Fronting this with saying: I’m still learning so please correct me if I’m wrong…
From what I can see there are no, or limited, options to do DeFi with Bitcoin. Currently you have to wrap your BTC to use on another network.
But, if a project could create DeFi onto Bitcoin, would that become a more superior network (vs Ethereum, Solana, etc) due to it’s security?
One of the biggest advantages of Bitcoin is it’s security so wouldn’t the combination of Bitcoin & DeFi on the same platform be the kind of ultimate platform for DeFi?
Or are there other concerns I’m missing as to why it would not be a good thing?
13 thoughts on “Bitcoin over Ethereum for DeFi?”
The issue with this idea is that the infrastructure for Bitcoin doesn’t allow for the writing and deployment of smart contracts, which are of courser required for DeFi.
There are protocols I believe that have been trying to introduce Bitcoin DeFi, but I understand that this requires trusting the security of the protocol deploying these smart contracts and thus defeats this advantage that Bitcoin has over Ethereum when it comes to protocol security, since you need to trust a third party app.
Bitcoin is good as trustless money with simple exchange. Ethereum is good as a smart contract platform with the potential for complex mechanisms. If you want something more sophisticated than “send A amount to B user” then Ethereum is the tool to use because it’s designed for that use case, whereas Bitcoin is not.
Feel like wrapping BTC then using that on a smart contract platform is as good as you’re going to get. Since the BTC network and protocol itself doesn’t support smart contracts, and there seems to be no interest in implementing smart contract functionality on layer 1, then the only option for BTC DeFi is to have a separate network with it’s own tokenized version of BTC. Though I’m also not really sold on the idea that proof of stake, as a concept itself, is any less secure than proof of work.
All I know is eth usdc pools are a plenty. But rarely any btc usdc ones.
Rsk(rootstock) is a layer 2 for btc. Noones talking about this because BtC iS AnCiEnT tEcH. It’s an evm on btc, so you pay gas, but with sats. There is MoC and Sov are two cool projects to look into. There is Defi on btc native, you just gotta look harder.
Is this even possible without smart contracts?
> But, if a project could create DeFi onto Bitcoin, would that become amore superior network (vs Ethereum, Solana, etc) due to it’s security]
No. No user wants to wait 10 minutes for a block confirmation time if they can wait 10 seconds.
Also you do not want to have maximum security for any price, you want to have enough security for good price. Bitcoin security is just too expensive. Otherwise people would use it more.
Smart contracts are the backbone of DeFi and can’t exist without them. I think BTC can only offer a trustless decentralized money which you can self custody.
Ethereum is better for DeFi when it comes to building decentralized applications based on smart contracts. Bitcoin is quite difficult and time consuming.
Ethereum is still the best option for DeFi since bitcoin doesn’t directly allow smart contracts. The only way to go DeFi with bitcoin is wrapping to another another. I pool wbtc/sylo pair currently, that’s the closest I’ve been to bitcoin DeFi.