Holding Bitcoin? Here’s how to put it to work in DeFi


The long-awaited day lastly got here on Oct. 19 as the primary Bitcoin (BTC) exchange-traded fund (ETF) went live on the New York Stock Exchange, thrusting the crypto asset into the limelight throughout mainstream information retailers and various media alike. 

Even though the ETF in query will maintain no precise Bitcoin and is as a substitute a futures-based instrument, buyers and pundits throughout the ecosystem have largely hailed its launch as proof that Bitcoin has hit the massive leagues and can quickly surpass the coveted $100,000 value goal.

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Many buyers both don’t have entry or will select to not work together with the newly launched EFT, however holders can nonetheless use quite a lot of methods to earn a yield on their BTC holdings.

Right here’s a have a look at some methods BTC holders can use to earn a yield.

DeFi meets BTC in BadgerDAO

BadgerDAO is an open-source protocol constructed on the Ethereum community that has the particular aim of building products and the required infrastructure wanted to simplify the combination of Bitcoin into decentralized finance (DeFi).

At the moment, BadgerDAO has probably the most intensive record of BTC paired swimming pools the place buyers can present liquidity.

BadgerDAO Bitcoin yield choices. Supply: BadgerDAO

As seen within the picture above from the BadgerDAO dashboard, there are completely different choices from the straightforward staking of Wrapped BTC (wBTC), which may earn a yield starting from 1.22% to 27.98% relying on the phrases of the lockup, to the staking in additional advanced liquidity supplier (LP) methods just like the renBTC/wBTC/sBTC pool, which gives a yield starting from 7.07% to 45.37%.

It is very important notice that there are dangers concerned with wrapping BTC and RenVM as a result of a person should relinquish management of the unique BTC to be able to get hold of both wBTC or renBTC, violating the crypto code of “not your keys, not your crypto.”

For LP tokens that pair BTC with different cryptocurrencies comparable to Ether (ETH), BADGER or stablecoins like Tether (USDT) and USD Coin (USDC), holders should additionally think about the potential of struggling an impermanent loss if the value of Bitcoin will increase by a major quantity in comparison with the opposite token it’s paired with.

Dealer Joe

Dealer Joe is the most important decentralized trading platform by total value locked (TVL) on the Avalanche community, in accordance with data from Defi Llama, with $2.18 billion value of belongings at the moment on the protocol.

Bitcoin-related swimming pools on Dealer Joe. Supply: Dealer Joe

Utilizing wBTC on the Avalanche Community requires one other layer of wrapping that produces wBTC.e, which may then be traded on the community or used to supply liquidity.

On the time of writing, Dealer Joe is providing a yield on three LP tokens, together with a return of 26.223% for the wBTC.e/AVAX pair, 16% for the wBTC.e/USDC.e pair, and 11.9% for the wBTC.e/USDT.e pair. All rewards are paid out within the protocol’s native JOE token.


Raydium is the top-ranked DeFi protocol on the Solana network, in accordance with data from Defi Llama, and at the moment boasts a TVL of $1.77 billion.

Customers who want to use their BTC on Solana have the choice of pairing it with USDC, USDT, Serum (SRM) and a wrapped type of Solana referred to as mSOL.

Bitcoin-related swimming pools on Raydium. Supply: Raydium

The yields provided vary from 5.16% to a excessive of 14.27%, with all rewards paid out within the platform’s native RAY token.


PancakeSwap is the No. 1 ranked protocol by TVL on the Binance Smart Chain (BSC) with data from Defi Llama exhibiting that $5.39 billion value of tokens is at the moment locked on the protocol.

To be able to make the most of Bitcoin on the BSC, it should first be wrapped to turn out to be BTCB, which may then transact on the community.

Bitcoin-related swimming pools on PancakeSwap. Supply: PancakeSwap

At current, PancakeSwap is providing a 5.44% return for the BTCB/ETH pair, a 15.82% return for the BTCB/BUSD pair (Binance’s stablecoin, Binance USD) and 20.79% for the BTCB/BNB pair. All rewards are paid out within the protocol’s native CAKE token.

Associated: Valkyrie Bitcoin futures-linked ETF launches on Nasdaq, with share prices dropping 3% in first hour

Decentralized Bitcoin futures

DYdX is a decentralized perpetual futures buying and selling platform that made waves again in September when it airdropped thousands of dollars worth of its native DYDX governance token to early adopters of the platform.

Much like the ProShares Bitcoin Technique ETF, trades made on the dYdX protocol don’t settle in precise Bitcoin however as a substitute in a USD stablecoin, so BTC stakers is probably not too within the protocol if immediately growing Bitcoin holdings is the one aim.

Nevertheless, versus buying and selling a government-regulated futures product that’s solely accessible when the normal markets are open, dYdX gives the decentralized, 24/7 buying and selling setting that the crypto devoted have grown to like.

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The views and opinions expressed listed below are solely these of the writer and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer includes threat, it is best to conduct your individual analysis when making a choice.