Apart from wBTC, Stacks and Rootstock, BadgerDAO, RenVM and Liquid Community promote numerous use circumstances of Bitcoin DeFi.

BadgerDAO

A decentralized autonomous group (DAO) referred to as BadgerDAO makes it doable for BTC to be utilized as collateral throughout numerous DApps. The BadgerDAO makes use of the Ethereum-based token BADGER for protocol governance and incentive distribution. 

Customers can earn revenue on their artificial BTC belongings utilizing Sett Vaults, the primary product provided by Badger. Customers can lock up their tokenized Bitcoin in SETTs, that are swimming pools of tokens, and let sensible contracts handle their holdings to supply a yield within the type of bTokens.

The second product from Badger, referred to as Digg, is software program that controls the elastic-supply cryptocurrency referred to as the DIGG token, pegged to the value of BTC in United States {dollars}. Like another token, DIGG will be deposited into SETTs to supply a yield for its holders and utilized in DeFi protocols. 

RenVM

The decentralized Ethereum protocol Ren creates tokens that monitor the worth of non-Ethereum belongings akin to Bitcoin and affords liquidity to tasks on a number of blockchains. That stated, Bitcoin holders could make the most of Ren (wanted to pay nodes) to entry Ethereum’s array of DeFi merchandise with out promoting their BTC or shifting their belongings throughout blockchains.

The Ren digital machine holds the unique funds in storage, accepts tokens from one blockchain, and generates new tokens on one other by its RenBridge to trade belongings between blockchains. For instance, a consumer could submit BTC to the RenVM, which might concern renBTC, a brand new token on Ethereum that will replicate the unique Bitcoin, that means when the consumer desires to get their Bitcoin again, the transaction could also be reversed.

Liquid Community

The Liquid Community is a layer-2 Bitcoin resolution and an inter-exchange settlement community that allows the difficulty of digital belongings like safety tokens, stablecoins and different monetary devices privately and shortly on prime of the Bitcoin blockchain.

LBTC, a wrapped model of Bitcoin, serves because the native token on the Liquid sidechain. Customers ship BTC to a Lightning Community tackle (a course of referred to as peg-in) on the Bitcoin community to make use of the Liquid Community. An identical amount of LBTC is minted on the Liquid Community and delivered to the consumer’s tackle after the transaction has acquired 102 confirmations.

As well as, peg-out will be initiated to withdraw BTC by sending LBTC for burning to an irrecoverable tackle, which, when receiving two separate confirmations, lets a Lightning Community member ship the unique BTC to a consumer’s Bitcoin community tackle.