Bitcoin (BTC) has historically been a poor yield asset, but that is changing. The days of sub-0.5% BTC yields are ending as new opportunities emerge in Bitcoin's Layer-2 (L2) scaling networks and decentralized finance (DeFi) ecosystems.

The total value locked (TVL) on Bitcoin's L2s has surged to approximately $1.4 billion as of September 5, up nearly 275% year-to-date and tenfold since 2023. Some L2s, such as Core Chain, Babylon, and Spiderchain, are exploring Bitcoin-native staking, similar to proof-of-stake (PoS) networks like Ethereum.

Regular Bitcoin holders previously had to settle for sketchy centralized finance (CeFi) platforms or pitiful DeFi yields. However, the emerging opportunities in Bitcoin's L2 and DeFi ecosystems are game-changers, offering the potential for more meaningful BTC rewards.

Source: https://cointelegraph.com/news/bitcoin-yield-opportunities-booming-what-to-watch-for

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