BTCFi: Bifrost To Bring BtcUSD and Native Bitcoin Staking to Stacks
by Stacks Foundation team on March 14, 2024
There’s something different about Bitcoin these days. The broader community and ecosystem isn’t just curious about new use cases for Bitcoin, they’re actively building the infrastructure to enable them. Store of value? Sure. Also a lot more? Definitely.
Today, we’re announcing an ongoing cooperation with the Bifrost Foundation aimed at increasing the utility and interoperability of Bitcoin-based assets and protocols. This collaboration will be highlighted by the following:
Additionally, Pockie, the popular cross-chain capable wallet overseen by the Bifrost Foundation, will extend its support to sBTC upon its launch. The Stacks Foundation and the Bifrost Foundation will collaborate closely to support the most secure bridge option between the two networks.
Today, we’re announcing an ongoing cooperation with the Bifrost Foundation aimed at increasing the utility and interoperability of Bitcoin-based assets and protocols. This collaboration will be highlighted by the following:
- BTCFi, which offers Bitcoin holders an opportunity to earn with minimized risk, will support the sBTC asset upon its release.
- sBTC will be used as a collateral, much like WBTC and BTCB within BTCFi.
- Bifrost will bring its Bitcoin-backed stablecoin, BtcUSD to the Stacks layer.
Additionally, Pockie, the popular cross-chain capable wallet overseen by the Bifrost Foundation, will extend its support to sBTC upon its launch. The Stacks Foundation and the Bifrost Foundation will collaborate closely to support the most secure bridge option between the two networks.
“
We are excited to be part of the future of Bitcoin as envisioned by the Stacks community, and for them to share the same vision in pushing the infrastructural limits of Bitcoin. We look forward to creating services that will benefit users of both ecosystems.”
How you can use BTCfi and BtcUSD
BTCFi is elegantly simple. Users can deposit BTC to mint BtcUSD at a low rate of 3.5% APY. Users can then choose how to leverage their minted BtcUSD in different ways, on DeFi protocols in the Stacks ecosystem and that of Bifrost’s, as well as other networks and protocols that support BtcUSD.
With Bifrost’s cross-chain capabilities, users can expect to see use cases for BtcUSD to grow over time and across different ecosystems. Once sBTC is live, BTCFi will integrate sBTC for usage as a collateral within the service, allowing users of sBTC to mint BtcUSD and to utilize DeFi available to users of BtcUSD.
With Bifrost’s cross-chain capabilities, users can expect to see use cases for BtcUSD to grow over time and across different ecosystems. Once sBTC is live, BTCFi will integrate sBTC for usage as a collateral within the service, allowing users of sBTC to mint BtcUSD and to utilize DeFi available to users of BtcUSD.
At the Stacks Foundation, we’re committed to providing optionality to developers and users and to collaborating with the best projects in the ecosystem to grow the Bitcoin economy together. The intent behind the BTCFi protocol very much shares that ethos and we look forward to collaborating moving forward!