🧞Future of BTC Liquid Staking?

Stake your BTC now...

Jul 01, 2024

GM and happy Monday frens🖖

Staking in ETH is yesterday's news. We're now entering in the Bitcoin hype, where it's still completely uncharted territory. Users now have rare chance to be one of the first to enter space.

We've asked Mikhil Pandey, co-Founder at pSTAKE Finance, building a premier BTC Liquid Staking solution in collaboration with Babylon, about staking in general and why Bitcoin is so hyped now.

So today's newsletter is about:

🪩 Must-see events
👑 Future of BTCFI
📰 This week's news

⛓️L2con is next week!

Why you must be there:

19 keynotes
6 panel discussions
24 industry experts to network with during "Ask builders"
Universal Blockchain Summit inside!

And here are some featured keynotes:

Solving Modular Fragmentation Through Clearing - Founder @ Everclear / Connext
Building on Layer 2: Strategies, Challenges, and Future Prospects for New Projects - Head of BD @ BlastUp
Introducing a Coordination Layer for Decentralized Rollups - Co-founder @ Radius
Building Universal Apps for all of crypto - Head of Community @ Zetachain
Transforming Trading with Transparent and Verifiable Computation with zkLighter - Founder & CEO @ Lighter
Everything you wanted to know about fraud proofs but were afraid to ask - Blockchain Engineer @ Cartesi

Last free 20 tickets left! Register now!

📅July 9, Brussels, EthCC

🗡️Restaking & Infra Day

We've already got speakers from 10 different companies confirmed for Restaking & Infra Day, including Eigen, Picasso, Etherfi, Zetta Block, Trust, SSV Network, 1inch!

There will be keynotes, workshops and panel discussions focused on the current restaking solutions as well as future developments and other infrastructural technologies that are essential for any restaking solutions!

🗓July 8, Brussels

Get me a ticket

🤿Deep-dive: Liquid Restaking

pSTAKE is a governance and incentivization token for a Bitcoin Yield and liquid staking protocol. It allows users to liquid stake BTC and earn rewards from securing other app chains while maintaining liquidity

Mikhil Pandey, co-founder of pSTAKE is answering our questions about Web3 staking and BTCFI.

The full version is here

In simpler term, what is liquid staking and restaking?

Staking is a way for any holder of a Proof of Stake asset, like ETH, to participate in network consensus. On every blockchain, blocks are produced with a bunch of transactions, and validators are responsible for producing these blocks. To become a validator, you need to stake some assets. For instance, if you have ETH, you can delegate it to a validator. If the validator does the right thing and validates transactions correctly, they are rewarded with new ETH tokens.

Liquid staking takes this a step further by allowing users to stake their assets while still being able to use them in DeFi activities. Instead of locking up your assets completely, you receive a liquid token that represents your staked asset, which can be used in various DeFi protocols.

Restaking, on the other hand, involves taking already staked assets and using them to secure additional networks or services. This provides an additional layer of security and generates more yield from the same staked assets.

Why is the Bitcoin ecosystem is on hype and booming right now?

The Bitcoin ecosystem is lively now because people are more open to experimenting with Bitcoin. In the past, Bitcoin was primarily viewed as a digital gold or a payment method, but now people are exploring new use cases.

This experimentation is similar to what happened with ETH DeFi. The current hype can be attributed to the market's opportunistic nature, where people are looking to capitalize on new opportunities. However, the real growth in Bitcoin DeFi is yet to come, as mainstream users have not fully entered this space.

The current market conditions are creating a perfect environment for experimentation and opportunism. While we might be in a bull market, people are looking for new ways to leverage their assets, and Bitcoin is no exception.

Despite this, the real inflows and adoption haven't come from the right places yet. It's mostly a few people providing TVL to farm some coins and then dump them. The regular user is still not heavily involved in Bitcoin DeFi. So, the hype is more about the market's potential and people wanting to capitalize on new opportunities rather than substantial mainstream adoption at this point.

Why is pSTAKE so bullish on this Bitcoin liquid staking?

Bitcoin is often compared to gold, and like gold, it traditionally has had no yield. However, with the introduction of restaking and shared security, Bitcoin can start generating yield. This is significant because Bitcoin, unlike Ethereum, has had zero yield.

The idea is that Bitcoin, as a stable and large asset, is ideal for securing other chains. Bitcoin staking provides a way to generate yield without giving up custody, which is highly appealing. With Babylon Chain, we can stake Bitcoin to secure other services and generate yield, making it a very exciting opportunity.