With the emergence of Core DAO, Bitcoin is taking an active role in the decentralized finance (DeFi) ecosystem, providing broad access to financial instruments.
Core DAO and its Role in BTCFi
Core DAO is an innovative platform that combines Bitcoin's security with Ethereum Virtual Machine (EVM) compatibility through the Satoshi Plus consensus mechanism. Since the mainnet launch in January 2023, Core DAO has been actively developing BTCFi infrastructure.
Key Protocols Implementing BTCFi
Colend offers a Bitcoin-based lending platform. Bitflux ensures Bitcoin liquidity within the Core DAO framework. Glyph Exchange connects Bitcoin and EVM ecosystems. Solv Protocol introduces the concept of staking for Bitcoin on the Core DAO blockchain.
Benefits and Challenges of BTCFi
BTCFi represents not just an opportunity for Bitcoin to expand its functions in DeFi, but also a challenge to attract conservative Bitcoin holders to this new concept. The increasing protocol engagement and Core DAO's TVL growth present promising prospects.
The development of BTCFi through Core DAO illustrates the transformation of Bitcoin into an active DeFi tool. Despite some challenges, the platform continues to draw interest from both Bitcoin supporters and DeFi enthusiasts.
