Bitcoin DeFi is Blooming Why? Developers Express their Insights

Features like Ordinals, Runes, and BRC-20 currencies have recently arrived on the namesake blockchain, which is 16 years old. Despite this, developers remain optimistic about the ecosystem’s future and are unfazed by the prospect of a market correction.

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Solv and Ethena Offers Making the Bitcoin Blockchain More Robust

“The fragmentation of liquidity and the lack of base yield are the two main factors limiting BTCFi’s development. They at the moment,” stated SolvBTC co-founder Ryan Chow in an interview. “These factors have led to a significant amount of Bitcoin being left idle, unable to actively participate in the DeFi ecosystem.”

Like liquid staking tokens on the Ethereum blockchain, SolvBTC is building Liquid Yield Tokens as a Bitcoin yield protocol. These tokens let Bitcoin holders invest their funds and earn income from DeFi. Launched earlier this year, 292,000 people have contributed $1.3 billion to the project’s value.

“I’d like to take SolvBTC Ethena Vault as an example to explain. How Solv brings stable base yield and rich earning opportunities to Bitcoin users,” explained Chow. To mint and stake Ethena’s USDe, the Vault borrows stablecoins using Bitcoin as collateral. Here, we collect the return on investment (ROI) from our delta hedging derivatives positions’ funding rates. A competitive annual percentage yield (APY) of about 15% net is achievable under this method.

Solv and Ethena Offers

In addition, he mentioned that Solv and Ethena offer bonus token incentives for this Vault, which might increase the entire yield even further. Users can discover more yield chances across other networks as Solv develops robust DeFi integrations for SolvBTC.ena. Solv and Ethena Offers

Bitcoin DeFi is Blooming: With the debut of SolvBTC on the Ethereum main net, customers will soon be able to access wrapped Bitcoin (wBTC) liquidity and produce returns directly on the Ethereum DeFi ecosystem. This will be possible shortly.

An innovative Bitcoin yield protocol known as Master Yield Market has recently been made available to the public. This protocol brings together all Bitcoin assets that are currently yielding. Users can purchase by utilizing wrapped Bitcoin, Ethereum, or Tether over the protocol. Bitcoin yields assets directly from blockchain-native DeFi protocols.

Making the Bitcoin Blockchain More Robust

At the same time, some programmers are concentrating on making the Bitcoin blockchain more robust so that it can perform better in DeFi scenarios.

The lead creator of MetaID, Sunny Fung, has stated. Bitcoin “cannot solve the problem of congestion and high fees in the foreseeable future.” However, the problem can be reduced by using layer solutions on top of Bitcoin, consolidating separate transactions into a single application.

“MetaID introduces the concepts of Unified UTXO Chain and Unified Bitcoin Address, which effectively solves Bitcoin’s congestion problem and fully unleashes. The potential of Layer 2 networks that are homogeneous with Bitcoin,” said Fung. “As long as it is a Bitcoin sidechain, Layer-2, or even BCH. That is homogeneous with Bitcoin, MetaID can theoretically support it seamlessly.”

Aside from being “designed the earliest and lacking smart contracts,” Bitcoin is still the “best carrier for Web3 applications,” according to Fung, thanks to its characteristics like most remarkable consensus, decentralization, security, and on-chain data storage through satoshis.