BTC(Re) staking and BTC anchor asset market competition intensifies

With the launch of the first phase of the Babylon mainnet, Pendle's introduction of BTC LST, and the various wrapped BTC products, BTCFi has once again become the focus of market attention. This article will provide an in-depth analysis of the latest developments in BTC (re) staking and BTC-pegged assets.

BTC (Re)staking market landscape

The competition between BTC LSTs is becoming increasingly fierce, with all parties vying for the staking income entry points of BTC and its wrapped assets. Over the past 30 days, Lombard Finance has achieved rapid growth, reaching the highest TVL with a deposit amount of 5.9k BTC, surpassing the Solv Protocol, which had long been in the leading position.

Lombard has formed a strategic partnership with top re-staking protocols, providing participants with richer re-staking yield sources and DeFi participation opportunities from the ETH ecosystem, thereby gaining a competitive advantage at this stage.

In the BTC LST domain, ecological strategy has become a key influencing factor in the current competitive landscape. Unlike ETH LRT, BTC LST faces more complex considerations, including downstream DeFi application scenarios, the development stage of BTC L2, the combination with various on-chain BTC pegged assets, and integration with re-staking platforms.

Comparison of the main BTC LST providers' strategies

1. Lombard Finance focuses on the development of the ETH ecosystem, providing rich external rewards for stakers through partnerships with multiple re-staking protocols. $LBTC, as the first BTC LST, has gained support from the ETH re-staking protocol and actively promotes leveraged strategies on ETH.

2. Solv Protocol and Bedrock DeFi are actively expanding across multiple chains, with ecosystem development covering upstream deposit reception and downstream application construction. The main liquidity of SolvBTC.BBN and uniBTC is concentrated on the BNB and ETH chains, while also injecting BTC liquidity into other L2s.

3. Lorenzo Protocol and pStake Finance focus on building on the BNB chain in the initial stages, supporting the reception of $BTCB deposits and the minting of LST. Lorenzo has built a yield market based on BTCFi, adopting a structure that separates liquid principal tokens and yield accumulation tokens.

Pendle Enters BTCFi

Pendle has integrated four types of BTC LSTs into its points market, including $LBTC, $eBTC, $uniBTC, and $SolvBTC.BBN. The actual adoption of $LBTC is higher than the surface value, as 37% of $eBTC is backed by $LBTC, and Pendle's integration of $eBTC also indirectly benefits Lombard.

Except for $eBTC, the other three LSTs have collaborated with Corn. Corn is an emerging ETH L2 with two unique designs: veTokenomics and Hybrid Tokenized Bitcoin. The future integration path may be: Wrap BTC → BTC LST → BTCN → DeFi, adding another layer of nested leverage to the BTCFi system.

SatLayer Joins the BTC Re-staking Market Competition

SatLayer enters the BTC re-staking space, becoming a new competitor to Pell Network. Both accept BTC LST re-staking and use it to provide security for other protocols. Pell has accumulated a TVL of $270 million, integrating major BTC derivatives across 13 networks. SatLayer is currently deployed on Ethereum and supports receiving multiple BTC LSTs.

Competition in the BTC Wrapped Token Market Intensifies

After Justin Sun's involvement in the custody of WBTC caused a stir, competition in the wrapped BTC market has intensified. Major competing alternative assets include $BTCB, $mBTC, $tBTC, $FBTC, and various BTC LST assets.

1. Coinbase launches cbBTC: Currently with a supply of 2.7k, deployed on the Base and Ethereum networks, and has received support from several mainstream DeFi protocols.

2. WBTC Multi-Chain Expansion: Despite security concerns, WBTC still holds over 60% of the wrapped BTC market. BitGo announced the deployment of WBTC on Avalanche and BNB chains, achieving multi-chain expansion through LayerZero's OFT standard.

3. FBTC is actively expanding: deployed on Ethereum, Mantle, and BNB chains, promoting widespread adoption in the BTCFi space through the "Sparkle Campaign".

Summary

In the trend of continuous growth of BTCFi, BTC (re) staking and BTC pegged assets are two key areas worth paying attention to. In the BTC (re) staking sector, there is a trend of excessive construction on the supply side, where differentiated ecological strategies and unique downstream gameplay have become the key to competition. The interconnected BTC pegged assets introduce new systemic risks, while there is also the possibility of being over-mined. Each BTC pegged asset is actively seeking integration with mainstream DeFi protocols and broad user acceptance to capture the market lost by WBTC.