Comprehensive Interpretation of BTCFi: From Lending to Staking, Establish Your Own Mobile Bitcoin Bank

Summary

As Bitcoin's position in the financial market continues to solidify, the BTCFi sector is rapidly becoming the forefront of cryptocurrency innovation. This research report delves into several key tracks of BTCFi, including stablecoins, lending services, staking services, re-staking services, and the integration of centralized and decentralized finance. The report outlines the scale and growth potential of the BTCFi market, thoroughly discusses the mechanisms and main projects of various services, and compares the security, yield, and ecosystem richness of different asset classes.

With the continuous development of the BTCFi sector, more innovations and capital inflows are expected, further consolidating Bitcoin's leadership position in the financial field.

Keywords: BTCFi, stablecoin, lending, staking, re-staking, CeDeFi, Bitcoin finance

BTCfi Track Overview

BTCFi (Bitcoin Finance) is a series of financial activities centered around Bitcoin, including Bitcoin lending, staking, trading, futures, and derivatives. According to data forecasts, the BTCFi market size could reach $1.2 trillion by 2030. Over the past decade, the BTCFi market has shown significant growth potential, attracting more and more institutional participation, bringing higher recognition and trust to the market.

BTCFi Track Segmentation

1. Stablecoin Track

Stablecoins are a type of cryptocurrency designed to maintain a stable value, typically pegged to fiat currencies or other valuable assets. In the BTC ecosystem, the stablecoin projects worth noting are mainly decentralized stablecoins.

Main projects include:

• BitSmiley Protocol
• Bamk.fi (NUSD)
• Yala Labs
• Satoshi Protocol
• BTU

2. Lending track

Bitcoin lending is a financial service that allows individuals to obtain loans by using Bitcoin as collateral or to earn interest by lending Bitcoin.

Main projects include:

• Liquidium
• Shell Finance

3. Staking track

Staking is usually recognized for its characteristics of security and stable income. The staking service in BTCFi allows users to lock up Bitcoin to provide security for other PoS chains while earning returns.

Main projects:

• Babylon

4. Restaking track

Re-staking is the process of using liquid staked token assets to stake with validators on other networks and blockchains to earn additional rewards.

Main projects include:

• Chakra
• Bedrock

5. Decentralized Custody

With BitGO, the entity behind wBTC, announcing the handover of wBTC control, discussions about the security of Bitcoin's wrapped form have emerged in the market. New decentralized custody solutions include tBTC, FBTC, and dlcBTC.

6. CeDeFi

CeDeFi combines the characteristics of centralized finance and decentralized finance. In this model, users lock their Bitcoin in an independent off-chain settlement network managed by a third party, and then use tokens to perform various operations on the CeDeFi platform.

Main projects include:

• Solv Protocol
• Bouncebit
• Lorenzo protocol

7. DEX AMM Swap

Decentralized exchange automated market maker swapping is a decentralized trading mechanism that operates on the blockchain, using algorithms and liquidity pools to automatically provide liquidity for trading pairs.

Main projects include:

• Bitflow
• Dotswap
• Unisat AMM Swap

Comparison of Different Asset Classes

Security Comparison

The BTCFi ecosystem's focus on "security" is much higher than that of other ecosystems. Compared to PoS blockchains like Ethereum and Solana, BTC, as a PoW system, has certain advantages in terms of security, but it is still necessary to be vigilant about the systemic risks accumulated from excessive FI protocols.

Yield Comparison

The sources of income for the BTCFi project are diverse, including staking rewards, DeFi product returns, and the income generated by the protocol itself. Compared to ETHfi and SOLfi, BTCFi, as an emerging field, may have a higher yield potential.

ecological richness

The BTCFi ecosystem is currently in a period of explosive growth, with a large number of projects emerging, including Layer 2. In addition to BTC itself, assets based on the BTC network such as inscriptions and runes have also appeared, as well as various certificates representing staked BTC, expanding the scope of FI.

Conclusion

With the entry of global institutions and tech giants, BTCFi is becoming an innovation engine in the crypto finance sector. It not only meets the market's demand for BTC liquidity but also further promotes the activity of the BTC network by increasing the use cases for Bitcoin. In the future, BTCFi is expected to become a bridge connecting the traditional financial world and the cryptocurrency world, providing global users with richer, safer, and more efficient financial services.