> For the complete documentation index, see [llms.txt](https://docs.b14g.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.b14g.xyz/architecture.md).

# Architecture

### **1. Architecture Overview**

b14g is a **modular BTCFi coordination layer** connecting **Bitcoin’s liquidity** with **multi-chain dual-staking ecosystems**.

It unifies three core components — **Self-Custodial BTC Staking**, **BTCFi Vaults**, and the **Merge Marketplace** — into a composable infrastructure that can be integrated by any Bitcoin-aligned chain.

#### **Architecture Pillars**

| Layer                  | Core Component                       | Purpose                                                     |
| ---------------------- | ------------------------------------ | ----------------------------------------------------------- |
| **Distribution Layer** | BTC Self-Custodial Staking + Vaults  | Activate Bitcoin yield and user participation               |
| **Middleware Layer**   | Merge Marketplace + Dual-Staking SDK | Match liquidity, route yield, and enable chain integrations |
| **Base Layer**         | Unified BTCFi Layer + $B14G          | Coordinate governance, incentives, and cross-chain data     |

### **2. BTC Self-Custodial Staking**

> *Bitcoin security, without custodial risk.*

* Built on **Bitcoin time-locked staking**, allowing users to lock BTC directly from their wallet (e.g., via Taproot scripts).
* BTC remains on the Bitcoin mainnet; proof-of-stake delegation is managed through cross-chain attestation.
* Enables **non-custodial staking** to secure Bitcoin-aligned chains (Core, Babylon, Stacks, etc.).
* Provides the foundation for BTCFi vault yield flows.

**Key Features:**

* Time-locked BTC staking
* Verifiable on-chain yield accrual

{% content-ref url="/pages/oBDQmRNdw5WRMo5qzt5c" %}
[Self-Custodial Bitcoin Staking](/architecture/self-custodial-bitcoin-staking.md)
{% endcontent-ref %}

### **3. BTCFi Vaults**

> *Yield infrastructure for dual-staking and DeFi strategies.*

* Smart-contract-based vaults that combine **BTC and partner tokens** (e.g., CORE, BABY, STX) to earn shared rewards.
* Each vault enforces allocation logic: BTC is secured via time-locks; tokens are delegated to network validators or liquidity pools.
* Supports **risk-adjusted yield strategies** (e.g., safe vaults, leveraged vaults, stablecoin-backed vaults).
* Emits **b14g Points** as reward metrics for future cross-chain incentive distribution.

**Example Vaults:**

* `dualCORE Vault` — CORE lst for dual-staking
* `coBABY Vault` — BABY lst for co-staking
* `dualSTX Vault` — STX lst for dual-staking

**Vault Architecture Stack:**

* Smart Contracts (EVM-compatible, Cosmwasm)
* Yield Router (APY optimizer)
* Oracle & Validator Registry (APR data feed)
* b14g Indexer (cross-chain position tracking)

{% content-ref url="/pages/yu2rb9uowXtDbE7cnGnF" %}
[dualCORE - Liquid Staking](/products/for-core-holders/dualcore-liquid-staking.md)
{% endcontent-ref %}

### **4. Merge Marketplace**

> *Unifying BTC and token stakers into one marketplace.*

* A **dual-staking matching engine** where BTC stakers post “orders” and token stakers match them.
* Works like an **on-chain orderbook** for yield: matching BTC and token capital in real time based on yield preferences, duration, and risk score.
* Supports both **manual participation** (for retail) and **automated routing** (for protocols and aggregators).
* Fully transparent and composable — other dApps can integrate marketplace liquidity via API or SDK.

**Technical Modules:**

* Matching Engine Smart Contracts
* Order Registry & Indexer
* Yield Router & Fee Module
* Marketplace SDK for chain partners

{% content-ref url="/pages/n02nQj3Itpy2eFAaUUuH" %}
[Merge Marketplace](/architecture/merge-marketplace.md)
{% endcontent-ref %}

### **5. Data and Identity**

#### **Unified BTCFi Layer**

* Tracks user positions, staking history, and yield data across all supported chains.
* Aggregates vault data for analytics, reputation, and institutional reporting.
* Enables “BTCFi identity”, a unified profile representing all BTC-based yield activities.

**Data Sources:**

* Vault smart contracts
* Cross-chain indexers (Babylon, Core, Stacks, etc.)

### **6. Token and Governance**

#### **$B14G Token Functions**

| Function                   | Description                                                 |
| -------------------------- | ----------------------------------------------------------- |
| **Governance**             | Adjust marketplace fees, vault parameters, reward rates     |
| **Yield Routing**          | Direct yield flow and protocol incentives                   |
| **Fee Capture**            | Collect a small percentage of performance and matching fees |
| **Staking Boost**          | Enhance user yield through loyalty multipliers              |
| **Cross-Chain Incentives** | Power b14g Points redemption and inter-chain campaigns      |

**Governance Structure**

* **BTCFi Council (DAO):** manages yield parameters and validator whitelists
* **Multi-sig Treasury:** collects and redistributes protocol fees
* **Proposal Framework:** on-chain proposals via $B14G staking

***

### **7. Dual-staking SDK**

The [**b14g Dual-Staking**](/architecture/dual-staking.md) **SDK** allows new Bitcoin-aligned chains to integrate dual-staking **in days, not months.**

**Integration Modules:**

* Validator registry interface
* Yield & reward router
* BTC self-custodial staking adapter (via Babylon light client)
* Marketplace API

**Benefits for Partner Chains:**

* Plug-and-play staking infrastructure
* Shared BTC liquidity pool access
* Built-in exposure to Bitcoin’s on-chain capital

***

### **6. Security & Audits**

{% content-ref url="/pages/I72HBhIyS3JVaqN32o7c" %}
[Audits](/audits.md)
{% endcontent-ref %}