> For the complete documentation index, see [llms.txt](https://pegasys.gitbook.io/pegasys-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://pegasys.gitbook.io/pegasys-docs/future-research/taproot-assets.md).

# Taproot Assets

With the Taproot upgrade introduced as a part of BIP341\[12], a new class of assets called Taproot Assets\[13] has emerged to enable the native issuance of Assets on Bitcoin. Taproot assets enable high-volume, near-instant, and low-cost asset transfers through the lightning network. More importantly, Taproot Assets are compatible with the Lightning network out of the box, allowing a future version to add support for these assets with minimal changes to the protocol.

Integration of Taproot Assets into the protocol would allow Liquidity Providers to natively earn yield in several assets apart from Bitcoin, adding more revenue streams to the protocol and improving capital efficiency by utilizing multi-hop routing with heterogeneous channels.


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