Key Points:
– A new Bitcoin-backed synthetic dollar called USDh will be launched soon with a potential yield of 25%, sourced from Bitcoin futures funding rates.
– Stacks, a Bitcoin layer-2 network, reached an all-time high of 122,497 active accounts in April, indicating increased interest in Bitcoin DeFi.
– Zircuit Staking surpassed $3 billion in TVL after a 65% MoM growth, offering users the ability to stake ETH, LSTs, and LRTs to earn Zircuit Points.
– The growth of Zirkut was driven by collaborations with Ether.fi and EigenLayer, ahead of the mainnet launch.
– Alternative yield-generating strategies like restaking, liquid restaking, and BTCfi protocols are expected to maintain momentum in a weak crypto market.
– BTCFi, restaking, and liquid restaking protocols are emerging as alternative sources of yield in the DeFi sector.
– Merlin Chain saw significant growth with a TVL exceeding $1 billion, driven by the introduction of SolvBTC and a rewarding incentive scheme.
– SolvBTC operates across multiple chains and offers a yield between 5 and 10% derived from various strategies and assets.
– Liquid restaking protocols are gaining popularity, with a combined TVL of over $11 billion as of May 20th, enabling users to earn additional rewards by staking their assets multiple times on different chains.
– Staking on the Ethereum base chain offers APY of 2-7%, which can be further increased through liquid restaking protocols.
Overall, the DeFi sector is witnessing growth in alternative yield-generating strategies like restaking, liquid restaking, and BTCfi protocols, which offer competitive yields even in weak market conditions. Bitcoin-backed USDh and Zircuit Staking are set to bring innovation and opportunities to the DeFi space, while Merlin Chain and SolvBTC are leading the way in providing attractive yield options for users across multiple chains. Liquid restaking protocols are also gaining traction, offering users the ability to stake assets multiple times on different chains for increased rewards. As the DeFi sector continues to evolve, these innovative strategies are expected to play a significant role in shaping the future of decentralized finance.