Bitcoin, known for its hefty transaction fees, is getting a major upgrade thanks to tBTC launching on Starknet. This means Bitcoin holders can now easily participate in the world of decentralized finance (DeFi) without breaking the bank.
Cheap Bitcoin DeFi: It’s Finally Here
For years, using Bitcoin in DeFi has been expensive. Average Bitcoin transaction fees hover around $1.49, and during peak times, they’ve soared to over $90! This made complex DeFi strategies impractical for most users.
But tBTC on Starknet changes the game. Transactions now cost a mere $0.01, making Bitcoin viable for even frequent, small-scale DeFi activities. This low cost is due to Starknet’s highly efficient technology.
“Bitcoin on its main network is like gold bars in a vault – valuable, but unusable,” explains MacLane Wilkison, Co-Founder of Threshold Labs. “On Starknet, Bitcoin becomes usable capital for trading, lending, and more.”
What tBTC Brings to Starknet
The launch of tBTC on Starknet is a big deal for several reasons:
- Ultra-Low Fees: Transactions cost just $0.01.
- Instant Confirmation: Transactions are confirmed almost instantly.
- High Throughput: The system can handle hundreds of transactions per second.
This makes Bitcoin a practical tool for:
- Trading: tBTC is already live on Ekubo, a Starknet decentralized exchange (DEX).
- Lending: Soon, users will be able to lend and borrow tBTC on Vesu, similar to existing services on Ethereum.
- New Applications: Low fees open doors for new applications like streaming payments, automated trading strategies, and even Bitcoin-powered gaming.
Future plans include integration with perpetual swaps, collateralized debt positions (CDPs), yield vaults, and improved oracle networks.
Security and Scalability
Unlike some other wrapped Bitcoins, tBTC uses threshold cryptography, meaning multiple independent nodes secure the funds, eliminating the need for a single point of control and KYC. Starknet’s zero-knowledge proofs ensure scalability and security.
How to Get Started
You can access tBTC on Starknet in two ways:
- Direct minting: Mint tBTC directly from your Bitcoin using the Threshold UI.
- Bridging: Bridge your existing tBTC from Ethereum to Starknet using StarkGate.
The Big Picture
With a market cap exceeding $2 trillion, Bitcoin’s presence in DeFi is surprisingly small. tBTC’s launch on Starknet aims to change that by making Bitcoin a practical and affordable asset for DeFi participation. This could lead to a significant expansion of the Bitcoin DeFi market.
About Threshold Network and Starknet
- Threshold Network: The creators of tBTC, a decentralized, 1:1 Bitcoin-backed asset.
- Starknet: A highly scalable, low-fee, decentralized zero-knowledge rollup.
This initiative is poised to revolutionize how Bitcoin is used in the DeFi space, opening up exciting new possibilities for both Bitcoin and DeFi users.
