Analysis of BTCFi Ecological Development Trends and Asset Accumulation Strategies

Summary

• In the BTC anchored asset market, centralized wrapped BTC still holds over 75% dominance. However, the BTC LST market has seen rapid growth recently, emerging as a new force, with a current scale of 25.6K BTC. BTC liquid staking and points derivative markets are becoming new growth points in the BTCFi space.

• Core, as a BTC-driven L1 network, provides robust returns for users through non-custodial staking and dual staking mechanisms. Its TVL has grown by 4757.9% in six months to $591.5M. Core's growth strategy includes: focusing on the incremental market for BTC LST, building a native protocol and rapidly integrating BTCFi projects, and leveraging the $CORE token to incentivize participation.

• Corn is an emerging ETH L2 network, currently with an active TVL of $425.9M. By focusing on the yield attributes of BTC LST and derivative play, the pool launched in collaboration with Pendle attracted $290.3M in TVL, accounting for 11.4% of the total BTC LST market.

• BOB is a hybrid L2 network of BTC and ETH, attracting assets through extensive integration with BTCFi projects and one-click liquidity staking services. Currently, the TVL reaches $65.7M, mainly from $WBTC. BOB's advantages lie in its trust-minimized bridging architecture and comprehensive staking entry points and application scenarios.

Background

The on-chain flow path of ### BTC assets

The liquidity of BTC and its anchored assets on the chain can be divided into three layers:

1. Native BTC
2. Encapsulate BTC, BTC L2 and sidechain mapped assets, liquidity staking BTC
3. BTC derivative assets in various DeFi scenarios

BTC asset market status

Centralized custody-issued wrapped BTC still dominates, but BTC LST has seen rapid growth recently. $WBTC and $BTCB together account for over 75% of the circulating supply of BTC-pegged assets. The market size of BTC LST is approximately 25.1K BTC, with Lombard and Solv Protocol holding over 70% market share.

BTC pegged assets are primarily used in lending protocols. In addition to lending, BTC LST has become another important application scenario in the points trading market.

BTCFi Ecosystem's Asset Accumulation Strategy

Core: Focus on the dual drivers of incremental assets and token incentives

Core is a BTC-driven L1 scaling solution that offers robust returns through non-custodial staking and dual staking mechanisms. TVL reached $591.5M, growing 4757.9% in six months.

Growth Strategy:

1. Focus on the BTC LST incremental market and absorb Solv derivative assets.
2. Build a native protocol and quickly integrate the BTCFi project
3. Use the $CORE token to incentivize participation.

In-depth cooperation with Solv, SolvBTC accounts for 65% of Core TVL. Colend and Pell Network provide core application scenarios for the ecosystem. The $CORE token incentives and airdrop expectations support ecosystem development.

Corn: Points-based derivative gameplay efficiently attracts BTC LST liquidity

Corn is an emerging ETH L2 network that uses hybrid tokenized BTC as an incentive tool. It has attracted $425.8M in funds through deposit activities, mainly concentrated in the Pendle pool in collaboration with BTC LST.

Growth Strategy:

1. Collaborate with Pendle to lead the BTC LST point derivative gameplay
2. TVL Bootstrap Campaign to Attract Initial Liquidity

BOB: Secure bridging and a strong ecosystem empower asset consolidation

BOB is a hybrid Layer 2 network that combines the advantages of BTC and ETH. The TVL has reached $65.7M, mainly from $WBTC.

Growth Strategy:

1. Provide one-click liquidity staking services, deeply integrated with DeFi protocols.
2. BOB Fusion Incentive Program Attracts User Participation

Summary

Different networks adopt differentiated asset accumulation strategies: Core deeply integrates Solv derivative assets, Corn launches points derivative gameplay, and BOB widely integrates BTCFi projects. The key to effectively accumulating ecological funds lies in connecting large-scale incremental anchored assets to build diversified DeFi applications and incentive mechanisms. Currently, the TVL of BTC-anchored assets on L2 and sidechains only accounts for 0.14% of the total market value of BTC, indicating huge growth potential in the future.