2026-01-11 19:29:18

Bitcoin's economic layer is now live. A novel DeFi protocol currently operating enables users to lock BTC and mint MUSD on a 1:1 USD basis. The borrowing mechanism stands out—fixed 1% APY up to 90% LTV, dramatically undercut compared to Ethereum's 20%+ rates.

What makes this compelling? Liquidity provisioning on major DEX platforms like Uniswap v4 and Curve generates 30%+ APY returns. This creates a genuine earn-while-you-spend dynamic: participants lock Bitcoin, access stablecoin liquidity, deploy capital across yield opportunities, and their collateral continues accruing rewards.

The competitive advantage is clear. By anchoring directly to Bitcoin rather than bridged or wrapped representations, the protocol eliminates counterparty risk inherent in traditional wrapped assets. Combined with sub-market borrowing costs, this reshapes how Bitcoin holders think about capital efficiency. The 30%+ yield on liquidity pairs makes this particularly attractive for those seeking alternatives to passive holding.

BTC2,04%

ETH1,1%

UNI-0,5%

CRV-1,36%

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AltcoinHunter

· 9h ago

1% APY really trustworthy? These days everyone wants quick gains without risks. I'll wait and see if there's an audit first. --- Is wrapping Bitcoin in DeFi just a hundredfold opportunity? Calm down, brother. First, understand where this 30% return is coming from. --- I get the idea of directly anchoring to BTC to avoid risks, but with 90% LTV leverage... be careful of liquidation. --- Earn-while-you-spend sounds pretty good, but I wonder who will catch the bag in the next crash 😅. --- Wait, is this another "revolutionary" protocol? I've already been liquidated five times [laughcry]. --- 30%+ yield? Honestly, it's a bit suspicious, feels like a pie in the sky for new investors. --- Not to hype or bash, the technical aspect is indeed interesting, but I still need to observe a bit more.

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YieldWhisperer

· 12h ago

wait hold up... 1% APY on borrowed stablecoins but somehow 30%+ on LP pairs? actually the math doesn't check out lmao

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degenonymous

· 01-11 19:59

ngl 1% borrowing cost is a bit crazy, 90% LTV really outperforms those bloodsuckers in the ETH ecosystem. 30% liquidity mining rewards... is that real? Feels too good to be true, which makes it a bit suspicious.

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governance_ghost

· 01-11 19:56

1% APY? This return is a bit disappointing; the 30% from liquidity mining is still more attractive. Compared to Ethereum's 20%+ lending rate, this really cuts deep. Wait, hold on, anchoring directly to BTC instead of wrapped? I like this logic, it reduces the layer of skin risk. The 30% LP yield sounds great, but... can it really be achieved? This earn-while-spend strategy is indeed clever, but the concern is where the risks are hidden. Miners need to reconsider; this could change the way you hold tokens.

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DAOdreamer

· 01-11 19:53

Whoa, 1% borrowing interest? That's much cheaper than Ethereum, but a 30% APY sounds a bit too good to be true...

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BlockchainArchaeologist

· 01-11 19:52

BTC locks up to mint stablecoin, a 1% lending rate is truly outrageous. Over here in Ethereum, 20%+ directly breaks the defense.

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CoffeeOnChain

· 01-11 19:50

ngl 1% lending rate is a bit too dreamy, how long will it take to realize... 30%+ liquidity mining also sounds like it could easily become the next bloodsucking pool

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notSatoshi1971

· 01-11 19:41

1% lending cost directly anchored to BTC? This is the proper use of BTC. The ETH approach is really appealing.

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