As decentralized finance (defi) has become more popular, digital currency proponents are making money off of more than 140 yield-bearing cryptocurrencies. While most of the defi ecosystem revolves around the Ethereum network, a number of people leverage these defi applications in order to earn more bitcoin. The following list is a few defi platforms that allow individuals to stack satoshis by utilizing liquidity pools and lending apps.
A great number of people hold bitcoin (BTC) for a long period of time whether in a noncustodial wallet or with a custodian like an exchange. However, these days a lot of individuals are earning interest on their cryptocurrencies via defi apps rather than letting the assets sit dormant in a wallet or exchange.
As mentioned above decentralized finance (defi) has been very prominent within the Ethereum ecosystem, but there are ways people can stack satoshis by yield-producing applications.
However, in order to specifically use a defi application to gain more BTC, the user will have to utilize a tokenized version of the asset. Or they can trade and use another token that uses the ERC20 token standard. Tokenized bitcoin projects include WBTC, renBTC, hBTC, sBTC, imBTC, tBTC, and pBTC.
BTC investors can earn a yield without using tokenized BTC assets, but the platforms that offer direct interest for BTC are centralized exchanges (cex) and are custodial. For instance, data shows that BTC holders can deposit coins on Coinlist, Cred, Blockfi, Bitfinex, Crypto.com, and Poloniex and earn a 30-day average yield rate of 0.8% to 8.5% depending on the platform chosen.
In mid-August, news.Bitcoin.com published a comprehensive, deep dive into crypto earning, staking, and interest-bearing accounts.