BTCFi, or Bitcoin Decentralized Finance, aims to turn Bitcoin into an active participant in the DeFi ecosystem. Core DAO is leading this movement by combining Bitcoin's security with EVM compatibility.
BTCFi and the Role of Core DAO
Core DAO aims to expand the use of Bitcoin beyond simple holding by making it the center of various DeFi applications like lending, trading, and staking. Since its mainnet launch in January 2023, Core DAO has seen its Total Value Locked (TVL) across DeFi surpass $400 million, driven by secure and decentralized protocols built atop its ecosystem.
Key Platforms: Colend, Bitflux, and Glyph
Colend enables users to lend their bitcoins and earn yield without intermediaries. Bitflux improves Bitcoin liquidity within the ecosystem by offering fast and reliable swaps. Glyph Exchange offers interoperability by connecting EVM liquidity with Bitcoin-based assets, promoting trading of BRC-20 and ERC-20 tokens.
BTCFi Prospects and Conclusion
BTCFi implies not only adding new capabilities to Bitcoin but also redefining its role in DeFi. The main challenge is convincing conservative holders to embrace this narrative. However, Core DAO's TVL growth offers hope for BTCFi's success.
Platforms like Colend, Bitflux, and Glyph contribute to advancing BTCFi and expanding Bitcoin's functionality. These innovations could make BTCFi a substantial part of the DeFi world, but will Bitcoin remain just a good store of value?
