLink was born to break down the barriers between Bitcoin and the thriving decentralized finance (DeFi) world. We understand that trillions of dollars worth of Bitcoin assets globally, like sleeping giants, have not yet fully participated in the innovative wave of Web3. Through AuraLink, we will empower every Bitcoin holder with new capabilities: safely and efficiently utilizing their valuable assets for staking and restaking without sacrificing Bitcoin's core security properties. This will not only bring them substantial additional returns but also inject Bitcoin-level strong security guarantees into the entire blockchain ecosystem.

Our journey officially began in Q2 2025, and we are currently in the critical stage of core R&D. We firmly believe that with our team's persistent pursuit of innovative technical architecture, meticulous crafting of rigorous economic models, and unwavering commitment to security and compliance, AuraLink will become a milestone in the Bitcoin DeFi field. Our native token AuraLink is expected to launch gloriously in Q1 2025, serving not only as the cornerstone of protocol decentralized governance but also as the core engine of ecosystem value capture.

We sincerely invite all like-minded partners, whether you are a faithful supporter of Bitcoin, an explorer in the DeFi field, or an innovator full of hopes for the future, to join AuraLink's great journey. Let us move forward hand in hand to build a more interconnected, efficiently operating, and unbreakable decentralized future. Let Bitcoin's magnificent energy shine in DeFi's infinite possibilities!

Sincerely,
CEO of AuraLink

Project Overview: AuraLink's Vision and Mission

AuraLink represents a revolutionary approach to bridging Bitcoin with the decentralized finance world. This section provides a comprehensive overview of our project's foundation and strategic direction.

AuraLink's Grand Vision and Core Mission

AuraLink's grand vision is to become the key hub connecting Bitcoin with the decentralized financial world, completely unleashing Bitcoin's enormous potential as the world's most secure and decentralized digital asset. We are not satisfied with Bitcoin merely serving as a store of value; we hope it can become the core driving force for future Proof-of-Stake network security and decentralized finance (DeFi) innovation. Our core mission is to build an extremely secure, highly efficient, and completely trustless Bitcoin staking and restaking infrastructure. Through this infrastructure, we will provide millions of Bitcoin holders worldwide with unprecedented asset appreciation opportunities while providing Bitcoin-level, unbreakable security guarantees for Proof-of-Stake chains that rely on external security.

Technical Architecture: Building the Bridge Between Bitcoin and Proof-of-Stake World

AuraLink's technical architecture represents a groundbreaking approach to connecting Bitcoin with Proof-of-Stake networks. Our design emphasizes security, efficiency, and decentralization while maintaining Bitcoin's core principles.

Core Design Philosophy: Security, Native, Scalability

AuraLink's technical architecture is not just a pile of code; it embodies our deep understanding and firm belief in the future interconnection of blockchain. Our core design philosophy can be summarized in three key words:

  • Security: Any innovation related to Bitcoin must have unparalleled security as its primary prerequisite
  • Native: Maximize the use of Bitcoin mainchain's native characteristics, reducing dependence on any intermediate layers or wrapped tokens
  • Scalability: Build a system that is both robust and flexible, capable of providing Bitcoin-level economic security guarantees for various Proof-of-Stake chains

Core Problems and AuraLink's Innovative Solutions

The Bitcoin Dormancy Problem

Problem Statement:

Bitcoin, with over $1 trillion in market capitalization, remains largely excluded from the DeFi ecosystem due to its Proof-of-Work consensus mechanism. This creates three critical issues:

  • Capital Inefficiency: Bitcoin holders cannot earn yield on their assets
  • Security Underutilization: Bitcoin's unmatched security cannot protect other networks
  • Ecosystem Fragmentation: Separation between Bitcoin and DeFi innovation

Market Analysis

Asset Class Market Cap DeFi Integration Yield Opportunities
Bitcoin $1.0T+ ❌ Limited ❌ Minimal
Ethereum $300B+ ✅ Native ✅ Extensive
Other PoS $200B+ ✅ Growing ✅ Moderate

AuraLink's Comprehensive Solution Framework

1. Bitcoin Native Locking Protocol

Technical Approach: Utilize Bitcoin's native script capabilities including OP_CHECKLOCKTIMEVERIFY and OP_CHECKSEQUENCEVERIFY to create trustless time-locked contracts.

  • No wrapped tokens or bridges required
  • Funds remain on Bitcoin mainnet
  • Cryptographically verifiable unlock conditions
  • Compatible with existing Bitcoin infrastructure

2. Shared Security Architecture

Innovation: Create a marketplace where PoS chains can rent Bitcoin's economic security through validated staking mechanisms.

  • Multi-chain validator networks
  • Slashing mechanisms for misbehavior
  • Proportional security guarantees
  • Economic incentive alignment

3. Liquid Restaking Token (LRT) System

Capital Efficiency: Issue liquid tokens representing staked Bitcoin positions, enabling DeFi participation while maintaining staking rewards.

  • 1:1 redeemable for underlying Bitcoin
  • Transferable and composable in DeFi
  • Automated yield distribution
  • Risk-adjusted pricing mechanisms

4. Decentralized Governance Framework

Community Control: AuraLink holders govern protocol parameters, validator selection, and ecosystem development.

  • On-chain voting mechanisms
  • Proposal and execution systems
  • Multi-signature security councils
  • Emergency response protocols

AuraLink's Core Competitive Advantages

Unparalleled Bitcoin Native Security

By implementing trustless asset locking on the Bitcoin mainchain, minimizing dependence on any third-party custody or complex smart contracts.

Revolutionary Capital Efficiency Enhancement

Through the introduction of Liquid Restaking Tokens (LRTs), achieving "dual utilization" of user assets.

Extensive and Deep Ecosystem Connectivity

Designed with high universality and scalability, aiming to support and connect multiple mainstream Proof-of-Stake chains.

Unwavering Decentralization Principles

Protocol design strictly adheres to decentralization principles, ensuring users have complete and inalienable control over their Bitcoin assets.

Bitcoin Native Locking Mechanism: The Foundation of Trustlessness

The cornerstone of the AuraLink protocol lies in its revolutionary Bitcoin native locking mechanism. We don't simply "wrap" Bitcoin; instead, we deeply explore the powerful potential of Bitcoin script language, particularly its Timelock opcodes, to achieve completely non-custodial Bitcoin locking.

Specific Technical Implementation:

  • Timelocked Outputs: Users send Bitcoin to a special Bitcoin script address, implemented through opcodes like `OP_CHECKLOCKTIMEVERIFY` (CLTV) or `OP_CHECKSEQUENCEVERIFY` (CSV).
  • Multi-signature and Threshold Signatures: Employing advanced multi-signature or more complex threshold signature schemes to control these locked addresses.
  • Trustless Verification: The status of staked Bitcoin is completely publicly verifiable on the Bitcoin mainchain.

Proof-of-Stake Chain Integration: Ecosystem Network of Shared Security

The AuraLink protocol seamlessly integrates with various Proof-of-Stake chains through a carefully designed and standardized set of interfaces and mechanisms, providing them with Bitcoin-level shared security.

Integration Mechanisms:

  1. Registration and Configuration of Proof-of-Stake Chains: Any Proof-of-Stake chain hoping to utilize Bitcoin security can register as a consumer of the protocol through AuraLink's decentralized governance process.
  2. Rigorous Slashing Mechanism: When validators on integrated Proof-of-Stake chains exhibit malicious behavior, the AuraLink protocol will immediately trigger slashing events.
  3. Automated Reward Distribution: Proof-of-Stake chains will distribute rewards to participants who stake Bitcoin through AuraLink based on their own consensus mechanisms and protocol rules.

Liquid Restaking Layer: Unlocking Infinite Possibilities of Capital Efficiency

To further enhance capital efficiency and optimize user experience, AuraLink will build an innovative liquid restaking layer. This layer allows users to obtain Liquid Restaking Tokens (LRTs) representing their staking rights while staking Bitcoin.

Core Functions of LRT:

  • LRT Minting and Redemption
  • Core of DeFi Interoperability
  • Risk Isolation and Aggregation Strategies

Token Economics: The Value Engine Driving AuraLink Ecosystem

Core Role of AuraLink

Token Basic Information

Total Supply: 100,000,000,000 AuraLink

Token Generation Event: Q1 2025 (Expected)

Core Functions of AuraLink:

  • Foundation of Decentralized Governance: AuraLink holders will have ultimate governance rights over the AuraLink protocol
  • Core of Staking and Security Assurance: Independent validator network members need to stake substantial amounts of AuraLink
  • Catalyst for Incentives and Rewards: AuraLink will serve as the primary tool for incentivizing all ecosystem participants
  • Engine for Fee Payment and Value Capture: The protocol will collect fees from its provided services

Token Generation Event (TGE) and Distribution Schedule

TGE Overview

  • Token Name: AuraLink
  • Total Supply: 100,000,000,000 AuraLink (Fixed Supply)
  • TGE Date: Q1 2025 (Expected)
  • Initial Circulating Supply: 20,500,000,000 AuraLink (20.5%)
  • Network: Multi-chain (Ethereum, Bitcoin Layer 2)

Token Allocation Overview

Category Allocation (%) Amount (AuraLink) TGE Release (%) TGE Amount Cliff Period Vesting Duration
Community & Ecosystem 45% 45.00B 35% 15.75B 3 months 60 months linear
Ecosystem Development 20% 20.00B 5% 1.00B 6 months 48 months linear
Core Team & Advisors 15% 15.00B 0% 0 12 months 36 months linear
Strategic Investors 15% 15.00B 25% 3.75B 6 months 18 months linear
Treasury Reserve 5% 5.00B 0% 0 12 months 24 months linear

Detailed Vesting Schedule

Community & Ecosystem (45% - 45.00B AuraLink)

  • Staking Rewards: 70% (31.50B AuraLink) - Released based on protocol participation
  • Liquidity Mining: 20% (9.00B AuraLink) - Incentivize LRT liquidity
  • Governance Incentives: 10% (4.50B AuraLink) - Reward active governance participation

Release Schedule: 3-month cliff, then linear release over 60 months (5 years)

Ecosystem Development (20% - 20.00B AuraLink)

  • Partnership Grants: 40% (8.00B AuraLink) - Strategic PoS chain partnerships
  • Developer Grants: 30% (6.00B AuraLink) - Protocol development incentives
  • Marketing & Growth: 20% (4.00B AuraLink) - Community building and adoption
  • Research & Audits: 10% (2.00B AuraLink) - Security and R&D investments

Release Schedule: 5% at TGE, 6-month cliff, then linear release over 48 months

Core Team & Advisors (15% - 15.00B AuraLink)

  • Core Team: 80% (12.00B AuraLink) - Founding team and key employees
  • Strategic Advisors: 20% (3.00B AuraLink) - Technical and business advisors

Release Schedule: 12-month cliff, then linear release over 36 months

Performance Milestones: 50% tied to protocol milestones achievement

Token Release Timeline

Circulating Supply Projection

  • At TGE (Month 0): 20.50B AuraLink (20.5%)
  • Month 6: 25.78B AuraLink (25.78%)
  • Month 12: 31.79B AuraLink (31.79%)
  • Month 24: 43.82B AuraLink (43.82%)
  • Month 36: 63.76B AuraLink (63.76%)
  • Month 60: 100.00B AuraLink (100%)

Token Utility and Value Accrual

Primary Utilities

  • Protocol governance voting rights
  • Validator staking requirements
  • Fee payment and discounts
  • Yield farming rewards

Value Accrual Mechanisms

  • Protocol fee revenue sharing
  • Token burn from excess fees
  • Staking yield distribution
  • Buyback and burn programs

Important Notes

  • All vesting schedules are subject to performance milestones and governance approval
  • Token prices and valuations are illustrative and subject to market conditions
  • Circulating supply may vary based on actual protocol adoption and staking participation
  • This token distribution is designed to ensure long-term protocol sustainability and decentralization

Sustainable Business Model and Diversified Revenue Sources

Protocol Fees

Extract a certain percentage of fees from the yields generated by Bitcoin staking and restaking

LRT Service Fees

Charge minimal fees for the minting and redemption of liquid restaking tokens

Value Cycle and Long-term Sustainable Growth Flywheel

  1. Protocol Adoption and Revenue Growth
  2. Value Capture and Deflationary Mechanisms
  3. Incentive Enhancement and Network Effects
  4. Ecosystem Prosperity and Value Reinvestment

Implementation Roadmap: Every Step from Vision to Reality

AuraLink's development follows a phased approach, with each milestone building upon previous achievements while maintaining the highest standards of security and decentralization.

Phase 1: Foundation & Proof of Concept (Q3 2024 - Q4 2024) (Expected)

Primary Goal: Establish core infrastructure and validate technical feasibility

Technical Milestones:
  • ✅ Bitcoin script implementation for native locking
  • ✅ Multi-signature wallet infrastructure
  • ✅ Basic slashing mechanism prototype
  • ✅ LRT minting/burning smart contracts
Key Deliverables:
  • MVP on Bitcoin testnet
  • Core team assembly (15+ engineers)
  • Security audit initiation
  • Initial whitepaper publication
Success Metrics:
  • 1,000+ BTC locked on testnet
  • Zero critical vulnerabilities found
  • Sub-10 minute transaction finality

Phase 2: Testnet Launch & Community Building (Q1 2025 - Q2 2025) (Expected)

Primary Goal: Open protocol to public testing and build developer ecosystem

Technical Milestones:
  • Public testnet deployment
  • PoS chain integration (3+ networks)
  • Advanced LRT features implementation
  • Governance token deployment (AuraLink)
Community & Ecosystem:
  • Developer documentation and SDKs
  • Bug bounty program ($500k+ pool)
  • Partnership agreements with 5+ PoS chains
  • Community governance framework
Success Metrics:
  • 10,000+ BTC equivalent locked
  • 1,000+ active community members
  • 50+ development contributors
  • 99.9% uptime on testnet

Phase 3: Mainnet Launch & Initial Operations (Q4 2025 - Q1 2026)

Primary Goal: Deploy production-ready protocol with initial PoS integrations

Launch Prerequisites:
  • Comprehensive security audits (3+ firms)
  • Formal verification of critical components
  • Economic model validation
  • Regulatory compliance framework
Launch Features:
  • Bitcoin mainnet integration
  • Initial PoS chain partners (Ethereum, Polygon, Avalanche)
  • LRT trading on major DEXs
  • Governance portal and voting mechanisms
Success Metrics:
  • $100M+ total value locked (TVL)
  • 1,000+ unique stakers
  • 5+ integrated PoS chains
  • $10M+ in protocol fees generated

Phase 4: Ecosystem Expansion & Innovation (Q2 2026+)

Primary Goal: Scale globally and achieve full decentralization

Advanced Features:
  • Cross-chain LRT composability
  • Automated yield optimization strategies
  • Advanced derivatives and structured products
  • Institution-grade custody solutions
Ecosystem Development:
  • Layer 2 scaling solutions
  • Mobile and hardware wallet integrations
  • Traditional finance (TradFi) partnerships
  • Global regulatory compliance
Long-term Vision (2027-2030):
  • $10B+ TVL across 20+ chains
  • Complete protocol decentralization
  • Self-sustaining ecosystem growth
  • Industry standard for Bitcoin DeFi

Risk Mitigation Strategy

Each phase includes comprehensive risk assessments, with go/no-go decisions based on security audits, community feedback, and market conditions. We prioritize security over speed, ensuring each milestone meets our rigorous standards before progression.

Risks and Compliance: Proceeding with Caution, Building Trust Together

Important Notice

AuraLink is committed to building an extremely secure, highly transparent, and strictly compliant Bitcoin staking and restaking platform. However, any cutting-edge blockchain project will inevitably face a series of inherent technical, economic, and regulatory risks.

Technical Risks

High Risk Smart Contract Vulnerabilities

AuraLink protocol's core functionality is implemented through complex smart contracts, including Bitcoin locking, reward distribution, slashing mechanism, and LRT token minting and redemption. The complexity of smart contracts may introduce potential programming errors, logical flaws, or unexpected behavior, which, if exploited maliciously, could lead to user asset loss, protocol malfunction, or even system collapse.

Mitigation Measures:

  • Multi-round independent security audits by top blockchain security companies
  • Formal verification methods to mathematically prove key logic
  • High-reward bug bounty program to incentivize white-hat hackers
  • 24/7 real-time monitoring system

Medium Risk Protocol Errors or Failures

Even if smart contracts themselves are free of vulnerabilities, design flaws, compatibility issues with external systems, or operational failures under specific extreme conditions may lead to unintended results, such as asset unredeemable, reward calculation errors, or improper slashing.

Medium Risk Oracle Risk

AuraLink protocol may need to rely on decentralized oracles to obtain off-chain data. If oracle data is inaccurate, delayed, or manipulated, it could lead to erroneous decisions by the protocol.

Economic and Market Risks

High Risk Market Volatility Risk

Bitcoin and other cryptocurrencies have volatile price movements. The value of Bitcoin users have staked may decrease significantly due to market downturns. Although AuraLink provides staking yields, if the underlying asset price falls below the yield, users may still suffer net losses. AuraLink's price may also be affected by market sentiment, macroeconomic factors, and industry competition.

Risk Management Suggestions:

  • Clearly and transparently disclose market volatility risks
  • Encourage users to make decisions based on their risk tolerance
  • Provide a variety of risk management tools
  • Establish a healthy tokenomics model

High Risk Slashing Risk

Validators participating in the proof-of-stake chain who behave improperly will have their staked assets slashed by the protocol. For Bitcoin staked through AuraLink, there is also a risk of being slashed. Especially in the re-staking mode, assets may face slashing risks from multiple protocols simultaneously.

Medium Risk Liquidity Risk

In extreme market conditions, LRTs may have insufficient liquidity, making it difficult for users to redeem their underlying assets at the expected price or in a timely manner.

Regulatory and Compliance Risks

High Risk Securities Classification Risk

AuraLink or the staking services provided by AuraLink may be deemed securities by regulatory authorities in certain jurisdictions. If this occurs, the project will need to comply with strict securities laws, which may result in high compliance costs, operational restrictions, or even legal litigation.

Response Strategies:

  • Hire international renowned legal advisory teams for legal analysis
  • Stay closely informed of global regulatory developments
  • Build a decentralized, utility-driven token model
  • Actively communicate with regulatory authorities

Medium Risk Anti-Money Laundering (AML) and Know Your Customer (KYC) Requirements

With the popularity of decentralized finance, regulatory authorities are increasingly concerned about its compliance with anti-money laundering and counter-terrorist financing.

Medium Risk Tax Compliance

Tax treatment of staking rewards varies significantly across jurisdictions and is complex. Users may not be fully aware of their tax obligations for staking rewards, which may lead to compliance risks.

Conclusion: Creating a Brilliant Future for Bitcoin DeFi Together

AuraLink is not merely a technical protocol; it is the crystallization of our deep insights and firm commitment to the future decentralized financial world. We stand at the forefront of the convergence of Bitcoin and decentralized finance, dedicated to unlocking Bitcoin's enormous potential as the world's most secure and decentralized digital asset, making it the core force driving future Proof-of-Stake network security and DeFi innovation.

We understand that building such a grand and transformative project is full of infinite opportunities while accompanied by unprecedented challenges. However, with our persistent pursuit of innovative technical architecture, meticulous crafting of rigorous token economics design, firm execution of clear implementation roadmaps, and unwavering commitment to security and compliance, we have full confidence in overcoming these challenges and ultimately realizing the grand vision we have outlined.

The significance of AuraLink goes far beyond its technology itself. It is a vibrant ecosystem jointly built by global Bitcoin holders, Proof-of-Stake chains seeking stronger security, passionate developers, and the broader global community. We firmly believe that by empowering Bitcoin, we will bring unprecedented liquidity, unparalleled security, and more efficient interoperability to the entire blockchain world, thereby accelerating the popularization and innovation of decentralized finance and ultimately building a more open, free, and inclusive financial system.

We sincerely invite all partners who are passionate about the future, curious about technology, and deeply believe in decentralized principles to join AuraLink's great journey. Whether you are a staker hoping to activate "sleeping" Bitcoin assets, a holder optimistic about AuraLink's long-term value, an ecosystem developer eager to showcase your talents in the Bitcoin DeFi field, or even just an observer following our progress, every one of your attentions and participations will be the key driving force for AuraLink's success.

Let us move forward hand in hand to open a new chapter in Bitcoin DeFi and build a more interconnected, efficient, and secure digital future.

Thank you for taking the time to read this whitepaper. We look forward to witnessing AuraLink's brilliance with you and writing a new chapter in blockchain history together.

AuraLink Team

July 18, 2025

References and Further Reading

This whitepaper builds upon extensive research in blockchain technology, cryptographic protocols, and decentralized finance. The following references provide additional context and technical foundations for AuraLink's innovations.

Foundational Papers

Title Authors Year Relevance
Bitcoin: A Peer-to-Peer Electronic Cash System Satoshi Nakamoto 2008 Foundation of Bitcoin protocol and script capabilities
Ethereum Whitepaper Vitalik Buterin 2013 Smart contract foundations and PoS mechanisms
Proof of Stake: How I Learned to Love Weak Subjectivity Vitalik Buterin 2017 PoS security models and economic incentives
A Proof-of-Stake Protocol For Consensus on Bitcoin Subchains Strobl et al. 2016 Bitcoin-based PoS mechanisms

Technical Specifications

DeFi and Restaking Research

Regulatory and Compliance

Academic Research

Ongoing Research Collaborations

AuraLink maintains active research partnerships with leading academic institutions to advance the state of Bitcoin DeFi:

  • Stanford Blockchain Research Center
  • MIT Digital Currency Initiative
  • UC Berkeley RISELab
  • ETH Zurich Applied Cryptography Group

Open Source Contributions

AuraLink is committed to open-source development and contributing to the broader blockchain ecosystem:

Disclaimer

This whitepaper is for informational purposes only and does not constitute investment advice, financial advice, trading advice, or any other sort of advice. You should not treat any of the content as such. AuraLink does not recommend that any cryptocurrency should be bought, sold, or held by you. Please conduct your own due diligence and consult your financial advisor before making any investment decisions.