Bitcoin DeFi is rapidly evolving on the Sui network, expanding the utility of Bitcoin beyond its traditional role as a store of value. This trend, referred to as BTCfi, enables Bitcoin holders to access various decentralized finance applications, previously restricted to other blockchains like Ethereum and Solana. Sui supports multiple integrations, including Wrapped Bitcoin (WBTC) and Lombard Finance's LBTC, empowering users to engage in lending, trading, and staking activities. A standout feature is sBTC, a decentralized, Bitcoin-backed asset on the Stacks layer-2 network, allowing users to participate in DeFi while maintaining Bitcoin's trust-minimized principles. The integration with Stacks enables efficient interaction and potential yield generation without relying on centralized custodians. The ecosystem is growing, with more than 10% of Sui's total value locked comprising Bitcoin-related assets. Overall, Sui is positioning itself as a hub for innovative Bitcoin applications, bridging the gap between Bitcoin's security and the robust functionality of DeFi.

Source 🔗