BTCFi, or Decentralized Finance based on Bitcoin, transforms this asset from passive reserve into a central figure in the DeFi ecosystem. One of the leading platforms, Core DAO, is working on implementing this new utility for Bitcoin.
BTCFi and Core DAO Innovations
Core DAO aims to expand Bitcoin's uses beyond storage. Since the launch of its mainnet in January 2023, the platform has made significant strides, creating a thriving DeFi ecosystem with Total Value Locked (TVL) over $400 million.
Colend: New Possibilities for Bitcoin Lending
The Colend platform allows users to leverage their Bitcoin for lending and borrowing assets without intermediaries. With a TVL over $100M, Colend pushes BTC to the forefront in DeFi platforms. This shifts Bitcoin from passive storing to an income-generating asset.
Bitflux and Bitcoin Liquidity
Bitflux strengthens Bitcoin liquidity in the Core DAO ecosystem, offering users the ability to swap BTC and related assets with low slippage. The protocol offers trustless swaps for users, paving the way for wider BTCFi adoption on Core DAO.
The discussed protocols are paving the future where Bitcoin is not just held but also generates revenues. BTCFi could significantly redefine Bitcoin's role in the financial world.
