pSTAKE Finance has announced the expansion of its Bitcoin Liquid Staking solution to BNB Chain. This development will introduce yBTC, a pSTAKE-issued liquid staking token (LST) for Bitcoin, to BNB Chain users, and support BTCB deposits. This initiative aims to unlock significant capital currently sitting idle, offering BNB Chain users new opportunities to generate yields through Bitcoin staking.
The integration of Bitcoin staking with BNB Chain represents a major advancement in the decentralized finance (DeFi) space. By allowing BTC holders to stake their native Bitcoin, pSTAKE’s product enables them to earn native staking yields via protocols like Babylon. This process converts Bitcoin into a slashable asset, enhancing economic security for Proof-of-Stake (PoS) chains and providing rewards for BTC holders.
The pSTAKE liquid staking solution initially launched on July 28, 2024, quickly reaching its 50 BTC deposit cap within three weeks. The addition of yBTC to BNB Chain is expected to enrich its already robust DeFi ecosystem, which includes leading protocols such as Venus Protocol, PancakeSwap, and Aave. With over $6.7 billion in total value locked (TVL) and a $4 billion supply of Binance-wrapped Bitcoin (BTCB), BNB Chain stands at a unique intersection of Bitcoin and DeFi.
BTCB, a tokenized version of Bitcoin on BNB Chain, enables BTC holders to engage with the BNB ecosystem while maintaining a 1:1 peg to Bitcoin’s value. Managed by Binance, this wrapped Bitcoin variant offers fast transactions and low fees, bridging the gap between Bitcoin and the BNB Chain DeFi ecosystem. BTCB is already supported by various DeFi protocols, and the addition of pSTAKE will further enhance its utility.
The move to bring yBTC to BNB Chain will also provide additional Bitcoin liquidity, offering DeFi protocols the ability to use yBTC as collateral and generate further yields for users. BTCB holders will benefit from the ability to stake directly with pSTAKE, contributing to the security of PoS chains through Babylon and earning rewards in the process.
Gala Wen, Director of Ecosystem Development at BNB Chain, emphasized the significance of this expansion, noting that it aligns with BNB Chain’s mission to make Web3 accessible to the next billion users. The integration of Bitcoin liquid staking on BNB Chain not only broadens DeFi opportunities but also brings pSTAKE closer to its goal of simplifying Bitcoin yield access.
Overall, this expansion is poised to significantly impact the DeFi landscape, providing enhanced yield opportunities for Bitcoin holders and driving further adoption of decentralized financial services.
