Binance Labs-backed liquid staking protocol pStAKE Finance has unveiled its liquid staking solution for Bitcoin in the latest development for Bitcoin-native decentralized finance (DeFi).pSTAKE Finance’s solution, built on top of Babylon’s Bitcoin staking protocol, aims to simplify the Bitcoin staking process and offer additional yield generation opportunities for Bitcoin (BTC) holders.The protocol decided to build Bitcoin-based staking solutions from a fundamental belief in the world’s oldest cryptocurrency, aiming to make it a yield-generating asset, according to Mikhil Pandey, the co-founder and chief strategy officer of pSTAKE Finance.Pandey told Cointelegraph:The initiative is part of a wider movement known as Bitcoin DeFi (BTCFi), which aims to bring DeFi capabilities to the world’s first blockchain network. Investor interest in Bitcoin-native DeFi solutions started growing with the 2024 halving, which also saw the launch of Bitcoin Runes — a new protocol for issuing fungible tokens on the Bitcoin network.The independent venture capital (VC) arm of Binance, Binance Labs, has also shifted its focus to BTCFi ahead of the halving after announcing an investment in Bitcoin-native restaking protocol BounceBit on April 11.Related: BTCFi is an ‘enormous opportunity’ to make Bitcoin a productive asset — StacksThe launch of the liquid staking solution marks pSTAKE’s first endeavor into Bitcoin-native DeFi, after building its liquid staking protocol on Cosmos for the past three years.BTCFi is making Bitcoin a yield-generating asset for the first time.pSTAKE’s new solution is among many protocols aiming to make Bitcoin a yield–generating asset.At the beginning of May, Hermetica announced the launch of the first-ever Bitcoin-backed synthetic United States dollar with yield-generating capabilities. Slated for release in June, the new synthetic dollar, USDh, will offer users yields of up to 25%.According to pStake’s co-founder, the BTCFi industry is seeing the culmination of various promising products that make Bitcoin more capital-efficient. However, he believes that there’s still more development needed before BTCFi could match Ethereum-level DeFi. Pandey explained:However, making Bitcoin a more versatile asset holds a significant financial opportunity, added Pandey:Related: Stacks active accounts reach record high amid growing interest in Bitcoin DeFi
