DeFi on Bitcoin
What is the Projected Demand for Decentralized Finance (DeFi) on the Bitcoin Network?
Let's delve into Bitcoin dominance, which refers to the proportion of the total market cap that Bitcoin occupies.
Notably, Bitcoin dominance dropped from 70% to 40% from 2020 to 2021
Why Did This Happen?
As the attraction toward DeFi and scaling possibilities grew with the introduction of various altcoins and alternative blockchain solutions, Bitcoin's dominance saw a decline. However, what if these smart contract functionalities and scaling solutions could be seamlessly incorporated into the most secure and trusted digital asset and network, #Bitcoin?
Enter Bitcoin L2 Stacks
Bitcoin's static nature limits its utility. Layer2 holds the promise of fully expressive smart contracts and decentralized pegs which enables seamless movement of Bitcoin from Layer1 to Layer2 without custodians.
With the trustless peg mechanism, #BTC can be pegged to a BTC-pegged asset called #sBTC on Bitcoin L2. This sBTC is issued on the #Stacks layer and is 1:1 pegged to BTC on the main Bitcoin chain. Smart contracts can then utilize sBTC for executing transactions, enabling faster and cheaper transactions compared to the Bitcoin base layer while enabling trustless writing to the Bitcoin blockchain.
For the past few years, developers have been laser focussed and persistently building on Bitcoin Layer2. Significantly, Bitcoin dominance began to rise in 2023, swiftly climbing from 40% to 54%. Bitcoin Layer2, STX, has experienced a remarkable appreciation of over 900%. As adoption expands, value will transition from Layer1 to Layer2, amplifying the demand for DeFi. This will in turn accelerate the necessity for innovative DeFi solutions.
Enter BlockCity
A groundbreaking decentralized protocol built on Bitcoin Layer2 that unlocks the potential for sustained wealth by providing opportunities for passive income related to Ordinals, NFT, BNS domains and more...
Innovation is returning to Bitcoin, and BlockCity will be at the forefront of this evolution where digital assets like Ordinals or NFT are anchored to Bitcoin L1, seamlessly integrated with a decentralized pool on Bitcoin L2. This innovation bestows extraordinary powers upon your digital assets. Fundamentally, we've transformed the declining extrinsic value of digital assets into a decentralized, self-appreciating intrinsic value (IV), governed by Bitcoin Layer1.
This enables innovative use-cases. Let's dive into a few exciting ones:
HODL
Hold onto your #Ordinals #NFT securely in a non-custodial wallet to earn yields in Bitcoin Layer1. Each digital asset comes with its own decentralized flow of passive income.
Compound
Compound your yields to grow exponentially in a trustless manner, all tax-efficiently.
Lend
Tap into the potential of your idle Bitcoin by lending it to a secure decentralized pool on Bitcoin Layer 2, earning yields that not only compensate you in Layer 1 Bitcoin but also have the potential to compound over time.
Borrow
Lastly, our innovative design empowers digital assets with a steady borrowing capability governed by Bitcoin Layer1. Obtain an instant loan at 0% interest using your digital asset. Opting for yield compounding enhances your borrowing potential.
We've elevated this design even further. As Bitcoin's value surges, so does your borrowing power. Welcome to the future!
Join us as we build BlockCity – a groundbreaking decentralized layer of the internet for passive income poised to bring unparalleled value to Bitcoin DeFi.