Introduction to Hotstuff L1
On December 5, 2025, Hotstuff Labs unveiled the public testnet for Hotstuff L1, a decentralized finance (DeFi) Layer 1 blockchain engineered to seamlessly integrate on-chain trading with global fiat systems. This innovative platform is underpinned by DracoBFT, a bespoke consensus protocol designed to enhance transaction efficiency and security. Hotstuff L1 distinguishes itself by combining a high-performance on-chain order book with a programmable finance routing layer, enabling validators to function as direct conduits to trading, payments, and fiat channels. ([theblock.co](https://www.theblock.co/press-releases/381524/hotstuff-labs-launches-hotstuff-a-defi-native-layer-1-connecting-on-chain-trading-with-global-fiat-rails?utm_source=openai))
Validators as Financial Access Points
A defining feature of Hotstuff L1 is its reimagined role of validators. Beyond traditional consensus duties, validators on this platform can opt to serve as permissioned financial service providers. This dual functionality allows them to act as global financial access points, facilitating both the core trading engine and end-user interactions. For the trading engine, stablecoin rails grant access to off-chain liquidity, while for end-users, validators provide last-mile connectivity for fiat-crypto on/off-ramps, payments, and foreign exchange applications. ([theblock.co](https://www.theblock.co/press-releases/381524/hotstuff-labs-launches-hotstuff-a-defi-native-layer-1-connecting-on-chain-trading-with-global-fiat-rails?utm_source=openai))
Strategic Partnerships and Backing
Hotstuff Labs has garnered support from prominent investors, including Delphi Digital, Dialectic, Stake Capital, Tykhe Ventures, and founders of leading DeFi protocols such as 1inch, Safe, Biconomy, and Socket. This backing underscores the industry’s confidence in Hotstuff L1’s potential to revolutionize the DeFi landscape. Julien Bouteloup, Founder of Stake Capital Group, remarked, “Hotstuff Labs is building a performant chain that links trading, payments, and real-world settlement into one coherent layer. The vision is to enable validators to become active financial access points.” ([theblock.co](https://www.theblock.co/press-releases/381524/hotstuff-labs-launches-hotstuff-a-defi-native-layer-1-connecting-on-chain-trading-with-global-fiat-rails?utm_source=openai))
Public Testnet and Community Engagement
The launch of the Hotstuff L1 public testnet invites a diverse range of participants:
– **Traders and Quants**: They can explore early perpetual and spot trading features, multi-venue vaults, and market infrastructure built directly on the core Layer 1.
– **Builders, Fintechs, and Stablecoin Infrastructure Providers**: Opportunities abound to collaborate with Hotstuff Labs in developing new trading primitives, payment solutions, foreign exchange, and settlement use cases.
– **Validators and Node Operators**: Participants can operate DracoBFT nodes, benchmark performance, and experiment with financial service modules.
This inclusive approach aims to foster a robust ecosystem around Hotstuff L1, encouraging innovation and widespread adoption. ([theblock.co](https://www.theblock.co/press-releases/381524/hotstuff-labs-launches-hotstuff-a-defi-native-layer-1-connecting-on-chain-trading-with-global-fiat-rails?utm_source=openai))
Conclusion
Hotstuff L1 represents a significant advancement in the DeFi sector, offering a purpose-built Layer 1 blockchain that bridges the gap between on-chain trading and global fiat systems. By redefining the role of validators and integrating comprehensive financial services directly into the blockchain infrastructure, Hotstuff Labs is poised to address longstanding challenges in the DeFi space, paving the way for a more interconnected and efficient financial ecosystem.
