Starknet, an L2 network based on Ethereum, has announced the launch of Bitcoin staking and the beginning of a large-scale incentive program worth 100 million STRK to develop the BTCFi ecosystem.
This is reported by Finway
- Bitcoin staking is already available on the Starknet network.
- 100 million STRK will be allocated to support the BTCFi ecosystem.
- In October, investment firm Re7 will launch an institutional Bitcoin fund on Starknet.
A New Phase for BTCFi: Staking and DeFi Support
Starknet has opened new opportunities for Bitcoin holders, allowing them to participate in cryptocurrency staking without losing custodial control. This marks the first instance of native Bitcoin staking on a rollup solution, enabling users to earn rewards and contributing to the decentralization of the network.
“Last year I said that Starknet would unlock the potential of Bitcoin. Today we are fulfilling that promise, […] benefiting Bitcoin holders without losing trust,” said Eli Ben-Sasson, CEO and co-founder of StarkWare.
The BTCFi ecosystem development program on Starknet involves the use of tokenized versions of Bitcoin — WBTC, tBTC, Liquid Bitcoin, SolvBTC. All these assets, along with the STRK token, can now be delegated for staking on the Starknet platform, according to an on-chain voting decision made in August. The process is secured by zk-STARK cryptography, known for its post-quantum security properties.
Institutional Funds and New Partnerships
Starknet also plans to integrate institutional yield strategies and collaborate with key DeFi partners. In October, investment firm Re7 Capital, which manages over $1 billion in assets, will launch the Bitcoin Institutional Yield Fund on Starknet. The fund will initially target institutional investors, but thanks to its tokenized structure through MidasRWA, it will also become available to retail users.
According to Re7 founder and CIO Evgeny Gokhberg, the fund’s strategy aims for “stable and secure growth of Bitcoin through derivatives, DeFi strategies, and staking on Starknet.”
For user convenience, the network has expanded integration capabilities through XverseApp, the cross-chain protocol Hyperlane, as well as Bitcoin bridges Atomiq Labs and Garden Finance. New partnership announcements with LayerZero, BitGo, and Stargate Finance are expected in the coming days.
Recall that in September, Starknet experienced a failure that caused the network to halt block processing for over three hours.