BTCFi Ecosystem Rise Analysis: The Key to Asset Accumulation Strategy

As the most widely recognized cryptocurrency, BTC's on-chain liquidity is becoming the focus of attention for various ecosystems and protocols. With the rise of BTC scaling solutions and BTC LST, BTC is transforming from a static store of value into an asset that can participate in more on-chain yield scenarios, significantly enhancing its application potential within the DeFi ecosystem.

Core, BOB, and Corn are representative rise cases in the BTCFi field recently:

Core focuses on leveraging large-scale BTC LST assets during the growth period; Corn collaborates with Pendle to launch point derivative gameplay to quickly capture the incremental market; BOB attracts liquidity through rich ecology and liquidity pressure services. Various ecosystems have greatly activated the liquidity of BTC assets through a series of actions centered around "earning interest".

Current Status of the BTC Asset Market

Currently, centralized custody issued wrapped BTC still dominates with over 75% share. However, BTC LSTs represented by LBTC and SolvBTC.BBN have risen rapidly in recent months, becoming an emerging force, with a market size reaching 25.6K BTC.

The main application scenarios of BTC-pegged assets are concentrated in lending protocols. In addition to lending, the BTC LST has also become an important downstream application in the points trading market.

Asset Accumulation Strategy of the BTCFi Ecosystem

Core: Focus on the dual drivers of rising assets and token incentives

Core is a BTC-driven L1 scaling solution that provides robust returns through non-custodial staking. Currently, the TVL has reached $591.5M, with a six-month rise of 4757.9%.

rise strategy:

1. Focus on the BTC anchored asset rise market, attracting Solv derivative assets.
2. Build a native protocol and quickly integrate with the BTCFi project to establish a complete ecological application.
3. Utilize $CORE tokens to incentivize the support for ecosystem synergies.

The deep integration with Solv contributed 65% of the TVL for Core. The native lending protocol Colend and the leading BTC Restaking Pell Network are the main application scenarios. At the same time, the airdrop of the $CORE token and its market performance support the incentive structure.

Corn: The points derivative gameplay efficiently attracts BTC LST liquidity.

Corn is an emerging ETH L2 network that uses hybrid tokenized BTC as an economic incentive tool. Currently, the TVL of deposit activities has reached $425.8M.

rise strategy:

1. Leading BTC LST points derivative gameplay in collaboration with Pendle
2. TVL Bootstrap Campaign to attract initial liquidity

The Corn and the five major BTC LST pools launched by Pendle have absorbed 11.4% of the BTC LST market, becoming the main source of its TVL.

BOB: Secure bridging and strong ecosystem support asset aggregation

BOB is a hybrid Layer 2 network that combines the advantages of BTC and ETH. The current TVL is $65.7M, mainly from WBTC.

rise strategy:

1. Launch one-click liquidity staking service BOB Stake
2. Deep integration with multiple DeFi protocols to provide yield scenarios
3. Incentive Program BOB Fusion Attracts User Participation

BOB Stake integrates multiple LST protocols and DeFi platforms, becoming a convenient entry point for BTC staking and applications. Avalon, as the main lending protocol, has absorbed 35.6% of on-chain assets.

Summary

The key to effectively realizing the accumulation of ecological funds is:

1. Connect and incentivize large-scale incremental anchored assets
2. Forming composable yield strategies through diversified DeFi applications
3. Provide multiple incentive expectations

Currently, the TVL of BTC-backed assets on L2 and sidechains is about 1.6 billion USD, accounting for only 0.14% of the total market value of BTC. In the future, as BTC liquidity is released, there is still huge rise potential for the asset accumulation and application scenarios of the BTCFi ecosystem.