In an exciting development for Bitcoin enthusiasts, Botanix has launched its innovative yield-bearing Bitcoin standard known as stBTC. This introduction allows users to earn sustainable yields directly on their Bitcoin holdings, harnessing the power of the Botanix network.
Botanix, which operates as a Bitcoin sidechain compatible with the Ethereum Virtual Machine (EVM), allows users to stake their Bitcoin and benefit from transaction fees generated on the Botanix platform. These fees, denominated in Bitcoin, will produce native yields that users can redeem at any time. The yield rates are contingent upon the activity influx on the Botanix network, which aims to create a direct correlation between network usage and user reward.
The stBTC yield program will officially launch on September 18, with projections offering yields as high as 30% APY. This exciting feature is set to debut alongside the project’s liquid staking Genesis Vault, scheduled to open on September 25. This vault will be initially capped, allowing early adopters to maximize their returns, with a first-come, first-served mechanism that rewards those who act quickly.
Willem Schroe, the co-founder and CEO of Botanix Labs, emphasized the groundbreaking nature of stBTC, stating, “With stBTC, Bitcoin in means more Bitcoin out, earned directly from network usage rather than speculative farming. This model creates intrinsic yield that is sustainable, transparent, and instantly redeemable.” This new yield model empowers Bitcoin holders by providing them with a means to generate returns while maintaining full control and utility over their assets.
Since its mainnet launch, Botanix has demonstrated steady growth in total value locked (TVL), currently standing at $13.8 million—a remarkable 91% increase since the start of September. This growth is a testament to the increasing demand for innovative DeFi solutions within the Bitcoin ecosystem.
The introduction of native Bitcoin yield through stBTC aims to provide Bitcoin holders with a dual utility—generating income while keeping their assets fully operational within the growing DeFi sector. Users will have the flexibility to utilize stBTC in various yield-generating opportunities or as collateral for supported protocols within the Botanix platform.
Dan Held, General Partner at the digital investment firm Asymmetric, highlighted the significance of this launch, saying, “The idea of Bitcoin earning Bitcoin, without introducing third-party risk, is something the market has waited over a decade for. Botanix is one of the first L2s to introduce real, native Bitcoin yield and the first to repurpose transaction fees as a sustainable yield source.”
The launch of stBTC not only promises lucrative returns for investors but also illustrates a significant advancement in the realm of Bitcoin DeFi, enabling holders to reap benefits while actively using their assets. As the market awaits the activation of this innovative model, it is clear that Botanix is positioning itself as a major player in the intersection of Bitcoin and decentralized finance.
