Most successful crypto investors will agree that it is always good to have a substantial quantity of bitcoin in your portfolio of digital assets, because it is the oldest, most precious and secure token. However, this is disadvantaged, because Bitcoin is one of the rare digital currencies that cannot be easily used to generate a yield.
This is why a large part of the supply of bitcoin circulation on the market has simply remained inactive, seated in the portfolios of countless users who do nothing more than hope that the price will increase. This is known as “Hodl”, and even if it could be extremely profitable in the past, because Bitcoin has produced amazing gains, most believe that these days have been over.
With Bitcoin now evaluated at around $ 100,000, it is unlikely that it will pull as it did at the start of the crypto. But that does not mean that Bitcoin holders should be satisfied with just moderate gains.
In the wonderful world of deffi, there are ways to put bitcoin at work. One of the most popular methods is to use Bitcoin to test WBTC, or “wrapped bitcoin”, which is an ERC-20 token on Ethereum blockchain. It is possible to exchange your BTC for WBTC on a 1: 1 basis, then to use these WBTC tokens to participate in activities such as the loan, borrowing and supply of liquidity via various DEFI platforms based on Ethereum.
But although WBTC can be rewarding, it is not a very good option for those who appreciate the decentralized nature of the crypto. The WBTC drawback is that it is an extremely centralized token. To experience the Fresh WBTC, it is necessary to deposit BTC tokens with an intermediary known as Bitgo, which acts as a goalkeeper for all the guarantees that support WBTC in circulation. This is necessary to support the value of the WBTC, but it creates an enormous risk, because Bitgo has become a target of great value for pirates, eager to extract the billions of dollars of value that live in its wallets.
Admittedly, the risk of Bitgo piracy is small, because it has managed to do so so far. But just because it has not yet been hacked that it is 100% safe in the future. Add to that, there is always the risk that Bitgo can behave badly. We know from the previous episode with the FTX exchange that apparently renowned cryptographic companies can and do not get married, using their customers’ deposits to make risky investments, etc. Although the founder of the FTX, Sam Bankman, intentionally lost his customers’ funds, the fact is that he was extremely reckless and finally did that exactly.
A safer way to use BTC in Defi
Fortunately, there is a much safer way to generate a return on Bitcoin without accepting the risks of centralization. Thanks to the progress of Bitcoin’s programmability, BTC holders now have the possibility of putting their capital to work in Solana’s DEFI ecosystem, while avoiding counting on intermediaries or guards.
All thanks to a new protocol called Zeus Network, which has created a gateway without authorization which unlocks greater potential for BTC on the Solana blockchain, where it is represented as a ZBTC token. Users can exchange their BTC for ZBTC and use it to participate in a DEFI ecosystem which quickly catches up with that of Ethereum.
Zeus has built a potential architecture which allows ZBTC to take advantage of the secure bases of Bitcoin itself while benefiting from the rapid transaction flow of the Solana blockchain. After recently validating its first BTC transaction on Solana, Zeus shows the potential to deliver a winning combination, merging the most secure blockchain with the most effective of all.
The key is Apollo Dapp de Zeus, which simplifies the BTC transfer process to Solana. To use it, simply connect your Bitcoin wallet and place BTC in the DAPP, and it will learn an equivalent number of ZBTC tokens. Because the deposit acts as guarantee, this means that the value of ZBTC is always fixed to that of BTC, similar to what WBTC is. However, the difference is that Zeus does not use any caretaker. Instead, the tokens are locked in an intelligent contract controlled by the network of validators and guardians of the Zeus protocols, which means a kind of decentralized guard.
The key to understanding is that no validator or tutor can access any BTC deposit. This can only be done when the participants of the network reach consensus, and in turn, it can only happen when the legitimate owner of the BTC burns the ZBTC tokens which they initially struck.
Zeus has created a number of technological innovations to facilitate this system, including something called “bidirectional hooks”. Meanwhile, the Apollo Dapp acts as a kind of integration layer which makes the accessible to the Solana DEFI ecosystem.
The way it works is that when a user wishes to deposit BTC at Mint ZBTC, the nodes will offer a transaction and will subject it to a program state. This creates a programmable signature, then the nodes relate the transactions signed to the Solana network. When nodes try to act maliciously, they will certainly be captured by others, which means that their floor deposits will be reduced as a punishment. This process guarantees that the Zeus protocol is always protected.
It is a simple and elegant way for BTC holders to access a growing range of popular deficits on Solana and start to gain performance according to their participations. They should no longer be satisfied with simple “heaps” because they can take their capital to DAPPs like Marginfi, Solend and Kamino funding and find many possibilities of yield. Of course, with Zeus locking their original BTC deposits, all users will always be satisfied if the price of the BTC jumps considerably.
Institutional request for BTC return
Given the significant increase in the institutional capital flowing in Bitcoin in the past year, Zeus is an extremely timely and promising innovation. Some of the biggest Bitcoin investors these days are the new funds or ETF negotiated on the stock market that emerged last year, and their institutional donors will not be satisfied to sit and hold the assets when There are revenue generation opportunities to have.
Now consider this – The BlackRock FNB Ishares Bitcoin Trust alone has held more than $ 59 billion in BTC assets at the time of writing this document. It’s a lot of capital and a lot of responsibilities on the shoulders of BlackRock representatives.
The temptation to use a non -guardian communication layer like Zeus to obtain a yield on these deposits is enormous, and it will increase if the price of bitcoin cannot increase considerably, because its customers ETF expect to see significant yields .
Zeus offers institutions exposed to Bitcoin an unprecedented opportunity, not only to win the performance, but to do so while taking advantage of Solana’s effective blockchain infrastructure, which has the fastest transaction speeds and among the costs of lowest gas from any decentralized network. Using DEFI based in Solana instead of Ethereum, institutions can avoid strangulation bottlenecks associated with traditional DEFI and maximize their yielding strategies.
What is all the more convincing is that Zeus is not seated, because he plans to develop in stable -co -collateralized Bitcoin stables, which will offer other opportunities to generate a return. In addition, the management of the NFT, ordinal and runes based on Bitcoin is also in progress.
While Zeus widens its capacities, its association with Solana can be used to position itself as the essential tool for the generation of bitcoin elements. And with the wider challenge ecosystem of Solana itself ranging from force to force, there are good reasons to think that it could be flooded with Bitcoin liquidity in the coming months, bringing Advantages with each involvement involved.
