The Problem
Last updated
Last updated
As illustrated in the image above, there is a Bitcoin dilemma that has yet to be solved.
Native BTC Staking is secure and decentralized but lacks utility and liquidity. Users benefit from security but miss out on opportunities to use their BTC in DeFi across multiple blockchains.
Wrapped Solutions provide more utility and liquidity, enabling BTC holders to participate in DeFi ecosystems. However, they introduce drawbacks such as centralization and reduced security.
This creates a dilemma for BTC holders:
Option 1 - Choose native BTC staking, which offers security and decentralization but lacks liquidity and utility.
Option 2 - Opt for wrapped solutions that provide greater utility at the cost of security and decentralization.
Currently, no solution effectively combines the best of both worlds, leaving BTC holders without a satisfactory option for staking their assets while maintaining both security and utility.
