Bifrost brings BTCUSD and native Bitcoin staking to Stacks Network with the launch of BTCFi

Exciting news for Bitcoin holders and DeFi enthusiasts! The Bifrost Foundation, known for its focus on Proof-of-Stake (PoS) staking in the DeFi space, has partnered with Stacks, a prominent Bitcoin Layer 2 (L2) network, to unlock fresh functionalities for Bitcoin and its associated assets.

Today, Bifrost announced a strategic collaboration with the Stacks Foundation aimed at increasing the utility and interoperability of Bitcoin-based assets and protocols, setting a new standard in the DeFi landscape. As part of the deal, The Stacks Foundation will provide technical guidance and support as the Bifrost team integrates various products from their ecosystem with Stacks.

This integration will introduce Bifrost’s suite of DeFi products to the Stacks ecosystem, including BTCUSD trading and Native Bitcoin Staking, thereby enabling users to trade a synthetic Bitcoin-dollar pair directly on Stacks.

As part of this collaboration, Bifrost will roll out a range of its products. This includes BTCfi, a platform designed to help Bitcoin holders earn Bitcoin with reduced risk. Moreover, BTCfi will back the sBTC asset once it’s launched. Additionally, there’s sBTC, which will serve as collateral, similar to WBTC and BTCB within BTCfi. Lastly, Bifrost will introduce its Bitcoin-backed stablecoin, BtcUSD, to the Stacks layer.

The introduction of Bifrost’s technology offers a solution to the liquidity issue associated with staking Bitcoin. Traditionally, staking Bitcoin involves locking it up, limiting its liquidity. Bifrost’s technology allows users to earn rewards on their Bitcoin holdings without compromising access.

“We are excited to be part of the future of Bitcoin as envisioned by the Stacks community, and for them to share the same vision in pushing the infrastructural limits of Bitcoin. We look forward to creating services that will benefit users of both ecosystems,” Dohyun Pak, the founder of the Bifrost Foundation said in a statement.

By tapping into Bifrost’s capabilities, Stacks stands to broaden its DeFi offerings, potentially attracting more Bitcoin holders interested in exploring the world of Decentralized Finance (DeFi). This collaboration represents a significant step towards expanding the functionality of Bitcoin and its connected applications, with more announcements expected in the near future.

At the heart of this partnership lies the Bifrost Foundation’s launch of BTCFi, a service pioneering the use of Bitcoin to mint BtcUSD, a stablecoin backed by Bitcoin. This innovation provides Bitcoin holders with a secure and decentralized way to leverage their assets, offering them an opportunity to earn rewards with minimized risk.

Additionally, Pockie, a popular wallet overseen by the Bifrost Foundation, will extend its support to sBTC upon its launch, further solidifying the collaboration between the two networks. The Stacks network anticipates an upgrade this year that will enable sBTC—a non-custodial, programmable 1:1 Bitcoin-backed asset.

The imminent upgrade of the Stacks network, set to enable sBTC—a non-custodial, programmable 1:1 Bitcoin-backed asset—heralds a new era of decentralized movement of BTC across blockchain layers. With sBTC, builders can unleash the potential of Bitcoin, unlocking $1 trillion in BTC capital and revolutionizing its utility across diverse ecosystems.

“At the Stacks Foundation, our commitment lies in fostering innovation and utility within the Bitcoin ecosystem,” says Mitchell Cuevas, Executive Director at the Stacks Foundation. “As innovation on Bitcoin continues to blossom, we’re honored to be able to offer guidance to teams like Biforst as they explore bringing new technology and integrations to the Stacks layer. With BTCfi and BtcUSD, we’re excited to see the options users have on the Stacks layer grow and look at this as another step toward interoperability across a growing number of Bitcoin-focused protocols and networks.”

How you can use BTCfi and BtcUSD

As users eagerly await the rollout of sBTC, they can already capitalize on the opportunities presented by BTCFi and BtcUSD. With a simple deposit of BTC, users interested in using BTCFi and BtcUSD can mint BtcUSD at an attractive rate of 3.5% APY, unlocking a world of DeFi possibilities within the Stacks ecosystem and beyond.

With Bifrost’s cross-chain capabilities, the use cases for BtcUSD are poised to expand over time, offering users unprecedented flexibility and access to decentralized finance. As sBTC integration becomes a reality, BTCFi will further enhance its offerings, empowering users to leverage sBTC as collateral and tap into a wealth of DeFi opportunities.