BTO Docs
  • Introduction
    • What is BTO?
    • Market Background & Problem Statement
  • protocol ＆ features
    • Protocol Overview
    • Core Features
    • Application Scenarios
  • tokenomics
    • BTCx
    • $BTO Token
  • Governance Mechanism
    • Philosophy of Decentralized Governance
  • Future plan
    • Roadmap
  • Legal Disclaimer
    • Risk Disclosure
Powered by GitBook
On this page
  1. protocol ＆ features

Application Scenarios

BTO and BTCx are designed with utility, scalability, and composability in mind. By extending the capabilities of Bitcoin into the realm of Ethereum-based DeFi, the protocol unlocks a range of compelling applications.

5.1 BTCx in DeFi Lending

BTCx can be used as collateral in lending markets like Aave, Compound, or native lending protocols integrating BTO. Users can borrow stablecoins or other assets against their BTC holdings — without selling — while maintaining exposure to Bitcoin’s upside.

Because BTCx is verifiably backed and maintains omnichain liquidity, it poses significantly lower risk than wrapped assets with opaque custodianship. This makes BTCx ideal for lenders, and attractive for institutions seeking credible on-chain collateral.

BTCx as Liquidity in AMMs

BTCx can be paired with stablecoins or altcoins in automated market makers (e.g., Uniswap, Curve, Velodrome), facilitating deep liquidity pools that support Bitcoin price discovery across chains. LPs earn trading fees and potentially BTO incentives, while traders gain access to real BTC exposure without leaving DeFi.

Unlike traditional BTC/ETH pairs that rely on centralized wrappers, BTCx pairs provide transparency and composability — without third-party dependencies or redemption friction.

BTCx for Staking and Yield Optimization

Users can stake BTCx in protocol-native or partner-based staking contracts to earn yield. These rewards are distributed in BTO or other governance tokens, and designed to reward liquidity providers, long-term holders, and cross-chain stakers.

Yield strategies can be further enhanced via auto-compounding vaults or structured products — all fully decentralized and governed by smart contracts.

Cross-Chain Stable Collateral

BTCx can serve as a base collateral asset for decentralized stablecoins. Projects can leverage the stability and auditability of BTC reserves to issue crypto-native, Bitcoin-backed stablecoins that are more transparent and reliable than algorithmic alternatives.

These stablecoins can be used in savings protocols, payments, and DAO treasuries, effectively extending Bitcoin’s reach into real-world utility.

PreviousCore FeaturesNextBTCx

Last updated 5 days ago