DeFi: Evolution, Not Threat, for Bitcoin
At Token2049 in Dubai, Kevin Farrelly (Franklin Templeton) shared a key insight: DeFi is not a threat to Bitcoin — it’s an evolution. His firm’s investment in Bitlayer, a Bitcoin Layer 2 solution, reflects growing support for expanding Bitcoin’s functionality without diluting its core purpose.
Why It Matters:
Bitlayer brings smart contracts and faster transactions to Bitcoin, enabling DeFi features like lending, borrowing, and DEXs. This marks a shift from Bitcoin as simply “digital gold” toward a more active role in the decentralized economy.
Understanding DeFi:
DeFi enables services like interest-earning loans, trading on decentralized exchanges, and stablecoin transfers — all without banks. Projects like Aave, Compound, and Uniswap offer access to financial tools via smart contracts.
What Changes for Bitcoin?
With DeFi on Bitcoin, users can earn yield, miners get more fee-based rewards, and the ecosystem gains new use cases. As block rewards shrink, DeFi provides a sustainable alternative for network growth.
Let’s Discuss:
• Will DeFi help Bitcoin scale and evolve?
• Which DeFi-on-Bitcoin projects do you believe in?
• Is this the future Satoshi envisioned?
Join the conversation — AMAGE.
