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Bankless: A Guide to Using Bitcoin DeFi

For the past few years, the center of DeFi’s activity has been Ethereum, but it has also expanded to the Ethereum Virtual Machine (EVM) chain such as BSC, Polygon, Arbitrum, optimistic, and more.

However, Bitcoin has its own native DeFi ecosystem, which, while much smaller than EVM-based DeFi, is steadily clustered at all layers of the network.

Therefore, this article will show you how a newbie can use Bitcoin DeFi.

* Goal: Learn how to navigate the Bitcoin DeFi ecosystem

* Skill requirement: Intermediate

* Effort required: several hours

* Return on investment: Dive into the new frontier of DeFi and earn up to 8% APY with STX staking.

Bitcoin DeFi, let’s get started!

Defi, back to Bitcoin

One day in 2017, I hit the “Random” button on Reddit and went to r/ethtrader to start my crypto journey.

As a result, I became part of a new wave of entry into the crypto world through Ethereum – not OG Bitcoin in the crypto economy.

I started writing crypto journalism, and I could say that I started out as a generalist and didn’t specialize in a particular field. In 2018, I exchanged my last Bitcoin for ETH, and I’ve turned my attention to Ethereum ever since.

I’ve also seen the rise of DeFi. I was an early user of Maker and lent DAI stablecoins with my ETH and have been making real-life money by doing so ever since.

This ability made me a big fan of DeFi early on, and it has led me to explore as many DeFi projects as possible in recent years, while the total lock-up value (TVL) of the ecosystem has reached an all-time high.

DeFi’s TVL peak as of date is $182 billion as of December 2, 2021 – originating from DeFiLlama

In this boom, we are also witnessing more and more innovation and diversification. You can earn trading fees with LPing on Uniswap, Curve and Balancer, borrow and borrow on Aave and Compound, trade derivatives on dYdX and Opyn, and so much more!

Decentralized finance is booming.

From Alt-L1 to Ethereum-centric L2, there has been a boom in other chains in the same wave.

In most cases, the largest of these new…

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