DeFi
Top 8 DeFi Apps on Bitcoin L2 Stacks
Check out the top 8 DeFi apps on Bitcoin L2 Stacks with the highest number of users.
As Bitcoin enters its fully programmable era, Layer 2s are paving the way for countless new use cases for the world’s most secure, decentralized and adopted cryptocurrency. Builders are writing the next chapter for Bitcoin with Stacks, the first L2 for Bitcoin.
The Nakamoto version, bringing Fast Blocks and Bitcoin Finality to Stacks, is currently rolling out. This article explores eight different decentralized applications built on Stacks.
Please note that participating in decentralized finance (DeFi) carries inherent risks. Users should conduct thorough research and exercise caution before engaging in DeFi activities.
Type: Decentralized Exchange, Launchpad, Farming & Staking.
What you can do: Trade assets, lend and borrow, launch products, earn yield.
Preview:
- ALEX (Automated Liquidity Exchange) aims to be the “Great app for Bitcoin“by connecting the capabilities of Bitcoin Layer 1 (L1) and Layer 2 (L2) technologies to create a DeFi platform built for Bitcoin via Stacks smart contracts.
- ALEX offers a suite of products including a decentralized exchange (DEX) using automated market makers (AMM), swaps, liquidity pools, staking, yield farming, launchpad for Bitcoin projects , a Bitcoin Oracle, and more.
- Read it documents
Here is an example of how you can get started:
1). Visit ALEXlaunch the app and connect your wallet
2). Exchange your STX for ALEX token
3). Bet on ALEX to receive a return
Type: Stacking liquid.
What you can do: Earn yield by stacking STX without losing liquidity.
Preview:
- Stacking DAO is a liquid stacking protocol on Stacks that allows users to earn native yield through Stacking and allows users to simultaneously allocate their assets to other Bitcoin DeFi protocols (and earn additional yield) .
- Liquid stacking solves the critical problem of providing liquidity to Stackers, as Stackers must lock up their STX to participate in the Stacks Consensus. Through its Liquid Stacking protocol, Stacking DAO provides users with a self-composing tokenized representation of stacked STX (stSTX).
- Read it documents
Here is an example of how you can get started:
1). Visit DAO Stackinglaunch the app and connect your wallet
2). Deploy STX in Stacking DAO
3). Receive stSTX
- 4). Receive yield and use stSTX across the Stacks DeFi ecosystem
Type: Borrowings and loans, money market on Stacks.
What you can do: Lend your assets to earn returns or borrow against your assets.
Preview:
- Zest is an on-chain lending protocol designed for Bitcoin. It aims to create a dynamic borrowing and lending ecosystem around BTC without a trusted intermediary.
- Zest Protocol offers two types of pools:
- Earn pools, where users earn a yield on their BTC
- Borrowing pools, where users borrow against their BTC
- Read it documents.
Here is an example of how you can get started:
1). Visit Zestlaunch the app and connect your wallet
2). Add STX to Liquidity Pools
3). Receive STX
Type: Decentralized exchange, farming and staking.
What you can do: Trade stablecoins, trade Bitcoin, earn yield on native BTC.
Preview:
- BitFlow is a decentralized exchange (DEX) that allows Bitcoiners to trade, borrow, and earn with their Bitcoin.
- BitFlow focuses on stable price assets (like stablecoins and Bitcoin swaps) to offer users deep liquidity pools and low fees. Additionally, by focusing on Bitcoin, BitFlow will provide a yield on native BTC without introducing custody risk.
- Read it documents
Here is an example of how you can get started:
1). Visit BitFlowlaunch the app and connect your wallet
2). Deploy the stSTX token into the STX-stSTX reward pool
3). Receive STX
Type: Coffers.
What you can do: Put your stSTX in a safe to gain yield.
Preview:
- Hermetica is a DeFi protocol based on Bitcoin.
- Hermetica is the safest way to operate your Bitcoin. Earn, trade and accumulate more Bitcoin without ever giving up custody of your tokens.
- Hermetica Vaults are automated, self-executing strategy entities through which the user can deposit assets and the vault executes investment strategies.
Here is an example of how you can get started:
1). Visit Hermeticlaunch the app and connect your wallet
2). Deposit stSTX into Earn Vault
3). Receive yield on your stSTX
Type: Stablecoin, collateralized debt position.
What you can do: Get a synthetic dollar called USDA.
Preview:
- Arkadiko is a DeFi platform that allows users to obtain a stablecoin, USDA, using STX as collateral. This stablecoin can be used in DeFi.
- Arkadiko leverages the stacking rewards of STX tokens to create a self-repayable loan paid by the yield earned from stacking STX.
Here is an example of how you can get started:
1). Visit Arkadikolaunch the app and connect your wallet
2). Exchange STX for USDA
3). Exchange USDA for USDC on Bitflow
Type: Bridge.
What you can do: Link your Bitcoin L2 assets to Bitcoin meta-protocols and other chains.
Preview:
- Bitcoin Bridge aggregates liquidity on Bitcoin L2s, with the aim of bringing a “native-like” DeFi experience to Bitcoin.
Here is an example of how you can get started:
1). Visit XLINKlaunch the app and connect your wallet
2). Link your USDT from Ethereum to sUSDT on Bitcoin L2 Stacks
Type: Decentralized exchange.
What you can do: Trade assets, earn yield and trade with leverage.
Preview:
- Velar is a liquidity protocol with a suite of DeFi services built on Stacks. Velar uses automated market makers to bring trading and yield farming to Bitcoin.
- Coming soon: Velar is also building a decentralized perpetual exchange, allowing users to trade with up to 20x leverage.
Here is an example of how you can get started:
1). Visit Velarlaunch the app and connect your wallet
2). Add STX to Liquidity Pools
3). Receive STX