GOAT Network: Babylon I am not targeting you, I am talking about all of you here, BTC L2 are all garbage

GOAT Network contributor kevinliub published an article titled "Is BTCFi Really Dead?" The gist is that BTCFi and BTC L2 projects led by Babylon have all dropped significantly after issuing tokens. The core reason is that their yields rely on self-subsidization or third-party token subsidies, lacking native BTC yield support (mainly relying on token issuance for yield).

The logic of most BTC L2's "dividend scheme" is that users stake BTC and other assets, sacrificing capital security and liquidity costs in exchange for yields. But when the yields cannot cover the costs, the project either stops dividends (like babylonlabs_io's meager airdrops to users), or simply gives up and runs away (like the "Scythe King" Merlin). These projects essentially rely on harvesting third-party tokens, with no sustainability.

The solution proposed by GOATRollup: based on the security of native BTC, utilize ZK Rollup to build an efficient L2. A portion of the yields generated from L2 economic activities (such as gas fees) is returned to BTC holders as a reward for providing liquidity and security, which may break this status quo.