Users of the L2 solution Starknet can now participate in transaction validation by delegating the leading cryptocurrency to the network for rewards.
Previously, users could only stake the network’s native token, STRK.
The mechanism does not alter the base layer of the digital gold blockchain, which operates on the Proof-of-Work algorithm. Starknet supports “wrapped” versions of Bitcoin — WBTC, LBTC, tBTC, and SolvBTC — with potential for future expansion.
This new feature is positioned as the first native and sustainable source of yield for cryptocurrency investors among all rollup solutions.
“Last year, I said Starknet would unlock the power of Bitcoin. […] There is genuine beauty in the idea that the coin of the largest blockchain now helps secure another decentralized network. I am sure Satoshi would be proud of this,” said StarkWare co-founder and CEO Eli Ben-Sasson in a comment to The Block.
The non-profit Starknet Foundation has also allocated 100 million STRK (~$12 million at current rates) to develop the BTCFi ecosystem. The funds will be used to incentivize lending against digital gold collateral.
“Bitcoin is the best form of collateral. Everyone — from Michael Saylor to Wall Street — has already realized this,” noted Ben-Sasson.
Investment firm Re7 Capital has also announced the launch of a new yield product on Starknet, with a release planned for October.
The initiative is designed to generate income directly in Bitcoin through a combination of over-the-counter derivatives trading, curated DeFi strategies, and BTC staking on Starknet.
The product is structured according to institutional standards, noted Re7 Capital representatives. It will also be available in a tokenized format, opening access beyond professional investors.
Previously, macro analyst Luke Gromen stated that Bitcoin’s lack of built-in yield is an advantage that makes it a safer store of value.
