Bitcoin

pSTAKE Finance

DeFi

April

Cosmos

<h2 id="key-points">Key Points</h2>
<ul>
 <li>pStake Finance has introduced a liquid staking solution for Bitcoin to enhance decentralized finance (DeFi).</li>
 <li>The new solution aims to simplify the staking process and create additional yield generation opportunities for Bitcoin holders.</li>
</ul>
<p>pStake Finance, a firm backed by Binance Labs, has launched a liquid staking protocol for <a href="https://crypto.ro/en/cryptocurrencies/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin</a>. This move signifies a significant advancement for Bitcoin-native DeFi.</p>
<h2 id="bitcoin-staking-simplified">Bitcoin Staking Simplified</h2>
<p>The solution, which is built upon Babylon’s Bitcoin staking protocol, seeks to streamline the Bitcoin staking process. It also aims to provide Bitcoin holders with more chances for yield generation.</p>
<p>pStake Finance has chosen to develop Bitcoin-based staking solutions due to a deep-rooted belief in the world’s oldest cryptocurrency. The goal is to transform Bitcoin into a yield-generating asset, stated Mikhil Pandey, the co-founder and chief strategy officer of pStake Finance.</p>
<p>“Having fundamental faith in Bitcoin, yields, and consistently identifying and solving crucial problems in this industry are some of the reasons behind our move towards Bitcoin. Making Bitcoin a yield-generating asset, something that hasn’t existed inherently, is very exciting,” said Pandey.</p>
<h2 id="bitcoin-defi-movement">Bitcoin DeFi Movement</h2>
<p>This initiative is part of a broader movement known as Bitcoin DeFi (BTCFi), which seeks to bring DeFi capabilities to the world’s first blockchain network. Investor interest in Bitcoin-native DeFi solutions increased with the 2024 halving. This event also marked the launch of Bitcoin Runes, a new protocol for issuing fungible tokens on the Bitcoin network.</p>
<p>Binance Labs, the independent venture capital arm of <a href="https://crypto.ro/en/exchange/binance/" rel="noopener noreferrer nofollow">Binance</a>, has also shifted its focus to BTCFi. On April 11, it announced an investment in Bitcoin-native restaking protocol BounceBit.</p>
<p>The introduction of the liquid staking solution marks pSTAKE’s first venture into Bitcoin-native DeFi, after developing its liquid staking protocol on Cosmos for the past three years.</p>
<p>BTCFi is transforming Bitcoin into a yield-generating asset for the first time. pSTAKE’s new solution is among many protocols aiming to make Bitcoin a yield–generating asset.</p>
<p>In early May, Hermetica announced the launch of the first-ever Bitcoin-backed synthetic United States dollar with yield-generating capabilities. The new synthetic dollar, USDh, slated for release in June, will offer users yields of up to 25%.</p>
<p>According to pStake’s co-founder, the BTCFi industry is witnessing the emergence of various promising products that make Bitcoin more capital-efficient. However, he believes more development is needed before BTCFi can match <a href="https://crypto.ro/en/cryptocurrencies/ethereum/" rel="noopener noreferrer nofollow">Ethereum</a>-level DeFi.</p>
<p>“Ethereum’s tech had to evolve significantly before the actual DeFi Summer in 2020. The Bitcoin DeFi landscape will likely follow a similar journey of development and progress before we see a full-fledged BTCfi Summer,” explained Pandey.</p>
<p>Turning Bitcoin into a more versatile asset represents a significant financial opportunity, added Pandey: “With less than 1% of the Bitcoin market cap in DeFi today, we could see huge growth as we develop more secure and reliable ways to generate yield on Bitcoin.”</p>

pSTAKE Finance Unveils Bitcoin Liquid Staking, Boosted by Binance Support

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