Bitcoin Restaking a.k.a. BTCfi for dummies

DeFi is never short of cool new stuff. The latest fad is Bitcoin Restaking– an innovative way of taking your hard-earned (or hardly earned?) coins and squeezing a bit more profit from them.

Here's how it works in TLDR;

✦ Use your wBTC and mint a Liquid Staked BTC token. 
✦ Build your strategies on this Liquid Staked BTC while staking your wBTC, maximizing your BTC's value.
✦ Seamlessly engage with the DeFi ecosystem while maintaining your exposure to BTC.

Here's how it works in depth 🧵

1/4 What's a wBTC, LBTC, and other _BTCs

wBTC is an ERC-20-wrapped version of Bitcoin on the Ethereum network. 
It allows you to seamlessly trade and transfer your BTC for ETH or any other ERC-20 coin.

The other _BTCs are Liquid Staked Bitcoin variants of various protocols. Here are a few examples:

LBTC - Lombard Finance
eBTC - ether.fi
uniBTC -  Bedrock

wBTC and all of these variants are pegged to BTC price.

Generally, different protocols reward you in various ways for staking your wBTC with them. Some will give you points on their platform, while others will provide yield directly on your staked wBTC.

That's why we get so many _BTC tokens. 

It is your responsibility to DYOR before choosing the right one for you.

Sweet BTCfi strategy,
Boost your mothercoin profits with @pwndao and leveraging ether.fi’s eBTC 💵

TLDR;

✧ 6% (ish) fixed yield on your BTC with Pendle PTs
✧ Leverage or fund deals with fixed term and duration loans on PWN
✧ Stay liquid while your BTC works for you

Let's dive into it 👇🧵

2/4 BTC + DeFi = BTCfi

The sole purpose of BTC restaking is not the restaking itself, but the capital efficiency it unlocks.

Here's where we are now:

✅ You lock your wBTC and let it earn rewards or yield
🔳 You venture out with the Liquid Staked token

What you want to do now is to find a protocol that lets you use that LS BTC for whatever strategy you want to do next, these can be:

📌 provide liquidity
📌 taking out a loan
📌 whatever else you want

Here's one of the strategies using etherfi eBTC and Pendle PT eBTC I wrote a few days ago 👇

2/4 BTC + DeFi = BTCfi

The sole purpose of BTC restaking is not the restaking itself, but the capital efficiency it unlocks.

Here's where we are now:

✅ You lock your wBTC and let it earn rewards or yield
🔳 You venture out with the Liquid Staked token

What you want to do now is to find a protocol that lets you use that LS BTC for whatever strategy you want to do next, these can be:

📌 provide liquidity
📌 taking out a loan
📌 whatever else you want

Here's one of the strategies using etherfi eBTC and Pendle PT eBTC I wrote a few days ago 👇
https://warpcast.com/pwnintern/0xd7005af5

3/4 Your upside

The advantage is clear, but just to re-emphasize:

✅ You stake your BTC in exchange for extra yield or other rewards specific to the platform.
✅ You retain your BTC exposure. Very handy, especially when it's outperforming most of the market (now).
✅ You use the Liquid Staked BTC for maximal capital efficiency.

4/4 Upside for DeFi

We all want crypto to win, and BTCfi is one of the ways forward.

For a long time, we have been able to seamlessly transition between wBTC and other ERC-20 tokens.

Now we are taking another step forward. The BTCfi is moving us closer to a truly decentralized financial system with maximum cross-chain interoperability.

The future is now, old man. Crypto wins.

0/4 Please like me

First I'd kindly ask you to hit reply, repost, or give me a follow.

I'm a new intern trying to live my best life. 
For that, I need to keep growing *sip*🧃

Anyway let's get to it →