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.
BTC1.4%
ETH1.89%
UNI0.19%
CRV-0.56%
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 6
  • Repost
  • Share
Comment
0/400
degenonymousvip
· 9h ago
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.
View OriginalReply0
governance_ghostvip
· 10h ago
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.
View OriginalReply0
DAOdreamervip
· 10h ago
Whoa, 1% borrowing interest? That's much cheaper than Ethereum, but a 30% APY sounds a bit too good to be true...
View OriginalReply0
BlockchainArchaeologistvip
· 10h ago
BTC locks up to mint stablecoin, a 1% lending rate is truly outrageous. Over here in Ethereum, 20%+ directly breaks the defense.
View OriginalReply0
CoffeeOnChainvip
· 10h ago
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
View OriginalReply0
notSatoshi1971vip
· 10h ago
1% lending cost directly anchored to BTC? This is the proper use of BTC. The ETH approach is really appealing.
View OriginalReply0
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)