1/ Most Bitcoin still just sits. But a new wave of BTCFi on @Starknet might finally change that. Trustless BTC staking, one-click yield, and 100M $STRK in incentives designed for activity, not idle TVL. Here’s why this might be the most interesting Bitcoin-on-DeFi experiment yet 🧵👇
2/ ~95% of BTC supply is inactive. It’s incredible as collateral, but unproductive as capital. Starknet’s BTCFi initiative is trying to flip that: Make BTC earn without leaving self-custody, and connect it directly to DeFi strategies. Lending, staking, vaults, and tokenized funds.
3/ BTCFi on Starknet launched at Token2049. Key pieces: • Trust-less BTC staking (no custody loss) • ~100M STRK rewards, distributed weekly for ~6 months • Unified Earn portal - one interface to stake, lend, or access institutional yield strategies. All built on zk-STARK rollups.
5/ Strategies already range widely: • ~2–3% APR from BTC staking (low risk) • ~15–20% from institutional RE7 funds • ~25–30% when looped through lending markets Yields aren’t guaranteed. They depend on usage, but the structure is built to reward productive activity (borrowers, LPs, stakers).
6/ What’s different here: Incentives target borrowers and liquidity, not idle deposits. All wrappers route through WBTC, sorry liquidity stays unified (no wrapper wars). Borrowing costs drop by ~40%, meaning cheaper looping and real capital efficiency.
7/ It also ties into Starknet’s longer-term decentralization: Validators will eventually be able to stake BTC or STRK, aligning Bitcoin’s security with Ethereum’s scaling layer. That’s a subtle but important shift. Bitcoin helping secure a ZK-rollup ecosystem.
8/ It’s too early to call this the “future of BTCFi,” but it’s the most coherent design I’ve seen so far: Real incentives Unified UX Clear governance safeguards A credible technical stack underneath
9/ For BTC holders tired of idle coins, Starknet’s BTCFi beta is worth watching or testing if you’re comfortable exploring new yield flows. Start with the Earn portal (beta) Or stake directly from your wallet 👇 Just remember: yields vary, risks exist but the design direction feels genuinely different.
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