if you're ignoring DeFi now, would you try it on Bitcoin?

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just_satFull Member
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#1Apr 13, 2018, 03:16 PM
Would you consider borrowing or lending assets on something like AAVE if it was built on a Bitcoin layer? How about buying some high-value NFTs that might pop up there? Would you be down to provide liquidity for a BTC/USDC pair on an AMM DEX like Uniswap? Just be real with your answers. By the way, I'm bringing this up because of the recent news about Bitcoin layers for USDT and USDC, which could really kickstart DeFi projects. If your answer to these questions is still a flat NO, what do you think would be some solid and beneficial use cases for those stablecoins on those layers?
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#2Apr 13, 2018, 09:34 PM
Probably not. Don't DeFi infastructures require chains/protocols with very fast transaction time/finality for the most part? I guess you could stake BTC on Babylon but like...still. Nah. Lol.
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just_satFull Member
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#3Apr 14, 2018, 03:19 AM
there are several projects (i.e. Arkade - https://www.coindesk.com/business/2026/03/12/tether-invests-in-ark-labs-to-make-bitcoin-ready-for-stablecoins-and-payments) that a building an execution layer on Bitcoin which, I reckon, will have decent transaction and finality speed as they clearly state their goal is to create infrastructure that would include lending among others. Probably won't be fast enough for trading though.
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falcon404Full Member
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#4Apr 14, 2018, 06:41 AM
They are attractive when these projects are going to give incentives to the liquidity provider but, I'm not going to go for them. After what happened to them, I don't think that there's still going to be some good ones out there when most of them have dropped so much in value.
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hodlgangMember
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#5Apr 14, 2018, 10:44 AM
What is a Bluetooth chip nft?   I think soon bluechip stocks (like nvidia and tsla) will be available as tokens in bitcoin blockchain, just like USDT. Maybe he is thinking about that.
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stake404Member
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#6Apr 14, 2018, 01:36 PM
If I remember correctly, USDT used to be based on the Omni network, which has since been discontinued due to efficiency and other technical issues. Reverting to the Omni network would be a step backward. Or, if you mean the other network was never built, I doubt the stablecoin business ecosystem would be as developed as it is now.
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ledger_gweiFull Member
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#7Apr 14, 2018, 04:26 PM
Sure why not, as long as the liquidity is enough. There were attempts to do such thing through Layer 2 but most of them failed because nobody could care about Layer 2 anymore and they lack liquidity. If somehow Tether could make the blockchain full of liquidity, assuming they are creating yet another Layer 2 on top of bitcoin, then they might succeed. Maybe finally we're breaking the curse of bitcoin Layer 2 where they don't really get utilized that much since it's Tether we are talking about. Although honestly, some of the thing you mentioned already in the bitcoin's blockchain (kinda?) such as through Ordinal's inscription.
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calmseedMember
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#8Apr 14, 2018, 07:55 PM
All of these kinds of DeFi projects have already existed in the Bitcoin ecosystem for years. They’re built around smart Bitcoin (RBTC) as the base asset and run on the Rootstock sidechain. There’s collateralized lending, NFTs, AMM DEXs, and even a solid decentralized stablecoin Dollar-on-Chain. But the fact that all of this has been around for years without mass adoption proves that there is no real demand for it among Bitcoin users. Personally, I might use decentralized stablecoins (for example, something like BTCD - Bitcoin Dollar) if there were a way to spend them in everyday stores, similar to how people can currently pay with USDC via dedicated payment cards. And if such a stablecoin actually evolved into a widely accepted means of payment, then lending services (borrowing against BTC collateral) and decentralized exchanges could become genuinely useful as well. As for NFTs, I would definitely use them when they’re applied to real-world use cases like digital access passes - hotel room keys, flight tickets, and so on. I don’t really care which blockchain they run on, as long as it’s not a corporate-controlled one managed by a limited group of entities. The reason I’m not using NFTs now isn’t because they’re not on Bitcoin - it’s because hardly anyone is offering practical implementations of these solutions yet.
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just_satFull Member
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#9Apr 14, 2018, 08:55 PM
fascinating, I indeed have never heard of any of this. Makes me wonder why Tether are actively investing in new Bitcoin settlement layers even more. Clearly there was some flaw not allowing a mass adoption? At this point I start thinking that Metamask integration is a must, which probably wouldn't be too hard as they have already stepped beyond EVM-chains with theirs Solana support.
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RogueMaxiMember
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#10Apr 15, 2018, 01:11 AM
I'd not. Aave ain't safe place to keep our money. I've seen it's get hacked several times, and it has also internal problem. The better to avoid it. I'd not. We have seen Justin Bieber who turned 2m usd to the 20k usd from buying blue chip NFT. So it's kinda stupid if we're following Justin to lose the money. I would. This is the most possible thing to do. Provide LP, then sitting on the incentive that may be created by the dex. Stable coin could be used for the various things, but the problem is that defi is immature. It has so many loopholes. This is my reason if it's related to the staking, i'd rather do it on CEX instead of DEFI. However, it's obvious i'm using bitcoin network to tx bitcoin.
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calmseedMember
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#11Apr 15, 2018, 05:58 AM
Such a flaw did indeed occur once. In 2022, after another Bitcoin Core update, transactions created on the Bitcoin blockchain during withdrawals from the sidechain stopped being accepted into mempools and, accordingly, were no longer confirmed. As a result, users were burning their smart bitcoins but receiving nothing in return. However, the issue was resolved a few months later. And since then, nothing similar, to my knowledge, has happened. I think the lack of user interest is not due to any particular technical shortcomings, but rather because Bitcoin users are used to having full control over their funds. When funds are placed into a smart contract, a significant portion of that control is effectively handed over to the contract. That is why this model has little chance of achieving widespread adoption among Bitcoin users.
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