Gaming Bitcoin's Edge: On-Chain Yields, Runes, and Interoperability Strategies

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Omnity Network
@OmnityNetworkAug 21, 2025

The Spaces convened builders across the Bitcoin DeFi and ICP ecosystems to discuss on-chain yield design, seamless user onboarding, product-first development, and the emerging role of AI-assisted app creation. Ray (Taiki) detailed dual yield tracks via LP fees and provably fair on-chain mini-games. Clueless (Kairos) outlined a prediction market model with LPs/AMMs and LVR to manage skew and enable fee-based yield. Mark (Hightower) focused on aggregating cross-chain strategies and simplifying UX, while Shaf (Oviata) emphasized passkey-native, chain-agnostic self-custody to remove seed phrase friction and unify identities across chains. Kyle Lang (DFINITY/ICP) stressed flexibility and security so builders can ship the exact products they envision, citing Liquidium and Odin as design points and advocating “product over stack.” Scott (RadFi) introduced a fully L1, 2-of-2 multisig trading/launch experience and a rapid iteration roadmap (charts, creator configurability). The group explored Caffeine AI’s “vibe coding” to unlock utility for runes via token-gated arcades, Tamagotchi-style games, and bots, making Bitcoin apps more playful and sticky. The session closed with calls to build for people, prioritize fun and utility to attract newcomers, and meet at Rinse Asia 2025 in Hong Kong on Aug 27.

Runes Asia Preheat # 2 — Full Session Notes

Participants and roles (from introductions)

  • Host: Kim (organizer/moderator of Runes Asia preheat # 2)
  • Kyle Lang — Data & Analytics at DFINITY (Internet Computer/ICP); helps build the Bitcoin ecosystem on ICP
  • Scott — Founder of Radfi (Runes-focused L1 mint/trade product on Bitcoin)
  • Ray — Founder of Taiki (transcribed variably as Tiki/Taike/Turkey); a next‑gen Runes + Bitcoin DEX with games and yield
  • Mark Natalia — High Tower (multi‑chain infra/validator + “Bitcoin board/port” onboarding product)
  • Shaf (transcribed as Chef/Shelf) — Oviata; passkey‑native, chain‑agnostic self‑custody wallet infra (Bitcoin‑first; supports EVM, Solana, Ripple, L2s)
  • “Clueless” — from Kairos (Runes/BTC‑denominated prediction markets)

Note: Several project and name spellings were inconsistently transcribed (e.g., Taiki/Tiki/Taike, Oviata/Oviato, High Tower/High Power). The summaries below reflect what speakers stated about their products, features, and roadmaps.

Session framing and event context

  • This is Runes Asia preheat # 2, one week before Runes Asia 2025 (Aug 27, Hong Kong). Topics: gaming, Bitcoin, on‑chain yields, Runes, and interoperability.
  • Speakers span wallets, DEXs, prediction markets, infra, and ICP builders — a cross‑section of Bitcoin DeFi ("BTCFi").

On‑chain yield: models, mechanisms, and value propositions

  • Ray (Taiki, Runes + BTC DEX):

    • Two yield paths for users:
      1. Liquidity provision on trading pools created post‑launch. After a successful Runes token launch, the platform autogenerates a liquidity pool (pair: Runes <-> BTC). LPs earn a share of trading fees — 0.3% per trade goes to LPs.
      2. On‑chain, probability‑based mini‑games (e.g., coin‑flip) powered by ICP’s on‑chain randomness for provable fairness (true 50/50 odds). Users can stake as the “house” (liquidity provider to the games) and accrue the platform’s 3% operational fee per play, proportional to stake.
    • Design goal: let token creators launch easily and let token holders both trade and use tokens in games on the same platform — creating utility and yield in‑platform.

  • “Clueless” (Kairos, BTC‑denominated prediction markets):

    • Working to refine market structures so users can realize PnL before resolution (sell options early) via AMMs and LPs in BTC.
    • Challenge: Unlike standard pairs, near‑resolution markets skew heavily to one side. To protect LPs and sustain markets, Kairos will use LVR (loss value rebalancing) and related mechanisms.
    • Objective: permissionless market creation with robust liquidity and fee‑driven yields for LPs, while enabling traders to enter/exit dynamically.

  • Mark (High Tower, multi‑chain infra):

    • Perspective across >20 networks, including Bitcoin: BTC/Runes DeFi primitives and aggregators are still thin (e.g., limited aggregator coverage for Runes/Bitcoin yield).
    • High Tower is focusing on:
      • Strategy aggregation and discovery: inform users about available yield strategies (e.g., arbitrage, LPing) and provide simplified, “one‑click” style access where possible.
      • UX that abstracts complexity; help users choose strategies without wrestling with chain/tooling friction.

  • Shaf (Oviata, wallet infra):

    • Wallet UX is central to unlocking yield adoption. Oviata offers passkey‑based, self‑custody wallets (WebAuthn/Passkey), chain‑agnostic, with a single ID across networks.
    • Users log in with Face ID/YubiKey/etc.; no seed phrases to memorize. The same identity seamlessly spans Bitcoin and EVM/Solana/Ripple dApps, enabling quick onboarding ("under 5 seconds").
    • Bitcoin‑first approach, but chain‑agnostic support increases flexibility for multi‑chain yield opportunities.

Platform philosophy: product‑first and ICP’s role

  • Kyle (DFINITY/ICP):
    • Core ICP aim: most flexible and secure platform to build Bitcoin apps without forcing product‑breaking trade‑offs. Let builders choose their own points on the blockchain trilemma.
    • Examples of differing architectures:
      • Liquidium: L1 Bitcoin app that uses ICP for pre‑signed BTC transactions — ICP serves as a logic layer while keeping state on Bitcoin L1.
      • Odin: prioritized speed and a Solana‑like UX, optimizing performance via different architectural trade‑offs.
    • Industry message: prioritize product and market fit over the tech stack debates; the market will reward great products.
    • Called out Radfi as a product‑led success — shipping quickly and iterating with users.

Radfi deep‑dive: L1 design, UX, and roadmap

  • Scott (Radfi):
    • Positioning: “best place to mint and trade Bitcoin tokens,” currently Runes‑first, with Atomicals and potential BRC‑20 v2 under observation.
    • Security/UX model: fully Bitcoin L1. When users deposit into a Radfi trading wallet, it’s a 2‑of‑2 multisig — user is one signer; Radfi is the other. Users retain control ("still your keys"), and Radfi’s co‑signature expires periodically (must be refreshed), enabling fast trading UX with L1 security assumptions.
    • Launchpad design (current): standardized token economics — 1B supply; 80% available to mint; 20% paired into initial liquidity using mint proceeds. Intent: reduce network spam and reallocate costs to market‑making (more sustainable liquidity for newly minted tokens).
    • Roadmap priorities (based on user demand):
      • Charts for new tokens (screenshots, live buy/sell visualization).
      • Launchpad flexibility: airdrops, team premine options, varied incentive schemes (beyond the current standard template).
      • Better discovery/alerts for hot mints.
      • Maintain “fun” and engaging UX (animations, visuals, transaction visualizers) to extend the game and keep users engaged.

Onboarding EVM users to Bitcoin: UX constraints and solutions

  • Shaf (Oviata):

    • Biggest hurdle for mass self‑custody adoption is seed‑phrase complexity and onboarding friction. Passkey‑native wallets reduce cognitive and operational risk (no seed to lose/expose) and are approachable even for non‑crypto‑native users (e.g., onboarding parents).
    • Oviata is built on WebAuthn; supports device biometrics and hardware keys (e.g., YubiKey). The goal is a seamless experience across Bitcoin and EVM/Solana/Ripple — a single identity across dApps and chains.
    • Longer‑term aspiration: everyday retail payments directly with Bitcoin/stablecoins in self‑custody.

  • Mark (High Tower):

    • Echoed “build for people, not protocols.” Emphasized social logins/biometric flows, chain abstraction, and web2‑grade financial app UX to reduce friction ("deposit BTC to earn yield" rather than exposing raw crypto primitives).

AI‑built utility and “fun”: Caffeine AI and community tooling

  • Kyle (DFINITY/ICP) on Caffeine AI (vibe‑coding platform):

    • Caffeine (caffeine.ai) enables non‑developers to code, test, deploy, and maintain apps without touching code or infra. Currently in alpha; public access expected around mid‑September (waitlist available now).
    • Demos built live:
      • Arcade gated by Runes purchases (e.g., POP from RichSwap): arcade opens only if someone bought a specified Rune in the last hour. Built and deployed in ~45 minutes.
      • Multiplayer, Tamagotchi‑inspired tribe game: free now; plumbing exists to charge subscriptions in DOG/PUP tokens. Built in ~5 hours (half of time spent on design/prompts).
    • Today’s capabilities center on reading APIs; ICP’s planned “phase 5” would open multi‑chain actions (etching Runes, signing native BTC transactions) directly from Caffeine‑built apps.
    • Scope caveat: AI won’t build complex apps like Kairos or Taiki yet; the near‑term unlock is long‑tail utility — games, social experiences, services for any token community.

  • “Clueless” (Kairos):

    • Kairos already supports permissionless prediction market creation. Envisions Caffeine‑built bots to:
      • Scan for newly bonded user‑created markets on Kairos and surface them.
      • Track social timelines for trending topics and auto‑spin up relevant markets.
    • Reputation signals (e.g., verified accounts) will bolster trust for user‑created markets.
    • Strategic lens: Bitcoin is no longer a monoculture; Runes/Ordinals communities made Bitcoin “fun” again. Kairos aims to add utility for those tokens (beyond buy‑and‑hold) with competitions (e.g., “cabals” for PnL battles) and yield for LPs.

  • Ray (Taiki):

    • For Bitcoin DeFi to retain newcomers (not just rotate existing crypto traders), the ecosystem needs more “fun” and useful apps. Taiki integrates mini‑games (e.g., coin flip) so tokens can be used immediately post‑launch.
    • Encourages builders/community to use tools like Caffeine to create more games atop Taiki — the architecture supports community mini‑games alongside team‑built ones.

Event and community notes

  • Runes Asia 2025: Aug 27 in Hong Kong; free registration (link pinned in the space). ~27 speakers spanning major BTCFi builders (Runes focus).
  • Multiple speakers plan to connect in person; expect demos, discussions on gaming, yields, interoperability.

Key takeaways and highlights

  • Yield design is diversifying on Bitcoin:
    • Classic LP fee sharing (e.g., 0.3% fees to LPs) and novel “house” yield in provably fair on‑chain games (3% per play to the house) are live today.
    • Prediction markets are moving toward permissionless market creation with BTC‑denominated AMMs, with LP protection via LVR and related mechanisms.
  • Wallet UX is the gateway: passkey‑native, chain‑agnostic self‑custody (no seed phrases) can dramatically reduce onboarding friction and unify identities across BTC/EVM/Solana/Ripple.
  • Product > stack: ICP’s stance is to enable builders to realize their exact product vision (e.g., Liquidium vs. Odin trade‑offs) and let the market choose. Radfi exemplifies the “ship product, iterate fast” approach on Bitcoin L1.
  • L1 security with fast UX is viable: Radfi’s 2‑of‑2 multisig trading wallets (with expiring co‑signatures) deliver speed while preserving user control.
  • AI will supercharge community utility: Caffeine AI empowers non‑devs to build gated games, social apps, and services for specific Runes/tokens — near‑term via APIs; mid‑term via multi‑chain actions (etch/sign on BTC) as ICP capabilities open.
  • “Fun” is a strategy, not fluff: mini‑games, engaging UIs, alerts, and social mechanics keep users active, help tokens retain communities, and create immediate utility post‑launch.

Notable mentions and resources

  • Taiki platform and mini‑games; host referenced a link “tacky.run” during the session (transcription may vary).
  • RichSwap — a Runes DEX used in Caffeine AI demos for token‑gated access.
  • Liquidium, Odin — contrasting ICP‑enabled architectures for Bitcoin apps.
  • Kairos features: permissionless market creation, emerging LP/AMM design, “cabals” (group PnL competitions), reputation signals.
  • Oviata: passkey‑native wallet infra; single‑ID, chain‑agnostic self‑custody.
  • High Tower: cross‑chain infra; strategy aggregation/one‑click UX for BTC/Runes yields.
  • Caffeine AI (caffeine.ai): waitlist open; non‑dev app building, with future multi‑chain actions planned.

Closing sentiment

  • Builders share a common goal: build for people. Abstract away complexity, prioritize secure and delightful experiences, and make Bitcoin useful and fun. With Runes, wallets, ICP infra, and AI tooling converging, participants are optimistic about an oncoming expansion of BTCFi utility and adoption.