A comprehensive guide to generating yield with BTC. Learn how to safely engage in DeFi while maintaining the core principles of Bitcoin's security and decentralization.
Introduction
Bitcoin is the pioneer of peer-to-peer cash systems and a trailblazer in the digital asset space. With a market capitalization of over $1.2 trillion, its value is primarily driven by its decentralized characteristics and user self-custody capabilities. However, Bitcoin still faces two significant challenges: seamless integration with DeFi protocols and the lack of native Layer 1 DeFi functionality.
Enter iBTC, a groundbreaking solution bridging these gaps. By leveraging Decentralized Log Contracts (DLC), iBTC offers one of the safest ways to connect Bitcoin liquidity to the thriving DeFi ecosystem. This innovative approach allows institutional users to mint, burn, and self-custody iBTC, using Chainlink's Proof of Reserve (PoR) to verify the 1:1 backing of BTC to iBTC.
This series aims to unlock the true potential unique to Bitcoin, guiding you through the process of generating yield without compromising security. We will explore how iBTC enables participation in the dynamic world of decentralized finance (DeFi) while keeping the Bitcoin network robustly secure. Join us on a journey to transform dormant digital gold into a productive, yield-generating asset.
Why use iBTC to utilize your Bitcoin?
Security: iBTC is protected by the reserve proof of Chainlink on Bitcoin's Layer 1 blockchain, ensuring strong 1:1 backing.
Cross-chain compatibility: Currently integrated with Ethereum, Arbitrum, and Base networks, with plans for further expansion.
Yield generation: Access established and verified DeFi protocols, avoiding risks associated with new chains and untested applications.
Series Overview
This comprehensive guide is a dynamic document, continuously updated to showcase new use cases and yield pathways for iBTC. It aims to be a core, detailed resource for exploring all available yield generation opportunities.
This guide is divided into four foundational levels, each building on the last, to help you master the art of Bitcoin yield generation:
Level 1: Genesis - Acquire iBTC
