> For the complete documentation index, see [llms.txt](https://cvnnt.gitbook.io/documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://cvnnt.gitbook.io/documentation/introduction/why-use-covenant/covenant-system-comparison-with-current-native-btcfi-solutions.md).

# Covenant system comparison with current native BTCFi solutions

Existing solutions for BTCFi programmability like L2s, metalayers, bridges or multisig solutions, including those based on BitVM, are stateless. 

Current projects are lack the end-to-end state because they can't directly combine UTXO and EVM technologies without off-chain gaps and glitches.

### Stateless current solutions vs. Covenant stateful BTCFi system

**Stateless solutions can't offer clear end-to-end on-chain path for the native BTC** from Bitcoin to, say, Ethereum because of reliance on the off-chain parts to some extent.

Such off-chain, stateless approach significantly compromises: 

* user custody, 
* decentralization, 
* security,
* performance.

Unlike multisigs, bridges, l2s, wraps, federations, or metalayers, that rely on those imperfect limited mechanics, **users with Covenant system:** 

* never give up custody, 
* never wrap BTC, 
* never trust custodians or operators, and 
* never wait for "challenge periods" or off-chain approvals on the operations. 

With Covenant system, **users manage their assets themselves** deterministically and permissionless, with zero interruptions, with a clear on-chain state of every operation end-to-end.

Covenant adds seamless stateful EVM programmability directly for native Bitcoin UTXOs. It inherits Bitcoin’s UTXO security and finality, and provides users with self-custody and a deterministic basis while they move their actual BTC in and out of DeFi ecosystems instantly and trustlessly – with zero compromises.

### Covenant system comparison with current solutions for native BTC

| BTCFi / Bitcoin DeFi Options        | Current solutions                                                      | Covenant system                                                 |
| ----------------------------------- | ---------------------------------------------------------------------- | --------------------------------------------------------------- |
| BTCFi state (including cross-chain) | Off-chain                                                              | Onchain                                                         |
| State verification                  | Manual/Semi-automated (private off-chain verification or calculations) | Decentralized, automated, onchain, public                       |
| Decentralization                    | Centralized/Federations                                                | Decentralized                                                   |
| Custody                             | Custodial / Semi-custodial                                             | Non-custodial (User self-custody)                               |
| Decision making                     | Centralized/Federative                                                 | Decentralized                                                   |
| Trust requirements                  | Medium to Very high                                                    | Low to zero                                                     |
| EVM+UTXO compound                   | No / Off-chain / Glitchy                                               | Yes, frictionless, completely on-chain                          |
| Middlemen / Human factor            | Yes, off-chain and manual approvals required                           | Zero, automated on-chain verification                           |
| KYC                                 | Very often required                                                    | Not required, optional integrations with providers possible     |
| BTC release time                    | From hours and days to weeks                                           | Under 1 minute for verifying the release transaction to Bitcoin |