Starknet launches yield-bearing Bitcoin staking as part of its BTCFi expansion, offering a $100 million STRK incentive program and enabling staking via tokenized wrappers like WBTC and LBTC.
The initiative aims to integrate Bitcoin into DeFi on Ethereum Layer 2, positioning Starknet as a key BTCFi execution layer, impacting Bitcoin liquidity and DeFi market dynamics.
Starknet Unveils $100M STRK Incentive for Bitcoin Holders
Starknet has introduced a Bitcoin yield-bearing staking option as part of its ambitious BTCFi expansion. This launch is marked by a significant $100 million STRK incentive program designed to attract Bitcoin holders.
The initiative aims to integrate Bitcoin into DeFi ecosystems on Ethereumโs Layer 2, allowing users to stake through tokenized wrappers like WBTC and earn yields. StarkWareโs leadership, including Eli Ben-Sasson, supports the expansion into BTCFi space, envisioning new decentralized finance opportunities.
Bitcoin Staking on Starknet to Influence DeFi Dynamics
Bitcoin holders now have a pathway to secure economic activity on Starknet through high-throughput zk rollups. The incentive is likely to attract both retail and institutional investors, impacting the overall DeFi landscape positively.
The initiative fulfills a promise to unleash Bitcoinโs power. The technology merges zk-STARK cryptography with Bitcoin holdings, providing post-quantum security while generating real yield for holders. This approach aligns with Satoshiโs vision of true ownership. โ Eli Ben-Sasson, CEO, StarkWare
Historical trends suggest a potential increase in TVL and market activity on Starknet, with Bitcoinโs integration boosting liquidity. Past events like Ethereumโs liquid staking set a precedent, promising competitive traction in Bitcoinโs capital flow.
Starknetโs Move Could Draw Significant TVL, Experts Say
Similar initiatives, such as those by Babylon and Botanix, have leveraged staked Bitcoin for external PoS chains. The trend of utilizing staked assets for economic activities is evident in early protocols like Lido for Ethereum.
Experts from Kanalcoin predict that Starknetโs move could considerably attract TVL, positioning it as a major player in the BTCFi sector. Analysts highlight the strategic application of zk-rollups as a transformative step beneficial for stakeholders.
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