BTC in DeFi can grow to $100b+
I think @babylonlabs_io will be one of the protocols that help it get to that size.
BTCfi is something I've been studying a lot this year. The way I think about it is essentially the rental (yield) market on top of real estate (Bitcoin). Babylon is in the top 10 for TVL, perhaps somewhat overlooked with the other major DeFi players in this list.
One of the important things here that I think even I myself look over at times, is using BTC natively. No wrappers and no bridges. Add these BTC vaults on top of DeFi's core apps for composability and I think you get something really cool.
Just like we've seen the growth of something like $USDE from @ethena_labs via @pendle_fi + @aave markets, I think we can see $BTC (in it's perhaps Babylon staked form) integrate into many of the top 10 DeFi apps today - whether that's @aave, @MorphoLabs or @eulerfinance + others.
I think if a 1:1 mint & burn bridge like we have with USDC/USDT0 comes out or 0 slippage LZ integrations, then we have one of the strongest BTC products around.
What is good yield on BTC? 5-10% range would be incredible imo and I think it's possible, perhaps not by restaking alone but a combination of unique DeFi products. Good to see @babylonlabs_io going hard on this - maybe time for us to cook!

Big things are happening at Babylon!
After activating $10B in Bitcoin through our flagship Trustless Bitcoin Staking Protocol, Babylon is now entering its next phase, unlocking Bitcoin liquidity for DeFi, trustlessly and non-custodially, following the proven multichain strategies of Chainlink and Tether.
Let's deep dive into what this means and what's next for Babylon 👇
4.07K
16
The content on this page is provided by third parties. Unless otherwise stated, OKX is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.