BTCFi Launched

Bifrost
Bifrost
Published in
4 min readApr 17, 2024

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BTCFi officially launched

In what we believe to be a significant step forward for the blockchain ecosystem, we are proud to announce the official launch of BTCFi, a service that leverages Bitcoin to empower Bitcoin users like never before.

BTCFi is a decentralized finance (DeFi) solution that puts the power of Bitcoin in the hands of individuals, allowing them to borrow, lend, and generate yields while maintaining their BTC holdings. Built atop Bifrost’s robust cross-chain infrastructure, BTCFi offers a suite of innovative features that redefine the way users interact with their Bitcoin.

During our pre-launch we saw over 120 BTC deposited to get first access to the service, and we are overwhelmed by the reception and enthusiasm BTCFi is met with. We hope many more will actively utilize the service to broaden the usage of Bitcoin, and in turn, contribute to the ever-growing Bitcoin ecosystem.

Here are some of many features that differentiates BTCFi from its competitors.

Decentralization and Security

At the core of BTCFi lies an ethos that closely follows that of Bifrost Network, a commitment to decentralization and security. By operating on the Bifrost Network, BTCFi is one of the first completely decentralized CDPs that uses only Bitcoin as a collateral, an equally decentralized asset. In doing so, BTCFi eliminates the need for centralized intermediaries, ensuring that users’ assets and BtcUSD minted are immune from any centralized parties and possible risks they pose.

Competitive Borrowing Rates

One of the standout features of BTCFi is its industry-leading borrowing rates. Users can access stable BtcUSD loans at a mere 3.5% — a rate significantly lower than the industry standard, making it an attractive option for those seeking to leverage their BTC holdings without compromising their long-term investment.

BtcUSD — versatile, stable, and completely decentralized

The introduction of BtcUSD, a Bitcoin-backed stablecoin, is a game-changer within the BTC ecosystem. Less susceptible to volatility than any other cryptocurrency-backed stablecoin, BtcUSD provides users with the option of having stablecoin to use while maintaining exposure to the upside potential of Bitcoin. This versatile token can be used for a variety of purposes, from borrowing to generating passive income through lending and liquidity provisioning.

Expanding Horizons Beyond Bifrost

The integration of BTCFi with other blockchain networks further amplifies its utility. Users can now bridge their BtcUSD tokens to external platforms, unlocking a world of possibilities beyond the Bifrost ecosystem. This cross-chain compatibility empowers Bitcoin holders to seamlessly participate in a diverse range of DeFi applications and services.

How BTCFi can be used

BTCFi can be used in myriad ways to generate profit for BTC holders. While there are no right or wrong answers in formulating your strategies, we have listed some of the examples in which BTCFi can be used to generate yield for you.

  1. Bifrost’s own decentralized application, BiFi, an excellent way to generate yield while minimizing exposure to price fluctuations and risks involved. You can deposit BtcUSD to BiFi to lend to others to generate yield without risk of Impermanent Loss.
  2. You can also use BtcUSD in other DApps that support it, as ALEX on Stacks will, in a similar fashion as described above.
  3. If you have a strategy of investing into another cryptocurrency, you can do so through BtcUSD. For example, if you wanted to hold Bitcoin and have Ethereum as well, you can do so through BTCFi. By swapping BtcUSD for Ethereum, now you can hold both, and enjoy the upside provided by both.
  4. Another way is to export BtcUSD out to other blockchain ecosystems, in a currency that is supported by them. Leveraging the robust cross-chain engine Bifrost empowers BTCFi with, users can access DApps across Ethereum, Stacks, BNB Chain, Arbitrum and more.

These are all but a few of the possibilities enabled by BTCFi, and we expect that there will be many more creative users out there that can maximize their earning through various means. This is a new expansion into DeFi space for BTC holders, and we are excited to see how BTCFi will evolve.

With the launch of BTCFi, Bifrost Network has solidified its position as a pioneer in the DeFi space, offering a comprehensive solution that puts the power of Bitcoin-backed finance in the hands of users. As the Bitcoin ecosystem continues to evolve, BTCFi will prove to be an invaluable service for expansion of the ecosystem and in providing additional capabilities to Bitcoin users. Use BTCFi to expand the DeFi ecosystem!

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Bifrost
Bifrost

Bifrost is the ultimate cross-chain L1 blockchain welcoming all DApps! www.bifrostnetwork.com