The solution is another way decentralized finance is gaining momentum
Liquid staking protocol pStAKE Finance has disclosed its staking solution for Bitcoin in the latest evolution of Bitcoin-based decentralized finance (DeFi).
pSTAKE Finance’s Binance Labs-backed solution, constructed using Babylon’s Bitcoin staking protocol, seeks to simplify the Bitcoin staking process and offer more earnings opportunities for Bitcoin investors.
According to Mikhil Pandey, chief strategy officer and co-founder of pSTAKE Finance, the protocol’s staking solutions are based on a basic trust in the world’s first cryptocurrency, seeking to make it a profit-generating asset.
“Having fundamental faith and belief in Bitcoin, yields, and constantly identifying and solving crucial problems in this industry are some of the reasons behind moving in Bitcoin’s direction. The opportunity to make Bitcoin a yield-generating asset, something that hasn’t existed inherently, is very exciting. Yield-generating Bitcoin is powerful for all ecosystems and not just Bitcoin L2s,” said Pandey in a statement to Cointelegraph.
The initiative is part of a broader movement known as Bitcoin DeFi (BTCFi), which aims to bring DeFi capabilities to the world’s first blockchain network.
Investments in Bitcoin-based DeFi solutions began rising after the 2024 Bitcoin halving, and a new protocol on the Bitcoin network called Bitcoin Runes was launched to allocate fungible tokens. pSTAKE’s liquid staking solution is its initial enterprise into Bitcoin-based DeFi after three years of developing a liquid staking protocol on Cosmos.
Pandey believes the BTCFi industry will introduce many more products to improve Bitcoin yield generation. However, he feels more growth is needed before BTCFi can compare to Ethereum-level DeFi. “With less than 1% of the Bitcoin market cap in DeFi today, we could see huge growth as we develop more secure and reliable ways to generate yield on Bitcoin,” declared Pandey.
