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Author Topic: DeFi on Bitcoin, is it possible?  (Read 50 times)
zrixes (OP)
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May 14, 2021, 02:53:28 AM
 #1

Yield farming has been the rage this past year, with APYs averaging approx. 100x of what traditional banks are giving, thereby empowering everyday users to generate greater yields and moving a step closer to financial freedom.

Most folks entered the crypto space via Bitcoin, thus one would wonder if there can be yields generated on Bitcoin?

With Stacks, which pioneered the Proof-of-Transfer mechanism allows users to lock up their STX tokens for yields paid out in Bitcoin. Averaging ~12% APY

OKEx has teamed up with the Stacks foundation to bring double rewards to OKEx users for stacking STX.
Be part of the DeFi on Bitcoin movement, with double the rewards!

http://ethan-tan.com/
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bhadz
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May 14, 2021, 02:58:12 AM
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It is possible and there's already WBTC or Wrapped Bitcoin which is dedicated on it. And the valuation of 1 WBTC is just the same as the price of bitcoin.
1 WBTC = 1 BTC and whatever the price of bitcoin, it will also be the same as wrapped bitcoin. With the stacks that you've introduction, seems like 12% is a good average APY but in anyway that could still be changed right?

~Buy BTC~
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May 14, 2021, 03:10:33 AM
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Great point you've brought up! Currently WBTC happens on non-native chains(e.g. Ethereum) which are perfectly fine. But with Stacks, which is connected to Bitcoin network via PoX, we can now have DeFi natively on Bitcoin!

Yup you're right that the APY fluctuates depending on market conditions, etc. Receiving BTC payouts every 2weeks is a pretty cool thing to do, and it helps you to DCA into BTC without having to purchase BTC from exchanges or using expensive mining equipment to mine btc. Theres a huge community around stacking STX to earn BTC, check it out here

http://ethan-tan.com/
JeffBrad12
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May 14, 2021, 03:17:27 AM
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I still prefer https://www.sovryn.app/ instead of STX. RSK network secured by the bitcoin miners and this is the best alternative way to bring bitcoin into the defi.

Sovryn was using merged mining mechanism.

The security of the network on stack is not the same as RSK consider it's governed by the different group of miners but both were very solid projects IMO.

I owned some STX and SOV  Grin
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June 29, 2022, 10:25:45 AM
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I still prefer https://www.sovryn.app/ instead of STX. RSK network secured by the bitcoin miners and this is the best alternative way to bring bitcoin into the defi.

Sovryn was using merged mining mechanism.

The security of the network on stack is not the same as RSK consider it's governed by the different group of miners but both were very solid projects IMO.

I owned some STX and SOV  Grin


Any independent information on SOV security and liveliness as of 2022?

From the website, it seems that it uses a stablecoin approach, while recent market developments showed that stablecoins are not per se guaranteed to hold their stability promise.
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