TL;DR:
- Bifrost, the leading player of direct-Bitcoin BTCFi, and Core, the leading Bitcoin-aligned Layer 1, have entered into a strategic partnership
- Now, Bitcoin assets on the Core can be used as collateral for BTCFi, and BtcUSD issued through BTCFi can be utilized across various DeFi services on Core.
- BTCFi stands out as the first Collateralized Debt Position (CDP) protocol ever launched on the Core.
*CDP (Collateralized Debt Position) refers to a service that allows users to borrow assets like stablecoins using cryptocurrency as collateral.
Overview
Bifrost has formed a strategic partnership with Core, the leading Bitcoin-aligned Layer 1, boasting the highest TVL.
BTCFi now operates as a dApp on the Bifrost Network while fully supporting Core blockchain. Bitcoin assets on Core can now be used as collateral for BTCFi. WBTC and BTCB from Core will be supported initially, and even the soon-to-be-released liquid staking token, LstBTC, will be integrated upon launch. Managed by the Core foundation with a market cap of approximately $1.4B and a TVL of $900M, Core’s LstBTC is distinct from other liquid staking BTC tokens in terms of security. This partnership marks the beginning of a new era for Bitcoin DeFi, combining BTCFi’s innovative Bitcoin liquidity service with the secure infrastructure of Core.
Meaning of the Partnership
BTCFi holds great significance as the first-ever Collateralized Debt Position (CDP) protocol to operate on Core. Through this partnership, Bitcoin assets on Core can now be used as collateral to issue BtcUSD, which can then be utilized across various DeFi services on Core. This transformation turns Bitcoin on Core from a simple store of value into a liquid asset through BTCFi.
The partnership will be implemented in two phases:
- Support for BTCB & WBTC
In the first phase, BTCB and WBTC on Core will be available as collateral assets for BTCFi. This allows users to mint BtcUSD, thereby enabling liquidity for BTCB and WBTC on Core. - Support for Core’s LstBTC
In the second phase, Core’s upcoming unique liquid staking token, LstBTC, managed by a foundation overseeing assets worth approximately 2 trillion KRW, will also be supported as collateral for BTCFi. This maximizes the potential of Core’s liquid staking assets and accelerates the liquidity of LstBTC.
How Users Benefit
This collaboration opens the door to new opportunities for Bitcoin holders:
- Mint BtcUSD Using Core-Backed Bitcoin
Stake WBTC, BTCB, and LstBTC on Core to mint BTCFi’s Bitcoin-backed stablecoin, BtcUSD, while retaining exposure to your Bitcoin’s value. - Earn Rewards & Core Sparks Incentives
BtcUSD holders can grow their assets by trading or providing liquidity, with additional incentives from Core Ignition, enhancing earning potential in Core’s thriving ecosystem.
About Core
Core serves as the Proof of Stake layer for Bitcoin as the first enabler of Self-Custodial Bitcoin Staking, which secures a fully EVM-compatible BTCfi ecosystem. Since April 2024, over 5,399 BTC valued at more than $522 million have been staked with Core, enhancing Bitcoin’s utility and security. Core is the most Bitcoin-aligned EVM blockchain with more than 78% of Bitcoin mining hash power contributing to the network’s security. This breakthrough has amassed millions of Core adopters — over 30M unique addresses, 323M+ transactions, and over $900M TVL since its mainnet launch in January 2023.
About Bifrost
BTCFi, powered by Bifrost Network’s cross-chain technology, is a pioneering Bitcoin asset management service that bridges Bitcoin with multichain ecosystems. As the foremost native-Bitcoin collateralized debt position (CDP) protocol, BTCFi empowers users to unlock liquidity without selling their Bitcoin. With BTCFi, users can stake Bitcoin to mint BtcUSD, a Bitcoin-backed stablecoin, while enjoying a low, fixed interest rate of 3.5% and maintaining exposure to Bitcoin’s value. Offering features like a 50% over-collateral ratio and the ability to earn a stable annual yield of 2–3% in native BTC, BTCFi redefines Bitcoin’s utility.
The Blueprint of Bifrost
Together, BTCFi and Core aim to revolutionize Bitcoin DeFi:
- Maximizing Bitcoin’s Utility
By integrating Bitcoin-backed assets, users can unlock Bitcoin’s liquidity while retaining its value. - Seamless and Secure Solutions
Core and Bifrost’s EVM compatibility ensures a smooth user experience, bridging traditional Bitcoin utility with modern DeFi innovations. - Expanding Ecosystem Opportunities
This partnership connects Core and Bifrost ecosystems, opening up new horizons for Bitcoin-backed financial products.
Looking ahead, Bifrost will continue to support the expansion of Bitcoin DeFi and Bitcoin-based financial products, driving growth in the Bitcoin ecosystem. Stay tuned for more groundbreaking innovations from Bifrost!
