Challenges: Absence of Native Yield

Every Asset Deserves Native Yield

Native Yield acts as a powerful catalyst for ecosystem growth, attracting liquidity and fostering the development and interoperability of protocols. This dynamic creates a ripple effect, fostering increased trading activity and unlocking additional revenue streams within the ecosystem. As these revenues circulate back into the ecosystem, a virtuous cycle of growth is set in motion.

In the Ethereum (ETH) ecosystem, Native Yield has demonstrated its transformative potential. ETH staking has provided significant income opportunities for ETH holders, while liquid staking derivatives (LSDs) like Lido’s stETH have become a vital LEGO block in the DeFi ecosystem, achieving remarkable success.

However, other mainstream assets like BTC and USDT have lacked native yield options, limiting the growth of their respective ecosystems. Currently, the total value locked (TVL) in ETH protocols represents 15.4% of ETH’s total market cap, whereas the TVL in BTC protocols accounts for only 0.19% of BTC’s market cap. This indicates a significant untapped potential within the BTC market.