Stacks sees BTCFi as a colossal chance to transform Bitcoin into a profitable asset.

Bitcoin, the world’s first blockchain network, is set to become a more versatile asset with the introduction of decentralized finance (DeFi), according to Andre Serrano, product and partnership manager at Stacks. This new development, known as Bitcoin-native DeFi or BTCFi, aims to bring DeFi capabilities to the Bitcoin network. Serrano predicts that the market for Bitcoin layer-2 networks, which enable lower transaction costs and additional use cases, could surpass the market for Ethereum layer-2s. The recent success of decentralized exchange MerlinSwap, which raised 6,599 Bitcoin during its initial DEX offering, demonstrates the growing demand for BTCFi. Serrano highlights the importance of layer-2 networks for Bitcoin, stating that they are necessary to scale the network and enable the creation of smart contracts. He also emphasizes the need for yield-generating capabilities and lending protocols to make Bitcoin a more productive asset. Nash Lee, co-founder of MerlinSwap, shares this optimism and believes that BTCFi has the potential to match the innovation of Ethereum DeFi.