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Jakarta, Pintu News – Starknet (STRK), Ethereum’s layer-2 (L2) network, just launched its Bitcoin (BTC) staking feature on Tuesday. The move allows users to place their Bitcoin (BTC) directly into the network and get rewarded.
This initiative not only integrates Bitcoin (BTC) into Starknet’s security model but also opens up new opportunities for Bitcoin (BTC) holders to earn proceeds from their digital assets.
Previously, Bitcoin (BTC) was often thought of as digital gold; valuable yet dormant in the decentralized finance (DeFi) landscape. However, with this latest move, Starknet seeks to change that paradigm.
According to Eli Ben-Sasson, CEO of StarkWare, since the 2024 announcement, it has been clear that Bitcoin (BTC) will scale through zero-knowledge technology. With this integration, Bitcoin (BTC) can now serve as more than just a store of value.
This paves the way for Bitcoin (BTC) to become a yielding asset in the DeFi ecosystem. Users can now enjoy the benefits of various DeFi activities by using their Bitcoin (BTC), which was previously not possible.
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To encourage the adoption of BTCFi, Starknet has announced an incentive program worth 100 million STRK. The program aims to increase BTC wrapper liquidity on decentralized exchanges (DEXs), lending markets, and stablecoin lending by using Bitcoin (BTC) as collateral.
The initiative, named “BTCFi Season,” is expected to lower borrowing costs and improve access to capital. In addition, Re7 Labs, which manages over $1 billion in assets, has joined as a key contributor.
Re7 Labs introduced an institutional Bitcoin yield fund accessible to retail users through MidasRWA, a tokenized version on Starknet. Re7 also launched a new trading system on Ekubo, which facilitates more efficient money movement between Bitcoin (BTC), Ethereum (ETH), STRK, and stablecoins.
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Starknet also expanded the ease of access to their Bitcoin (BTC) ecosystem. The network is now compatible with tools such as the Xverse wallet, Hyperlane, and Bitcoin bridges from Atomiq Labs and Garden Finance.
New partnerships with LayerZero, BitGo, and Stargate Finance will expand access further, allowing large institutions and casual users to easily join the Starknet Bitcoin (BTC) network.
With this update, Starknet not only enhances Bitcoin’s (BTC) functionality as a yielding asset in DeFi but also strengthens its position as a major player in the decentralized finance ecosystem. Following this announcement, Starknet’s native token, STRK, saw an increase of almost 8% and is trading at $0.13.
The launch of BTCFi by Starknet marks a new chapter in the evolution of Bitcoin (BTC) from a mere store of value to an actively generating asset in DeFi. With various initiatives and partnerships being launched, the future of Bitcoin (BTC) in DeFi looks increasingly bright and productive.
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