Hold Bitcoin?This is how to use it in DeFi

The long-awaited day finally became the first Bitcoin on October 19th (Bitcoin) Exchange Traded Fund (ETF) Go live on the New York Stock Exchange, Making encrypted assets become the focus of attention of mainstream news media and alternative media.

Although the ETF in question will not hold actual Bitcoin, but a futures-based tool, investors and experts across the ecosystem have largely praised its launch as proof that Bitcoin has entered the major leagues and will The coveted price target of $100,000 was quickly exceeded.

Many investors either have no access or choose not to interact with the newly launched EFT, but holders can still use various strategies to earn their BTC holdings.

The following are some strategies that BTC holders can use to earn income.

DeFi encounters BTC in BadgerDAO

BadgerDAO is an open source protocol built on the Ethereum network, and its specific goal is Build products and required infrastructure The integration of Bitcoin and decentralized finance (DeFi) needs to be simplified.

Currently, BadgerDAO has the most extensive list of BTC pairing pools where investors can provide liquidity.

BadgerDAO Bitcoin revenue product. Source: BadgerDAO

As you can see from the BadgerDAO dashboard in the picture above, there are different products, from simple Wrapped BTC (wBTC) mortgage, which can earn 1.22% to 27.98% according to the lock-in clause, to more complex liquidity provision of mortgage The LP strategy, such as the renBTC/wBTC/sBTC pool, has a return rate ranging from 7.07% to 45.37%.

It should be noted that packaging BTC and RenVM is risky, because users must give up control of the original BTC to obtain wBTC or renBTC, which violates the password of “not your key, not your password”.

For LP tokens that pair BTC with other cryptocurrencies (such as ether) (Ethereum), BADGER or a stablecoin like Tether​​(USDT) And U.S. dollar coins (USDC), holders must also consider that if the price of Bitcoin rises sharply compared with the other tokens it is paired with, it may suffer permanent losses.

Trader Joe

Trader Joe is the largest decentralization Trading platform is locked by total value (TVL) On the Avalanche Network, according to data From Defi Llama, the agreement currently has assets worth $2.18 billion.

Bitcoin-related pools on Trader Joe.Source: Trader Joe

Using wBTC on the Avalanche network requires another layer of packaging to generate wBTC.e, which can then be traded on the network or used to provide liquidity.

At the time of writing, Trader Joe provides three LP tokens with a return rate of 26.223% for the wBTC.e/AVAX pair, 16% for the wBTC.e/USDC.e pair, and wBTC.e The return rate for the /USDC.e pair is 11.9%. wBTC.e/USDT.e pair. All rewards are paid in the original JOE token of the agreement.


Raydium ranked first DeFi protocol on the Solana network, according to data From Defi Llama, currently has a TVL of $1.77 billion.

Users who wish to use their BTC on Solana can choose to pair it with USDC, USDT, serum (SRM) and Solana packaging called mSOL.

Bitcoin-related mining pools on Raydium. Source: Raydium

The rate of return provided ranges from 5.16% to 14.27%, and all rewards are paid in the platform’s native RAY tokens.

Pancake swap

PancakeSwap is TVL’s number one protocol Binance Smart Chain (BSC) and data Data from Defi Llama shows that the agreement currently locks in tokens worth 5.39 billion U.S. dollars.

In order to use Bitcoin on BSC, it must first be packaged into BTCB before it can be traded on the network.

Bitcoin-related mining pools on PancakeSwap. Source: PancakeSwap

Currently, PancakeSwap provides a 5.44% return for the BTCB/ETH pair, a 15.82% return for the BTCB/BUSD pair (Binance stablecoin, Binance USD), and a 20.79% return for the BTCB/BNB pair. All rewards are paid in the protocol’s native CAKE tokens.

related: Valkyrie Bitcoin futures-linked ETF listed on NASDAQ, the stock price fell 3% in the first hour

Decentralized Bitcoin futures

DYdX is a decentralized perpetual futures trading platform that caused a sensation in September. Thousands of dollars worth of airdrops Provide its native DYDX governance token to early adopters of the platform.

Similar to ProShares Bitcoin Strategy ETF, transactions conducted on the dYdX protocol are not settled in actual Bitcoin, but settled in USD stablecoin. Therefore, if the only goal is to directly increase Bitcoin holdings, then BTC equity holders may Not very interested in the agreement.

However, unlike government-regulated futures products that are only available for trading when the traditional market is open, dYdX provides a decentralized, 24/7 trading environment that is deeply loved by crypto enthusiasts.

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