Analysis of BTCFi Ecosystem Development and Asset Accumulation Strategies

Background

The flow of BTC assets on the chain can be divided into three layers:

1. Native BTC
2. Wrapped BTC, mapped assets and liquid staking BTC
3. BTC derivative assets in various DeFi scenarios

Currently, in the BTC pegged asset market, centralized wrapped BTC still dominates, but BTC LST has seen rapid growth recently, becoming an emerging force. The market size of BTC LST has reached 25.6K BTC.

Representative Cases of the BTCFi Ecosystem

Core: Focus on Incremental Assets and Token Incentives

Core is an L1 scaling solution powered by BTC, offering non-custodial BTC staking. Its TVL has reached $591.5M, with a growth of 4757.9% over six months. Core's growth strategy includes:

1. Focus on the incremental market of BTC-pegged assets, attracting Solv derivative assets.
2. Build a native protocol and quickly integrate with the BTCFi project.
3. Utilize $CORE tokens to incentivize participation

Corn: The points derivative gameplay attracts BTC LST liquidity

Corn is an emerging ETH L2 network, with a current cumulative TVL of $425.9M. Its rapid growth is attributed to:

1. Launch BTC LST point derivative gameplay in collaboration with Pendle.
2. Absorbed 11.4% of the total BTC LST market.
3. Attract initial liquidity through Kernel integration incentives.

BOB: Secure bridging and a strong ecosystem help gather assets.

BOB is a hybrid L2 network that combines BTC and ETH, with a TVL of $65.7M. Its performance is mainly attributed to:

1. Trust-minimized bridging architecture opens asset channels
2. One-click liquidity staking entry and complete ecological application scenarios
3. BOB Fusion Incentive Program Promotes Ecological Development

Summary

The key to effectively achieving ecological capital accumulation lies in:

1. Unblock and incentivize large-scale incremental anchored assets
2. Build a diverse range of DeFi applications to form combinable yield strategies
3. Provide multiple incentive expectations

Currently, the TVL of BTC pegged assets on L2 and sidechains is approximately $1.6 billion, accounting for only 0.14% of BTC's total market value. As BTC liquidity is gradually released, the BTCFi ecosystem still has tremendous growth potential.