Botanix has launched a new yield-bearing Bitcoin product called stBTC, designed to enable users to earn native yields directly on their Bitcoin holdings. The platform operates as an Ethereum Virtual Machine (EVM) compatible Bitcoin sidechain, and stBTC allows users to stake their Bitcoin to earn returns generated from the transaction fees associated with the network.
The yield system for stBTC is set to activate on September 18, with anticipated annual percentage yields (APY) reaching as high as 30%. This initiative will be introduced alongside the liquid staking Genesis Vault, which will serve as a first-come-first-served Bitcoin deposit vault scheduled to open on September 25. The vault will have a cap to incentivize early participation, thereby enhancing the yield for those who join the Botanix platform early.
According to Willem Schroe, the co-founder and CEO of Botanix Labs, the model behind stBTC ensures that users can earn more Bitcoin through network activity rather than speculative farming strategies. He emphasized that this sustainable and transparent yield mechanism allows for instant redemption of earned Bitcoin, making it a uniquely attractive option for investors.
Since its mainnet launch, Botanix has experienced gradual but steady growth in its total value locked (TVL), which currently stands at $13.8 million—marking a significant 91% increase from the beginning of September. This progress reflects growing confidence in the platform’s potential within the expanding Bitcoin decentralized finance (DeFi) ecosystem.
The introduction of stBTC aims to offer Bitcoin holders a means to generate returns while still enjoying full utility of their assets. Users can leverage stBTC for additional yield opportunities or as collateral in other supported protocols on Botanix. This innovation addresses a long-standing market demand for a way to earn Bitcoin on their Bitcoin holdings without the risks typically associated with third-party entities.
Dan Held, a General Partner at the digital investment firm Asymmetric, highlighted the groundbreaking nature of Botanix’s approach. He noted that the time has come for Bitcoin to earn Bitcoin seamlessly, positioning Botanix as a pioneer in the realm of Layer 2 solutions that convert transaction fees into a sustainable yield source. As interest in Bitcoin and DeFi continues to grow, Botanix’s launch of stBTC could play a significant role in shaping the future of Bitcoin investment.
