How Bitcoin Liquid Staking Unlocks Dormant BTC Capital
Summary: Explains how liquid staking protocols help Bitcoin holders use their assets productively across DeFi without giving up custody.
Most Bitcoin sits idle because it cannot be staked natively. Liquid staking protocols aim to change this by allowing BTC holders to delegate their assets to secure network operations while receiving a liquid representation token in return. This token can be used across DeFi platforms for lending, borrowing, or liquidity provision, enabling BTC to participate in broader Web3 ecosystems without leaving its underlying exposure.
As Bitcoin-focused Layer 2 infrastructure expands, liquid staking could play a key role in improving capital efficiency. It offers a way for long-term holders to keep their BTC while gaining access to additional utility.
Before participating, review the technical model and associated risks.
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Educational content for users exploring Bitcoin’s role in DeFi
Disclaimer: Not Financial Advice