{"id":"btcfi","version":1,"language":"en","title":"BTCFI","hidden":false,"content":"**BTCFi** is a [decentralized finance (DeFi)](https://iq.wiki/wiki/defi) platform allowing [Bitcoin](https://iq.wiki/wiki/bitcoin-btc) holders to borrow, lend, and generate yields while maintaining their [BTC](https://iq.wiki/wiki/bitcoin-btc) holdings. It aims to provide revenue opportunities for [BTC](https://iq.wiki/wiki/bitcoin-btc) holders across various networks by enabling [DeFi](https://iq.wiki/wiki/defi) functionalities for Bitcoin.[\\[1\\]](#cite-id-6sqklcsdpe)[\\[2\\]](#cite-id-z934ypj5zo)[\\[3\\]](#cite-id-w5ivlrc0i2k)   \n$$widget0 [YOUTUBE@VID](5SyjXQ6idMo)$$  \n  \n# Overview  \n  \nBTCFi, introduced by Bifrost, launched a native [Bitcoin](https://iq.wiki/wiki/bitcoin-btc) staking service on April 17, 2024, following the unveiling of its testnet on April 11, 2024, and a pre-launch event on March 14, 2024. BTCFi operates on a decentralized protocol without intermediaries or custodians, anchored by BtcUSD, an over-collateralized stablecoin backed by [Bitcoin](https://iq.wiki/wiki/bitcoin-btc).  \n  \nBTCFi aims to enable [Bitcoin](https://iq.wiki/wiki/bitcoin-btc) holders to potentially earn passive income while retaining their [BTC](https://iq.wiki/wiki/bitcoin-btc) holdings. By collateralizing [Bitcoin](https://iq.wiki/wiki/bitcoin-btc) to mint BtcUSD, users gain access to [DeFi](https://iq.wiki/wiki/defi) opportunities. Offering decentralization, user-friendliness, and cross-chain capabilities, BTCFi seeks to simplify borrowing and lending processes for [BTC](https://iq.wiki/wiki/bitcoin-btc) holders.  \n  \nUsers can deposit [BTC](https://iq.wiki/wiki/bitcoin-btc) from various chains and potentially utilize BtcUSD in protocols across the Bifrost Network and other compatible platforms. With [BTC](https://iq.wiki/wiki/bitcoin-btc) as collateral, BtcUSD aims to maintain the decentralization inherent in [Bitcoin](https://iq.wiki/wiki/bitcoin), potentially ensuring stability and accessibility.  \n  \nMoreover, BTCFi's integration with Bifrost seeks to provide full cross-chain functionality, enabling collateral and assets to potentially be utilized across different networks. Future plans include native [BTC](https://iq.wiki/wiki/bitcoin-btc) support, potentially enhancing BTCFi's cross-chain capabilities.[\\[1\\]](#cite-id-6sqklcsdpe)[\\[2\\]](#cite-id-z934ypj5zo)[\\[3\\]](#cite-id-w5ivlrc0i2k)[\\[4\\]](#cite-id-md7n02p0o4)[\\[5\\]](#cite-id-lt76ytzgcqd)[\\[6\\]](#cite-id-yz8srgz76gt)[\\[7\\]](#cite-id-rk5vxkceh5)  \n![1*2OQv31CcXxw98sECBgKepg.webp](https://ipfs.everipedia.org/ipfs/QmfFh12MBxeFJEJfwChugECih8styJ1Z6zbaQE8Q9n5aDa)  \n  \n## Decentralization  \n  \nBTCFi, operating on the Bifrost Network, endeavors to uphold principles of decentralization and security. It strives to be among the pioneering fully decentralized collateralized debt positions (CDPs), utilizing [Bitcoin](https://iq.wiki/wiki/bitcoin-btc) as exclusive collateral, thus eliminating reliance on centralized intermediaries.  \n  \nThis approach aims to safeguard users' assets and minted BtcUSD from associated risks. By using [Bitcoin](https://iq.wiki/wiki/bitcoin-btc) as collateral, BTCFi aims to ensure that BtcUSD maintains [Bitcoin's](https://iq.wiki/wiki/bitcoin-btc) level of decentralization, providing stability in a [stablecoin](https://iq.wiki/wiki/stablecoin) format.[\\[3\\]](#cite-id-w5ivlrc0i2k)[\\[8\\]](#cite-id-e68up2nwy9k)  \n  \n## User-Friendliness  \n  \nBTCFi aims to streamline borrowing and lending for [BTC](https://iq.wiki/wiki/bitcoin-btc) holders by facilitating collateralization and minting of BtcUSD. Users have the option to integrate [BTC](https://iq.wiki/wiki/bitcoin-btc) from various networks, reducing transaction costs.  \n  \nIt offers competitive borrowing rates, providing stable BtcUSD loans at 3.5%, aiming to appeal to investors seeking to leverage [BTC](https://iq.wiki/wiki/bitcoin-btc) without risk.  \n  \nWith a focus on speed and efficiency, BTCFi enables quick staking of [Bitcoin](https://iq.wiki/wiki/bitcoin-btc). Leveraging the high transactional rate of the Bifrost Network, it seeks to ensure faster execution compared to competitors. Its self-custodial nature grants users complete control over their [BTC](https://iq.wiki/wiki/bitcoin-btc) holdings, fostering trust and security.[\\[3\\]](#cite-id-w5ivlrc0i2k)[\\[5\\]](#cite-id-lt76ytzgcqd)[\\[9\\]](#cite-id-7cg6xm9pjdh)  \n  \n## Cross-Chain  \n  \nBTCFi, powered by Bifrost, aims to provide robust cross-chain capabilities, allowing collateral and assets to be used across various networks. Plans to support native [BTC](https://iq.wiki/wiki/bitcoin-btc) in the near future are intended to further establish BTCFi as a genuine cross-chain platform.  \n  \nIntegration with other [blockchain](https://iq.wiki/wiki/blockchain) networks expands BTCFi's utility, enabling users to link BtcUSD tokens to external platforms. This empowers [Bitcoin](https://iq.wiki/wiki/bitcoin) holders to seamlessly participate in diverse [DeFi](https://iq.wiki/wiki/defi) applications and services beyond the Bifrost ecosystem.[\\[3\\]](#cite-id-w5ivlrc0i2k)[\\[5\\]](#cite-id-lt76ytzgcqd)[\\[10\\]](#cite-id-bnnhxpq1t55)  \n![1*CqlF00AfGbHYFGoMwZCfNw.webp](https://ipfs.everipedia.org/ipfs/QmYNLiigeBfwjurcDrFGRs2M4kXSs1Ky5cb8RF3AqPqkPn)  \n  \n# Use Cases  \n  \nBTCFi provides various opportunities for [BTC](https://iq.wiki/wiki/bitcoin-btc) holders to potentially generate profits. Users can aim to utilize Bifrost's [decentralized applications](https://iq.wiki/wiki/decentralized-application) like BiFi and Everdex to lend BtcUSD or deposit it into stable pools, with the intention of minimizing risks. BtcUSD can also be employed in other supporting [DApps](https://iq.wiki/wiki/decentralized-application) such as [ALEX](https://iq.wiki/wiki/alex) on [Stacks](https://iq.wiki/wiki/stacks).  \n  \nAdditionally, users can aim to invest in other [cryptocurrencies](https://iq.wiki/wiki/cryptocurrency) through BtcUSD, holding multiple assets simultaneously to potentially benefit from their upsides.  \n  \nLeveraging Bifrost's cross-chain engine, BTCFi aims to enable access to [DApps](https://iq.wiki/wiki/decentralized-application) across various platforms like [Ethereum](https://iq.wiki/wiki/ethereum), [Stacks](https://iq.wiki/wiki/stacks), [BNB Chain](https://iq.wiki/wiki/binance-smart-chain), and [Arbitrum](https://iq.wiki/wiki/arbitrum).[\\[3\\]](#cite-id-w5ivlrc0i2k)  \n![1*sN3dHN8S4NFJz-7ntf6g2w.png](https://ipfs.everipedia.org/ipfs/Qmf1L3eth9W2bimkdGShtUPPsuQ7J4ZBRzT67jCC634sEy)  \n  \n# Tokenomics  \n  \n## BtcUSD  \n  \nBtcUSD is a [stablecoin](https://iq.wiki/wiki/stablecoin) backed by [Bitcoin](https://iq.wiki/wiki/bitcoin-btc) collateral, maintaining a 1:1 peg to the US dollar, facilitating versatile use within the [DeFi](https://iq.wiki/wiki/defi) ecosystem. Its reliance on [Bitcoin](https://iq.wiki/wiki/bitcoin-btc) allows users to potentially hold BtcUSD long-term for stable earnings.  \n  \nUnlike other [cryptocurrency](https://iq.wiki/wiki/cryptocurrency)-backed [stablecoins](https://iq.wiki/wiki/stablecoin), BtcUSD aims to be solely backed by [Bitcoin](https://iq.wiki/wiki/bitcoin-btc), aiming to reduce liquidation risk and ensure stability against the US dollar more effectively. Its decentralization is intended to provide security against censorship and manipulation.  \n  \nBtcUSD's resilience, secured by [Bitcoin's](https://iq.wiki/wiki/bitcoin-btc) substantial [Total Value Locked (TVL)](https://iq.wiki/wiki/tvl), is positioned as a decentralized [stablecoin](https://iq.wiki/wiki/stablecoin). Powered by Bifrost's cross-chain capabilities, BtcUSD aims to be the first [Bitcoin](https://iq.wiki/wiki/bitcoin-btc)-based [stablecoin](https://iq.wiki/wiki/stablecoin) fully cross-chain capable, potentially enabling users to mint it on various networks through BTCFi.[\\[11\\]](#cite-id-lwjuzugc49j)[\\[12\\]](#cite-id-hni4j4bx7z)  \n  \n### Utility  \n  \nBtcUSD aims to simplify by collateralizing [BTC](https://iq.wiki/wiki/bitcoin-btc) to mint BtcUSD for use across various [DeFi](https://iq.wiki/wiki/defi) platforms like Everdex and BiFi, offering a low-interest loan option without selling [BTC](https://iq.wiki/wiki/bitcoin-btc).  \n  \nIts utility aims to extend across multiple networks through Bifrost Network, including services like [Aave](https://iq.wiki/wiki/aave), [Compound](https://iq.wiki/wiki/compound), [MakerDAO](https://iq.wiki/wiki/makerdao), and [Bitcoin's](https://iq.wiki/wiki/bitcoin)[ Layer 2](https://iq.wiki/wiki/layer-2) solutions, aiming to broaden accessibility.  \n  \nNotably, BtcUSD enables leveraging positions: [BTC](https://iq.wiki/wiki/bitcoin-btc) holders can aim to take low-interest loans against their [BTC](https://iq.wiki/wiki/bitcoin-btc), mint BtcUSD, and further invest in [BTC](https://iq.wiki/wiki/bitcoin-btc) or provide liquidity in [DeFi](https://iq.wiki/wiki/defi), aiming to enhance [Bitcoin's](https://iq.wiki/wiki/bitcoin) yield potential.[\\[13\\]](#cite-id-ztzko7tgg3m)","summary":"BTCFi is a decentralized finance platform that allows Bitcoin holders to borrow, lend, and generate passive income without relinquishing their Bitcoin holdings.","categories":[{"id":"defi","title":"Decentralized Finance"}],"promoted":0,"tags":[{"id":"Organizations"}],"metadata":[{"id":"references","value":"[{\"id\":\"6sqklcsdpe\",\"url\":\"https://docs.bifrostnetwork.com/eng.btcfi.one\",\"description\":\"docs - About BTCFI\",\"timestamp\":1715493726713},{\"id\":\"z934ypj5zo\",\"url\":\"https://www.btcfi.one\",\"description\":\"BTCFI homepage\",\"timestamp\":1715493740338},{\"id\":\"w5ivlrc0i2k\",\"url\":\"https://medium.com/bifrost/btcfi-launched-482c563bf6fa\",\"description\":\"medium - launch of BTCFI\",\"timestamp\":1715493758706},{\"id\":\"md7n02p0o4\",\"url\":\"https://medium.com/bifrost/btcfi-testnet-live-4229f882cbbb\",\"description\":\"medium - testnet live\",\"timestamp\":1715495278285},{\"id\":\"lt76ytzgcqd\",\"url\":\"https://medium.com/bifrost/btcfi-1-introducing-the-next-chapter-in-bitcoin-4dd5472a83bd\",\"description\":\"medium - btcfi introducing the next chapter in bitcoin\",\"timestamp\":1715495311119},{\"id\":\"yz8srgz76gt\",\"url\":\"https://bifrostnetwork.com/about\",\"description\":\"bifrost homepage\",\"timestamp\":1715495520034},{\"id\":\"rk5vxkceh5\",\"url\":\"https://www.binance.com/en/square/post/2024-02-06-bifrost-btcfi-3744724123378\",\"description\":\"binance - bifrost plans to launch BTCFI\",\"timestamp\":1715495539657},{\"id\":\"e68up2nwy9k\",\"url\":\"https://docs.bifrostnetwork.com/eng.btcfi.one#complete-decentralization\",\"description\":\"docs - Decentralization\",\"timestamp\":1715495662488},{\"id\":\"7cg6xm9pjdh\",\"url\":\"https://docs.bifrostnetwork.com/eng.btcfi.one#user-friendliness\",\"description\":\"docs - User-Friendliness\",\"timestamp\":1715496225677},{\"id\":\"bnnhxpq1t55\",\"url\":\"https://docs.bifrostnetwork.com/eng.btcfi.one#powerful-crosschain-capabilities\",\"description\":\"docs - cross chain \",\"timestamp\":1715496691992},{\"id\":\"lwjuzugc49j\",\"url\":\"https://docs.bifrostnetwork.com/eng.btcfi.one/faq/frequently-asked-questions\",\"description\":\"docs - frequently asked questions\",\"timestamp\":1715523667006},{\"id\":\"hni4j4bx7z\",\"url\":\"https://bifrost.medium.com/btcfi-2-what-is-btcusd-6d761be0cbbe\",\"description\":\"medium - what is btcusd\",\"timestamp\":1715523680555},{\"id\":\"ztzko7tgg3m\",\"url\":\"https://medium.com/bifrost/btcfi-3-the-limitless-possibilities-of-btcusd-a072e817150a\",\"description\":\"medium - possibilities of btcUSD\",\"timestamp\":1715524427173}]"},{"id":"website","value":"https://www.btcfi.one"},{"id":"previous_cid","value":"QmQEXLa9ikoMDta2kJvaMPkhnj4BmQmezpgLTc6Pwf4SBU"}],"user":{"id":"0xf32ECD5c8f5633212f1a25A3931aDDc0CEc42938"},"author":{"id":"0xf32ECD5c8f5633212f1a25A3931aDDc0CEc42938","profile":null},"media":[{"name":"5SyjXQ6idMo","id":"https://www.youtube.com/watch?v=5SyjXQ6idMo","size":"0","type":null,"source":"YOUTUBE"},{"name":"1*2OQv31CcXxw98sECBgKepg.webp","id":"QmfFh12MBxeFJEJfwChugECih8styJ1Z6zbaQE8Q9n5aDa","size":"0.02","type":"GALLERY","source":"IPFS_IMG"},{"name":"1*sN3dHN8S4NFJz-7ntf6g2w.png","id":"Qmf1L3eth9W2bimkdGShtUPPsuQ7J4ZBRzT67jCC634sEy","size":"1.14","type":"GALLERY","source":"IPFS_IMG"},{"name":"1*CqlF00AfGbHYFGoMwZCfNw.webp","id":"QmYNLiigeBfwjurcDrFGRs2M4kXSs1Ky5cb8RF3AqPqkPn","size":"0.10","type":"GALLERY","source":"IPFS_IMG"}],"views":12,"events":[],"linkedWikis":{"founders":[],"blockchains":[]},"ipfs":"QmQEXLa9ikoMDta2kJvaMPkhnj4BmQmezpgLTc6Pwf4SBU","transactionHash":"0x7553fc4dce6015c3dfd780dd2b2dc0f508693b35c698321c5dd7a165ce89fcc8","created":"2024-05-12T14:48:42.224Z","updated":"2024-05-13T13:55:30.154Z","images":[{"id":"QmPsxbibuXjj42Zc11k5WSDUzRKb3FGugfqLMwnNGjkBnq","type":"image/jpeg, image/png"}]}