Liquid staking solution (LST) pSTAKE Finance is expanding its Bitcoin yield capabilities by bringing yBTC, pSTAKE-issued LST for Bitcoin on the BNB Chain as well as supporting BTCB deposits on it in the coming days.
With this move, pSTAKE is helping increase Bitcoin’s utility and make it even more attractive to both retail and institutional investors by offering them unique opportunities to earn a yield on BTC. Decentralized Finance on Bitcoin is already gaining significant attention, and pSTAKE’s Bitcoin Liquid Staking solution, which supports additional assets, will only help the world of BTCfi expand further.
This also marks a major development for the entire DeFi sector as it can unlock the massive $1.2 trillion sitting idle in BTC.
Unlocking Massive Yield Opportunities
pSTAKE Finance’s Bitcoin liquid staking product allows BTC holders to stake their Bitcoin and generate yield through innovative protocols like Babylon. By turning BTC into a slashable asset, Babylon utilizes BTC to add economic security to PoS chains and earn rewards for BTC holders.
This means Bitcoin is no longer just a passive store of value but rather an interest-bearing asset that allows HODLers to put their idle-sitting BTC to good use.
There has been a lot of demand for this functionality, as evident from the fact that in just three weeks of going live, pSTAKE Finance hit its 50 BTC cap, 20% of which it deposited into Babylon’s BTC Staking Cap 1. With that, BTC depositors have officially begun earning yields via Babylon Points and pSats, which are pSTAKE Points.
Now, BTCB holders will also have this opportunity to earn rewards and increase their BTC stash while contributing to the security of PoS chains. Meanwhile, by accepting BTCB deposits from users on the BNB Chain, pSTAKE will be able to tap into Binance’s wide user base and broaden Bitcoin yield accessibility.
Besides the ability to deposit directly onto pSTAKE Finance and earn rewards through Babylon, BTCB holders will also get to generate additional yield by using yBTC in DeFi protocols of BNB Chain. This includes PancakeSwap, Venus Protocol, BounceBit, Radiant Capital, ListaDAO, and more. The yield-generating nature of yBTC also makes it a pristine collateral asset for these protocols which can then offer additional yields to their users.
yBTC is pSTAKE’s upcoming Bitcoin liquid staking token that will be brought onto BNB Chain. So, that’s double the fun and earnings for BTCB holders. For BNB Chain meanwhile, this will lead to a bigger DeFi ecosystem and more capital, which will attract even more users.
Expanding the Utility of Bitcoin & BNB Chain
As BTC continues to become more integrated into DeFi, we are seeing a lot of innovation in the Bitcoin space in terms of L2s, yield generation, and tokenized versions like BTCB.
BTCB is a stablecoin with a market cap of about $4 billion, pegged to BTC price and supported by BTC reserves. This wrapped BTC variant basically bridges the gap between Bitcoin and the BNB Chain’s DeFi ecosystem, which has a $6.7 billion in TVL.
With this tokenized version of Bitcoin on the BNB Chain, BTC holders get access to the broad ecosystem of the BNB Chain, known for its low fees and fast transactions.
“BNB Chain’s mission is to bring Web3 to the next billion users, and we are excited to see pSTAKE expanding its Bitcoin liquid staking on Babylon to BTCB on BNB Chain. This expansion not only enhances DeFi opportunities for users but also brings us closer to our goal of making Web3 accessible,” said Gala Wen, Director of Ecosystem Development at BNB Chain.
Besides pSTAKE, BTCB is also supported by popular DeFi protocols like Aave and Solv, in addition to being widely adopted in BNB Chain DeFi.
Once BTCB support goes live and BNB Chain users can securely access staking yields on their BTCB tokens with just one click, it will make BTCB the second asset, after native BTC, to be supported by pSTAKE Finance’s Bitcoin Liquid Staking solution. By enabling BTCB to participate in liquid staking, pSTAKE Finance will increase the liquidity of BTCB and enhance the utility of BNB Chain.
As Bitcoin continues to become an active financial asset and DeFi participant, the progress of pSTAKE’s Bitcoin yield solution will further solidify the trillion-dollar asset class’s role as the true foundation of open, permissionless finance. This advancement will lead to its adoption in various financial applications and ecosystems, boosting overall industry confidence, growth, and maturity.
Source: https://www.cryptopolitan.com/pstake-finance-expands-bitcoin-yield-capabilities-with-btcb-support-on-bnb-chain/