The demand for yield-generating strategies around Bitcoin (BTC) is surging, especially from firms seeking liquidity without liquidating their BTC, according to Ryan Chow, co-founder and CEO of Solv Protocol.
During a fireside chat at the Token2049 conference in Dubai on May 1, Chow said institutional interest in Bitcoin yield products has grown exponentially over the past few years.
Initially, generating Bitcoin yield was nearly impossible. However, recent innovations like staking via proof-of-stake (PoS) protocols and delta-neutral trading strategies have made this possible.
Layer-1 and layer-2 advancements, such as Babylon, have made these strategies more viable. Babylon allows BTC holders to earn yield on their assets, which are used to provide security and liquidity for PoS networks.
“Bitcoin as the largest asset class here, you can stake your Bitcoin to secure the network […] that makes us feel like if it is the answer to