> For the complete documentation index, see [llms.txt](https://docs.stratovm.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.stratovm.io/stratovm-defi-focused-modular-l2-on-bitcoin/introduction.md).

# Introduction

StratoVM is a modular rollup, aiming to empower the future of DeFi on Bitcoin.

{% hint style="info" %}
StratoVM is currently in its testnet phase
{% endhint %}

The rise of DeFi has showcased the potential of blockchain technology to revolutionise  financial services. 

However, the existing DeFi ecosystem primarily operates on the Ethereum network, which has scalability limitations and high transaction costs. Meanwhile, Bitcoin offers unparalleled security and decentralization but lacks smart contract capabilities and suffers from scalability constraints.

StratoVM aims to bridge this gap by offering a highly scalable and secure Layer 2 solution built on top of Bitcoin, designed specifically for DeFi applications. As a Bitcoin-first application layer, StratoVM focuses on scaling a new Bitcoin economy.

Our mission is to activate the dormant potential of illiquid Bitcoin  economy by extending Bitcoin's reach and utility through a performant domain for user engagement and robust dApp development.

StratoVM leverages the Optimism codebase and implements a modified version of the OP Stack, bringing smart contract functionality to Bitcoin. This enables developers to build applications on the most secure and widely adopted blockchain network.

StratoVM's ecosystem is designed to unlock Bitcoin's full potential through innovative products and solutions. Our platform offers:

* **Enhanced Bitcoin Liquidity with SBTC**: A mechanism to make Bitcoin more liquid and yield-generating within the StratoVM ecosystem.
* **StratoVM Network**: A robust infrastructure that enables seamless development and deployment of Bitcoin-focused applications.


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