Just about a year ago, BTC was still only being used as a means of payment (as Satoshi had hoped) or a reserve asset. Even in 2020, Bitcoin almost did not participate in the DeFi summer. Even when combining "Bitcoin" with "DeFi" in 2021, many investors will immediately think of a scam project taking advantage of the Bitcoin and DeFi trend. However, it seems things are different as technology evolves and Layer-2 solutions are providing more use cases for BTC. For example, Stacks and Rootstock again introduced smart contracts, allowing more applications to be built based on Bitcoin, including DeFi Dapps[1].
(https://talkimg.com/images/2024/02/29/fnfo3.png)
Bitcoin's TVL has reached 2.34B USD[2], ranking 6th among all chains, surpassing Polygon, Avalanche and Optimism[3]. Tron is also planning to launch a Bitcoin Layer-2 solution to connect and power DeFi on Bitcoin[4].
(https://talkimg.com/images/2024/02/29/fnYF8.png)
(https://talkimg.com/images/2024/02/29/fnvuZ.png)
Recently, Binance Labs, the venture capital arm of crypto titan Binance, invested in a novel project called Babylon. This innovative protocol paves the way for Bitcoin staking on PoS blockchains, offering exciting possibilities for both Bitcoin holders and PoS ecosystems. BTC holders will earn additional income from their existing Bitcoin holdings without relying on complex solutions[5].
I am a Bitcoin's fan, and I have been actively continuing DCA BTC. Honestly, I would feel better having my BTC stored in my personal wallet, rather than being sent to some DeFi protocols whose safety I don't really understand and trust. I know that DeFi summer may be coming this year thanks to the wave of staking and restaking trends, the profits from DeFi could be huge and I will have more income from my BTC, but I still don't have enough motivation and reason to join DeFi on Bitcoin. Perhaps because my risk appetite is so bad, I worry about the fate of my BTC in the fledgling DeFi protocol under the eyes of increasingly professional hackers.
I would like to know your views on Defi on Bitcoin:
- What are your thoughts on storing BTC?
- Do you believe DeFi represents an evolution for Bitcoin?
- Are you interested in participating in DeFi with your Bitcoin?
Refenrences:
[1] Bitcoin’s Expanding Ecosystem: Layer-2, DeFi, NFT (https://crypto.com/research/bitcoin-ecosystem-layer2-defi-nft)
[2] DefiLlama: Bitcoin Total Value Locked (https://defillama.com/chain/Bitcoin)
[3] DefiLlama: Total Value Locked All Chains (https://defillama.com/chains)
[4] Tron founder unveils Bitcoin layer-2 solution as BTC DeFi breaks $1.2 billion in TVL (https://cryptoslate.com/tron-founder-unveils-bitcoin-layer-2-solution-as-btc-defi-breaks-1-2-billion-in-tvl/)
[5] Binance Backs a Bitcoin Staking Solution: The Next Big Thing in Crypto? (https://beincrypto.com/binance-invest-bitcoin-staking-protocol/)
Note:
- My opinion was posted first in that topic, on Bitcointalk (https://bitcointalk.org/index.php?topic=5487101)
- I leave the source link to avoid plagiarism accusation.
- I excluded/ included minor things from an original thread if necessary.
Just about a year ago, BTC was still only being used as a means of payment (as Satoshi had hoped) or a reserve asset. Even in 2020, Bitcoin almost did not participate in the DeFi summer. Even when combining "Bitcoin" with "DeFi" in 2021, many investors will immediately think of a scam project taking advantage of the Bitcoin and DeFi trend. However, it seems things are different as technology evolves and Layer-2 solutions are providing more use cases for BTC. For example, Stacks and Rootstock again introduced smart contracts, allowing more applications to be built based on Bitcoin, including DeFi Dapps[1].
(https://talkimg.com/images/2024/02/29/fnfo3.png)
Bitcoin's TVL has reached 2.34B USD[2], ranking 6th among all chains, surpassing Polygon, Avalanche and Optimism[3]. Tron is also planning to launch a Bitcoin Layer-2 solution to connect and power DeFi on Bitcoin[4].
(https://talkimg.com/images/2024/02/29/fnYF8.png)
(https://talkimg.com/images/2024/02/29/fnvuZ.png)
Recently, Binance Labs, the venture capital arm of crypto titan Binance, invested in a novel project called Babylon. This innovative protocol paves the way for Bitcoin staking on PoS blockchains, offering exciting possibilities for both Bitcoin holders and PoS ecosystems. BTC holders will earn additional income from their existing Bitcoin holdings without relying on complex solutions[5].
I am a Bitcoin's fan, and I have been actively continuing DCA BTC. Honestly, I would feel better having my BTC stored in my personal wallet, rather than being sent to some DeFi protocols whose safety I don't really understand and trust. I know that DeFi summer may be coming this year thanks to the wave of staking and restaking trends, the profits from DeFi could be huge and I will have more income from my BTC, but I still don't have enough motivation and reason to join DeFi on Bitcoin. Perhaps because my risk appetite is so bad, I worry about the fate of my BTC in the fledgling DeFi protocol under the eyes of increasingly professional hackers.
I would like to know your views on Defi on Bitcoin:
- What are your thoughts on storing BTC?
- Do you believe DeFi represents an evolution for Bitcoin?
- Are you interested in participating in DeFi with your Bitcoin?
Refenrences:
[1] Bitcoin’s Expanding Ecosystem: Layer-2, DeFi, NFT (https://crypto.com/research/bitcoin-ecosystem-layer2-defi-nft)
[2] DefiLlama: Bitcoin Total Value Locked (https://defillama.com/chain/Bitcoin)
[3] DefiLlama: Total Value Locked All Chains (https://defillama.com/chains)
[4] Tron founder unveils Bitcoin layer-2 solution as BTC DeFi breaks $1.2 billion in TVL (https://cryptoslate.com/tron-founder-unveils-bitcoin-layer-2-solution-as-btc-defi-breaks-1-2-billion-in-tvl/)
[5] Binance Backs a Bitcoin Staking Solution: The Next Big Thing in Crypto? (https://beincrypto.com/binance-invest-bitcoin-staking-protocol/)
Note:
- My opinion was posted first in that topic, on Bitcointalk (https://bitcointalk.org/index.php?topic=5487101)
- I leave the source link to avoid plagiarism accusation.
- I excluded/ included minor things from an original thread if necessary.
Well I'm excited to see what the future holds for Bitcoin and Defi, Bitcoin has made strides in it Blockchain technology, it still have way to catch up with the Ethereum smart contract capability. With the ingenuity of crypto community, we could see some solution brought that bring Bitcoin into the defi fold. Time will tell but for now let's keep watching the Bitcoin journey and cheering on the folks phishing for decentralized boundaries.