• Latest
the growing defi market on bitcoin: what’s yielding already?

The Growing Defi Market on Bitcoin: What’s Yielding Already?

November 13, 2021
ygg sea surpasses 10,000 scholarships in just six months of launch

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
mintable launches industry changing gas free minting service on ethereum

Mintable Launches Industry Changing Gas Free Minting Service on Ethereum

May 1, 2022
5 projects enabling smart contract development on bitcoin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022
bitcoin atm installed in mexico's senate building

Bitcoin ATM installed in Mexico’s Senate Building

April 27, 2022
cross chain services play a crucial role in facilitating continued adoption of defi applications

Cross-Chain Services Play a Crucial Role in Facilitating Continued Adoption of DeFi Applications

April 26, 2022
justin sun launches usdd, integrating the blockchain world and the real world with the decentralized stablecoin

Justin Sun Launches USDD, Integrating the Blockchain World and the Real World with the Decentralized Stablecoin

April 25, 2022
nfts: the next musical revolution

NFTs: The Next Musical Revolution

April 24, 2022
things you should know before investing in nfts

Things You Should Know Before Investing in NFTs

April 24, 2022
what are wrapped tokens?

What Are Wrapped Tokens?

April 23, 2022
what is the future of ethereum (eth)?

What is the future of Ethereum (ETH)?

April 22, 2022
green gaming

Everything You Need to Know About Play-to-Earn on Algorand in 2022

April 21, 2022
$ape going bananas as rumors of upcoming land sale of bayc metaverse gather momentum

$APE Going Bananas As Rumors of Upcoming Land Sale of BAYC Metaverse Gather Momentum

April 21, 2022
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
CoinNewsDaily
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
No Result
View All Result
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
No Result
View All Result
CoinNewsDaily
No Result
View All Result
Home Bitcoin

The Growing Defi Market on Bitcoin: What’s Yielding Already?

coinnewsdaily by coinnewsdaily
November 13, 2021
in Bitcoin, Business
0
the growing defi market on bitcoin: what’s yielding already?
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

 

America
Source: Adobe/thodonal

Other blockchains are being added to the growing decentralized finance (DeFi) market, which is currently dominated by Ethereum (ETH). What may come as a surprise to some is that Bitcoin (BTC) is included in this list.

Related articles

ygg sea surpasses 10,000 scholarships in just six months of launch

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
5 projects enabling smart contract development on bitcoin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022

Please continue reading to find out more about the developing Bitcoin DeFi ecosystem and the kind of returns you may anticipate to earn on your Bitcoin holdings.

DeFi on Bitcoin

Bitcoin-native DeFi apps are emerging that are powered by Bitcoin Layer 2 (L2) smart contract protocols, such as RootStock (RSK) or Stacks, and are secured by Bitcoin. Bitcoin-native DeFi apps aspire to provide next-generation financial services that are built on Bitcoin.

The market for decentralized Bitcoin-native yielding goods is growing, despite the fact that the Bitcoin-native DeFi market is still modest compared to what’s offered on Ethereum, Binance Smart Chain, and other major DeFi destinations.

Annual percentage yield
Source: rsk.co

Current prominent use cases in the Bitcoin DeFi market include lending, trading, stakeholding, and stablecoins, which are all based on the Bitcoin blockchain.

Bitcoin-native DeFi apps to check out

Consider some of the main Bitcoin DeFi platforms, as well as the decentralized products and services that they are currently offering, before continuing on.

Sovryn

Sovryn is a decentralized bitcoin trading and lending platform that operates on the Ethereum blockchain. Sovryn is a permissionless, non-custodial platform that makes use of smart contracts to provide Bitcoin borrowing, lending, yield farming, and margin trading.

Apy

A variety of advantages over tokenized Bitcoin on Ethereum, such as improved storage handling and data structure, as well as lower transaction fees, are provided by Sovryn, which is constructed on top of RSK.

Sovryn allows you to earn money by lending bitcoins to borrowers and margin traders, and you can utilize it to do so. Furthermore, it is possible to trade bitcoin for USD stablecoins as well. Other features available on Sovryn include automated market maker (AMM) pools, yield farming, and a variety of other options.

Money on Chain

It provides a bitcoin-collateralized stablecoin, an interest-bearing digital asset for BTC token holders, and a decentralized leverage exchange, all of which are powered by blockchain technology.

Money on Chain aims to address the issue of bitcoin volatility while also reducing the counterparty risks associated with other stablecoins, such as those that rely on traditional bank accounts or less developed decentralized networks. Money on Chain is currently in beta testing.

automated market maker

Money On Chain leverages Bitcoin as collateral for the stablecoin in order to achieve this goal. RSK smart contracts secure the collateral, which is not stored in a third-party bank account but is instead provided as a token that is 1:1 in value to bitcoin.

In order to operate, Money On Chain requires the use of four tokens: Dollar on Chain (DOC), a stablecoin with a USD price pegged to it, the BitPro token (BPro), a token that allows Bitcoin holders to earn interest on their bitcoin while also gaining free leverage and the BTCx, which represents a leveraged long bitcoin position. The system also includes the Money on Chain (MOC) token, which serves as the governance token for the platform.

Atomic Finance

Using a covered call strategy driven by DLCs, Atomic Finance allows bitcoin holders to create yield on their bitcoin while maintaining custody of their bitcoin (Discreet Log Contracts). A covered call is a strategy in which you retain a token while concurrently selling a call position on the token, with the option premium serving as your yield generator.

bank

Discreet Log Contracts enable non-custodial speculation to take place directly on top of the Bitcoin network through the use of a private key. Because it combines the security of Bitcoin with the greater flexibility of smart contracts, the system is able to deliver non-custodial yields through financial derivatives such as call and put options.

The protocol is now in beta testing, with additional improvements scheduled for release in the near future.

AlexGo

AlexGo is a decentralized finance protocol based on Bitcoin that operates on the Stacks blockchain. It is open-source and free to use. By connecting to Bitcoin, Stacks makes it possible for smart contracts and digital assets to benefit from the security, capital, and network capabilities of the cryptocurrency.

bank account

To borrow bitcoin at variable rates, lend your bitcoin and earn interest, maximize earnings with long Bitcoin holdings, and manage risk with short Bitcoin positions, you should be able to use AlexGo.

Remember that AlexGo is still developing their testnet, which is vital to keep in mind.

DeFiChain

A decentralized system, DeFiChain, which is powered by the Bitcoin network, provides financial services to its users. The system is based on a hybrid proof-of-stake (PoS)/proof-of-work (PoW) mechanism, and it is tethered to the Bitcoin blockchain through the Merkle root, which provides an additional layer of security to the network.

bank accounts

Furthermore, you can borrow and lend using the platform’s native token, DFI, through collateralized systems, wrap tokens, tokenize assets, swap on their decentralized exchange, and perform a variety of other functions.

At the time of writing, DeFiChain had more than USD 800 million in smart contracts locked away.

Tropykus Finance

Tropykus Finance is a decentralized finance protocol that aims to connect Bitcoin (BTC) investors with decentralized finance (DeFi) opportunities in emerging areas, including Latin America.

The protocol makes use of RSK smart contracts to provide decentralized lending and credit products that you can profit from by earning interest on your loan or credit.

BETA

Other Bitcoin-native DeFi apps you can check out include Defiant and rLending.

What are the yields like in Bitcoin DeFi?

Bitcoin hodlers can earn above-average yields on both CeFi (centralized finance) and DeFi lending platforms, which are operating at a time when traditional lenders are paying historically low interest rates to customers.

Take, for example, Gemini Earn, which operates on the lower end of the yield spectrum and lets you to earn up to 1.49 percent APY (annual percentage yield) on your Bitcoin. Bitcoin deposits made through BlockFi, on the other hand, earn up to 5 percent annual percentage yield (APY).

As far as Bitcoin DeFi is concerned, the following are some predicted returns derived from the websites of the dapps at the time of publication.

 

Tropykus Finance

 

  • 4.00% APR (Annual Percentage Rate) on rBTC microsavings
  • 7.64% APR on DOC token
  • 2.16% APR on RIF token
Sovryn

 

  • 4.55% APY on rBTC
  • 158.61% APY on SOV/rBTC AMM
  • 202.52% APY on XUSD/RBTC AMM
Money on Chain

 

  • 28.50% APR BPro Token historical performance
  • 13.73% on MoC staking

Securing decentralized finance protocols using Bitcoin may result in a more stable decentralized finance landscape, which has been plagued by insecure infrastructure for a long time now.

It remains to be seen whether the “DeFi degens,” who are overwhelmingly Ethereum supporters, will make the switch to Bitcoin.
Perhaps if the yields are sufficient to justify the investment.

Tags: Annual percentage yieldApyautomated market makerBitcoinBitcoin networkBitcoin TradingBTC holdingsCeFicontractsCryptoDecentralized financeDeFidigital assetETHEthereumfinance protocolfinance protocolsLeverageLongmarket makeroptionRangeStakingyield farming
Share76Tweet47
Previous Post

Ethereum ‘has to bounce’ as ETH bulls pin $5K rally hopes on critical support channel

Next Post

Pew Research Center: At least 16% of Americans have owned crypto

coinnewsdaily

coinnewsdaily

CoinNewsDaily.com is an online Crypto Coin News Website that aims to provide latest trendy news from market and around the world.

Related Posts

ygg sea surpasses 10,000 scholarships in just six months of launch
Alt Coin

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
5 projects enabling smart contract development on bitcoin
Alt Coin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022
bitcoin atm installed in mexico's senate building
Bitcoin

Bitcoin ATM installed in Mexico’s Senate Building

April 27, 2022
cross chain services play a crucial role in facilitating continued adoption of defi applications
Alt Coin

Cross-Chain Services Play a Crucial Role in Facilitating Continued Adoption of DeFi Applications

April 26, 2022
justin sun launches usdd, integrating the blockchain world and the real world with the decentralized stablecoin
Alt Coin

Justin Sun Launches USDD, Integrating the Blockchain World and the Real World with the Decentralized Stablecoin

April 25, 2022
what are wrapped tokens?
Bitcoin

What Are Wrapped Tokens?

April 23, 2022
Load More
Next Post
americans have owned crypto

Pew Research Center: At least 16% of Americans have owned crypto

Categories

  • Alt Coin
  • Bitcoin
  • Business
  • Ethereum
  • ICO
  • Litecoin
  • Mining
  • NFT
  • Ripple
  • Tech
  • Trading

What New here?

  • YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch
  • Mintable Launches Industry Changing Gas Free Minting Service on Ethereum
  • 5 Projects Enabling Smart Contract Development on Bitcoin

Subscribe to Get More!

Loading
  • About Us
  • Contact Us
  • Privacy & Policy

© 2018-2021 CoinNewsDaily.com by CoinNewsDaily Inc. Crafted with Love by iFtiDev

No Result
View All Result
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining

© 2018-2021 CoinNewsDaily.com by CoinNewsDaily Inc. Crafted with Love by iFtiDev

  • bitcoinBitcoin(BTC)$23,019.000.33%
  • ethereumEthereum(ETH)$1,592.540.90%
  • tetherTether(USDT)$1.000.09%
  • binancecoinBNB(BNB)$308.821.31%
  • rippleXRP(XRP)$0.4127120.88%
  • cardanoCardano(ADA)$0.3880972.59%
  • dogecoinDogecoin(DOGE)$0.0902655.19%
  • matic-networkPolygon(MATIC)$1.145.44%
  • okbOKB(OKB)$38.507.82%
  • solanaSolana(SOL)$24.422.75%
  • polkadotPolkadot(DOT)$6.521.61%
  • shiba-inuShiba Inu(SHIB)$0.0000123.88%
  • litecoinLitecoin(LTC)$88.641.15%
  • tronTRON(TRX)$0.0630240.85%
  • daiDai(DAI)$1.000.08%
  • cosmosCosmos Hub(ATOM)$13.453.86%
  • chainlinkChainlink(LINK)$7.382.43%
  • leo-tokenLEO Token(LEO)$3.71-3.30%
  • moneroMonero(XMR)$181.435.49%
  • ethereum-classicEthereum Classic(ETC)$22.011.60%
  • bitcoin-cashBitcoin Cash(BCH)$133.92-0.71%
  • stellarStellar(XLM)$0.0939712.50%
  • crypto-com-chainCronos(CRO)$0.0816491.41%
  • filecoinFilecoin(FIL)$5.370.48%
  • algorandAlgorand(ALGO)$0.2583264.60%
  • vechainVeChain(VET)$0.0243531.28%
  • internet-computerInternet Computer(ICP)$5.932.25%
  • aaveAave(AAVE)$87.150.57%
  • eosEOS(EOS)$1.100.15%
  • elrond-erd-2MultiversX(EGLD)$44.923.56%
  • theta-tokenTheta Network(THETA)$1.09-2.08%
  • tezosTezos(XTZ)$1.122.39%
  • paxos-standardPax Dollar(USDP)$1.000.07%
  • bitcoin-cash-svBitcoin SV(BSV)$43.87-0.31%
  • huobi-tokenHuobi(HT)$5.101.69%
  • havvenSynthetix Network(SNX)$2.471.57%
  • pancakeswap-tokenPancakeSwap(CAKE)$4.031.50%
  • iotaIOTA(MIOTA)$0.2393350.83%
  • makerMaker(MKR)$670.352.45%
  • zcashZcash(ZEC)$45.89-0.09%
  • neoNEO(NEO)$8.311.07%
  • dashDash(DASH)$51.621.14%
  • zilliqaZilliqa(ZIL)$0.0297074.60%
  • basic-attention-tokenBasic Attention(BAT)$0.2660981.84%
  • compound-governance-tokenCompound(COMP)$56.795.83%
  • nemNEM(XEM)$0.0392990.11%
  • Elrond ERDElrond ERD(ERD)$0.0259290.00%
  • kusamaKusama(KSM)$37.336.86%
  • bitcoin-goldBitcoin Gold(BTG)$17.581.93%
  • wavesWaves(WAVES)$2.838.62%
  • qtumQtum(QTUM)$2.680.92%
  • sushiSushi(SUSHI)$1.342.30%
  • ftx-tokenFTX(FTT)$1.89-21.50%
  • yearn-financeyearn.finance(YFI)$7,686.952.80%
  • golemGolem(GLM)$0.2498881.71%
  • omisegoOMG Network(OMG)$1.523.30%
  • ontologyOntology(ONT)$0.2184590.31%
  • digibyteDigiByte(DGB)$0.0109611.35%
  • umaUMA(UMA)$2.050.73%
  • ethlendAave [OLD](LEND)$0.53-3.08%
  • UniswapUniswap(UNI)$2.4438.80%