The Growing Defi Market on Bitcoin: What’s Yielding Already?

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The decentralized finance market ( DeFi) is expanding beyond Ethereum to other chains. It may surprise some to learn that Bitcoin (BTC), is one.

Continue reading to learn more about Bitcoin DeFi and the yields you can earn from your BTC holdings.

DeFi on Bitcoin

Bitcoin-native DeFi apps, powered by Bitcoin Layer 2 smart contract protocols (e.g. RootStock or Stacks), and secured with Bitcoin, are being developed to offer next-generation financial services based on Bitcoin.

Although the Bitcoin-native DeFi market remains small in comparison to the offerings on Ethereum, binance Smart Chain and other DeFi destinations, there is a growing market for decentralized Bitcoin native yielding products.

The most common use cases for Bitcoin DeFi are trading, staking and lending.

Check out these Bitcoin-native DeFi Apps

Let’s take a look at the top Bitcoin DeFi platforms, and see what decentralized products they offer.

Sovryn

Sovryn allows for decentralized bitcoin trading and lending. Sovryn is an open-source, permissionless protocol that uses smart contracts to allow BTC borrowing, lending, yield farm, and margin trading.

Sovryn, which is built on RSK, has many advantages over tokenized BTC on Ethereum such as better storage handling, data structure and lower transaction fees.

Sovryn can be used to lend BTC to margin traders and borrowers. You can also trade bitcoin using USD stablecoins. You can also access other features on Sovryn, such as automated market maker ( AM), pools, and yield farm.

Atomic Finance

Atomic Finance lets bitcoin holders generate yield on their BTC and retain custody through a covered-call strategy that is powered by DLCs (Discreet Log Contracts). Covered calls involve holding a token while simultaneously selling a call on the token. The option premium is your generated yield.

Discreet log contracts allow non-custodial speculation directly over the Bitcoin network. The protocol combines Bitcoin’s security and more flexible smart contracts to provide non-custodial yields via financial derivatives such as put options.

The protocol is currently in beta and further updates will be made in the future.

Atomic Finance

Atomic Finance lets bitcoin holders generate yield on their BTC and retain custody through a covered-call strategy that is powered by DLCs (Discreet Log Contracts). Covered calls involve holding a token while simultaneously selling a call on the token. The option premium is your generated yield.

Discreet log contracts allow non-custodial speculation directly over the Bitcoin network. The protocol combines Bitcoin’s security and more flexible smart contracts to provide non-custodial yields via financial derivatives such as put options.

The protocol is currently in beta and further updates will be made in the future.

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