BitcoinFi on Starknet: Ushering in the Next Generation of BTCFi

Bitcoin is a symbol of financial sovereignty and the separation of money from the state. 

However, its potential as blockchain infrastructure for a thriving DeFi market still remains largely untapped compared to other blockchain ecosystems like Ethereum and Solana. 

Starknet’s pioneering Bitcoin L2 addresses this issue, transforming BTC into a productive asset. At the same time, it facilitates trustless, scalable DeFi directly on Bitcoin’s foundation, enabling a new chapter in BitcoinFi.

TL;DR

• Starknet is pioneering BitcoinFi with its dedicated Bitcoin Layer 2, offering staking, borrowing, swapping, and more.
• Xverse wallet simplifies access with an in-app bridge, enabling seamless BTC transfers to Starknet. 
• Ecosystem growth is backed by 100M STRK incentives and integrations with Avnu, Vesu, and Extended (and more), all accessible via Xverse.

Starknet Brings BitcoinFi to Everyone 

Until recently, bitcoin HODLers were largely left on the sidelines of DeFi, having to let their BTC sit idle as they missed out on yield opportunities that Ethereum users enjoyed.

Starknet has filled this gap with trustless BTCFi, allowing users to stake BTC to secure the network, borrow stablecoins without selling their crypto, and access yield-generating strategies. This is all made possible with post-quantum secure, battle-tested zk-STARK-proofs technology.

The platform has positioned itself as Bitcoin’s execution layer, using advanced ZK technology to scale BTC transactions to thousands per second at a drastically low cost threshold. As such, it has become an L2 that settles directly on Bitcoin, preserving its security and extending its capabilities.

At all times, Starknet has kept working on implementing new solutions, like its research into and advocacy for the OP_CAT opcode, to create trust-minimized bridges to Bitcoin. This commitment positions it as a true Bitcoin L2, dedicated to unlocking Bitcoin’s dormant capital.

With its integrated BitcoinFi capabilities, Xverse is your gateway to this new area of BTCFi, making it easier than ever to bridge your BTC to Starknet. This way, it allows you to earn, borrow, and trade BTC without leaving your wallet.

“Xverse’s integration with Starknet is unlocking the true potential of BTCFi, allowing users to seamlessly bridge, stake, and earn on their BTC right from a native Bitcoin wallet. It brings scalable DeFi to Bitcoin, at the same time retaining the security and self-custody our users demand,” explains Ken Liao, founder and CEO of Xverse. 

Here’s What You’ll Find in BitcoinFi on Starknet, All Accessible From Your Xverse Wallet 

Xverse makes accessing BTCFi on Starknet super simple and safe. Here’s a breakdown of what you can already do in the growing BitcoinFi space on the new L2: 

Bridge BTC to Starknet 

You can seamlessly bridge your BTC right from Xverse, transferring it to Starknet. Once bridged, your BTC becomes productive for DeFi use, allowing you to deposit your coins in a variety of BTCFi apps. 

Borrow Against Your Bitcoin

If you need liquidity but don’t want to sell your BTC, you can borrow stablecoins or other assets at competitive rates and use your bitcoin as collateral by locking wBTC in a secure vault. Starknet’s low fees, which often amount to less than a cent, ensure cost-efficiency. 

Swap WBTC, Runes, Stablecoins & More

The availability of optimal rates and gas-free trades on eligible transactions supports effortless trading of assets. You can instantly swap your wBTC for other assets, like the native Starknet token STRK, Runes, or stablecoins, directly in-app through trustless, zero-slippage execution. 

Provide Liquidity to LP Rewards

You can boost your earnings and become a market maker by providing liquidity to pools on Starknet dApps, earning trading fees and additional LP incentives. 

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The LP rewards are boosted by the massive 100 million STRK incentives program launched as part of Starknet’s BTCFi Season, designed to kickstart the flywheel. As liquidity grows and assets flow in, yields will become more lucrative.

Explore the Starknet BTCFi dApp Universe 

While it’s still early days for BTCFi on Starknet, there are already plenty of BitcoinFi dApps for you to explore. Here are a few we’re excited about: 

Avnu

Avnu is a DEX aggregator that pulls liquidity from all on-chain sources (AMMs, CLOB DEXs, and market makers) to provide the best swap rates across Starknet. In practice, this means you can swap any token on Starknet, including BTC-wrapped ones or STRK, with minimal slippage. 

Besides, Avnu offers advanced trading features like DCA (dollar-cost averaging) orders and chart views with up to one year of history, making it a one-stop hub for Bitcoin trading on Starknet. For Xverse users, Avnu’s comprehensive capabilities are just a click away for your trading needs.

Vesu 

Vesu is a crypto lending protocol built on Starknet that allows you to lend assets (like ETH, STRK, or Bitcoin-pegged tokens) and earn from borrower interest plus special incentives from Starknet’s DeFi programs. Additionally, you can earn yield or borrow against your collateral. 

With its specialized ‘Multiply’ feature, you can create customized leveraged looping yield strategies in a single click or tap. This all makes Vesu the go-to place for earning income on your dormant BTC-pegged assets or taking out DeFi loans.

Extended 

Extended is a hyper-efficient perpetual swaps exchange built on Starknet that lets traders open leveraged positions across more than 50 crypto and traditional asset pairs with lightning-fast settlement.

That said, Extended’s capabilities go a lot further than a simple trading platform. It has on-chain vaults where users can deposit USDC to earn a share of trading fees and team market-making profits.

Beyond these, other partners supporting Xverse and Starknet include RemusDEX, Garden, Atomiq Labs, Uncap Finance, and Carmine Options AMM. 

Explore BitcoinFi on Starknet, All From Your Xverse Wallet 

Now you can be an active participant in a growing ecosystem of BTCFi dApps on Starknet, all connectable via Xverse. Instead of letting your BTC sit idle, you can put it to work in a secure, scalable way on Starknet.

Download Xverse today and bridge BTC to Starknet to enter the next era of BitcoinFi.

FAQs

Where can I buy Starknet tokens?

You can easily purchase STRK tokens in your Xverse wallet using the onramp feature for fiat buys or by swapping BTC for STRK without leaving the wallet. Simply select BTC as the source asset and STRK as the asset you wish to buy, and execute the swap. You will need some bitcoin to pay for the transaction, and Xverse will handle the rest.