Starknet launches Bitcoin staking and yield products in BTCFi expansion
ChainCatcher news, according to The Block, Bitcoin staking has been launched on Starknet. The project claims this is the first time trustless Bitcoin staking has been realized on a Layer2 network.
Holders can retain custody of their assets while earning rewards and supporting network consensus. Starknet refers to this as a "Bitcoin strategy for veteran Bitcoin holders." This move does not alter the Bitcoin base layer but instead relies on wrapped versions of BTC, such as WBTC, tBTC, Liquid Bitcoin, and SolvBTC, which can be delegated for staking on Starknet.
At the same time, the Starknet Foundation will allocate 100 million STRK (12 million USD) to promote the development of the BTCFi ecosystem, including incentivizing Bitcoin-collateralized lending, making Starknet the most cost-effective place to use Bitcoin as collateral and implement yield strategies.
In addition, Re7 Capital announced on Tuesday that it plans to launch a new Bitcoin-denominated yield product on Starknet in October. By combining off-chain derivatives, DeFi strategies, and Bitcoin staking, this product will generate returns directly in Bitcoin. The fund will be tokenized to facilitate broader investor participation.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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