Often referred to as 'digital gold', Bitcoin is gradually becoming an integral part of DeFi through BTCFi initiatives. This process aims to shift Bitcoin from being merely a store of value to a more dynamic and utilized tool.
Development of BTCFi and the Role of Core DAO
BTCFi, or Bitcoin decentralized finance, aims to make Bitcoin an active participant in decentralized finance. The Core DAO organization plays a key role in this process, leveraging its Satoshi Plus Consensus mechanism to merge Bitcoin's security with Ethereum Virtual Machine compatibility. Core DAO's primary goal is to extend Bitcoin usage beyond its traditional holding function, including providing new opportunities for lending, trading, and staking.
Platforms Supporting BTCFi
Among the key platforms supporting BTCFi based on Core DAO are Colend, Bitflux, Glyph Exchange, and Solv Protocol. Colend allows users to leverage Bitcoin for lending and earning income. Bitflux enhances Bitcoin liquidity by providing trustless swaps. Glyph Exchange bridges Bitcoin and DeFi ecosystems, while Solv Protocol introduces PoS for Bitcoin, offering staking opportunities without loss of control over assets.
BTCFi Prospects and Challenges
BTCFi has the potential not only to expand Bitcoin's functionality but to redefine it as an active participant in the global financial system. Despite obvious advantages, numerous challenges exist, including the need to convince conservative Bitcoin holders to engage in DeFi. Nonetheless, the growing Total Value Locked (TVL) in the Core DAO ecosystem indicates steady progress of BTCFi.
Supported by Core DAO and various innovative platforms, BTCFi offers new horizons for Bitcoin utilization. Despite existing challenges, transforming Bitcoin from a store of value into a central figure in decentralized finance opens up vast opportunities for the future.
