List of Bitcoin DeFi ecological projects

The recent performance of various tracks in the Bitcoin ecosystem has been exceptionally impressive. The Ordinals protocol has brought unprecedented exposure and liquidity to the Bitcoin ecosystem. Inions (inscriptions) have made it possible for Bitcoin network NFT. The market is heading for a new climax, and Bitcoin network congestion and high handling fees have also become hot topics recently.

Under the mood, some new projects began to lay out the direction of Bitcoin DeFi. Due to the particularity of the Bitcoin network, the DeFi field is rarely involved, but even pictures and Tokens can be fried, and DeFi seems not impossible. BlockBeats sorted out some Bitcoin DeFi concept projects:

DeFiChain

DeFiChain is an innovative DeFi platform dedicated to providing fast, smart and transparent DeFi services. The platform aims to fully integrate DeFi functionality into the Bitcoin ecosystem. DeFiChain itself is a hard fork of Bitcoin, and most of its programming code is similar to Bitcoin, using the Bitcoin consensus mechanism to protect its network. DeFiChain provides a variety of DeFi services, including decentralized lending, decentralized trading platforms, and decentralized asset management.

According to DefiLlama data, the current TVL of DeFiChain is about 221 million US dollars. DFI is the native Token of the DeFiChain platform, which can be used to pay DeFiChain network fees, earn loan interest, and participate in governance. The platform is permissionless and anyone can participate in its ecosystem.

Rootstock

Rootstock is a smart contract platform guaranteed by Bitcoin miners and is currently the most secure workload-based smart contract network. As a Bitcoin sidechain, it enhances the value of the Bitcoin ecosystem by expanding the use of Bitcoin currency, and also has good compatibility with Ethereum in terms of EVM. Decentralized applications can be written using the Solidity compiler and the Web3 standard library, enabling Ethereum compatibility. Additionally, it can scale Bitcoin payments with more on-chain space and off-chain transactions provided by the RIF Lumino payment channel network. The native Token of the Rootstock sidechain is RBTC.

The current TVL of Rootstock is about 88.5 million US dollars, of which the TVL of the lending agreement MoneyOnChain is about 44.25 million US dollars, and the TVL of Sovryn is about 22.5 million US dollars.

MoneyOnChain is a bitcoin-secured stablecoin protocol that allows users to mint the dollar-pegged stablecoin DOC by staking bitcoins. DOC can be used for transactions and loans on the MoneyOnChain platform.

Sovryn allows users to lend, borrow, trade Bitcoin and earn interest without the need for a centralized institution. Sovryn is open source and license-free, allowing anyone to participate in its ecosystem.

On March 17, 2023, Sovryn launched Sovryn Dollar (DLLR), a 100% Bitcoin-backed stablecoin, aggregated from other Bitcoin-backed stablecoins and pegged to the U.S. dollar. Sovryn Dollar maintains a large over-collateralized BTC reserve to ensure that it can always be exchanged for BTC by holders.

BadgerDAO

BadgerDAO is a project focused on building a bridge between Bitcoin and DeFi in the Ethereum ecosystem. BadgerDAO aims to provide Bitcoin holders with more tools and services, by enabling Bitcoin to be used as collateral for DeFi applications, allowing users to easily bring their assets to the DeFi field and earn income from it.

As a community-driven project, BadgerDAO allows users who hold its governance token Badger to participate in the governance and decision-making of the project. At the same time, BadgerDAO also provides developers with an incentive plan to encourage them to contribute code and innovation to the project. Innovative products and services facilitate the growth of Bitcoin in DeFi.

Its core product is Sett, an asset management tool based on automated yield optimization strategies. Sett supports multiple Bitcoin-based assets such as Wrapped Bitcoin (WBTC), RenBTC, and tBTC. Sett allows users to deposit their assets into smart contracts, and then automatically earn income in different DeFi protocols according to pre-set strategies. BadgerDAO also launched a flexible supply currency called DIGG, whose price is pegged to Bitcoin. The supply of DIGG will be adjusted according to market demand to keep the price stable with Bitcoin.

Stacks

Stacks are Layer 2 of the Bitcoin network, bringing smart contract functionality to Bitcoin without modifying Bitcoin itself. Stacks take a pyramid approach with a base settlement layer at the bottom (Bitcoin), then add smart contracts and programmability on top of that (Stacks), and then layers on top of that for scalability and speed (Hiro's sub net).

By taking this layered approach, it is possible to have all the same features as Ethereum etc. Stacks, as the Layer 2 of Bitcoin, has some unique attributes, such as having its own Token, as an incentive mechanism to maintain a historical ledger of all its transactions, and operating with its own security budget.

The current TVL of Stacks is about 36 million US dollars, of which the decentralized trading platform ALEX (with a TVL of about 34 million US dollars) is the main TVL contributor. Stacks allow building decentralized and censorship-resistant software using Bitcoin as the underlying settlement layer. The ultimate goal is to build a network of financial systems and decentralized software products that use Bitcoin as their currency. The highest priority for the ecosystem right now is to integrate Stacks more tightly with Bitcoin so that it can be easily used with Stacks dapps.

Mintlayer

Mintlayer is a Tokenization layer built on top of Bitcoin, which supports interaction with BTC's Layer 1 and Layer 2 lightning networks. As a layer 2 solution built on the Bitcoin network, Mintlayer eliminates the need for wrapped Tokens or Token Bridges (the main attack vector for DeFi hackers), and instead uses atomic swaps from native BTC to the Mintlayer blockchain 1:1 trading of Token.

Mintlayer enables Bitcoin holders to access all types of DeFi tools as well as a vast ecosystem of Dapps using their native BTC. Through the atomic swap mechanism, users can trade any Token in the Mintlayer ecosystem for native Bitcoin, no longer requires a trusted third party. Mintlayer uses the Bitcoin UTXO structure instead of Ethereum, Ripple, Stellar or other account based models. The benefits of this are a greater focus on privacy, and payments can be batched (aggregated) in a single transaction, saving a lot of space.

Inscribe Finance

Inscribe Finance is a recently built DeFi platform based on BRC-20, aiming to bring together all the protocols and technologies of the ecosystem into the platform to democratize Bitcoin DeFi and provide the best user experience. Currently in an ultra-early stage, INSF is the native token of the platform and will be used as a governance token to allow interactions with future collaborators of the platform, etc. According to official data, INSF launched a public sale on May 13 and sold out within 15 minutes of going online.