- •Bitcoin staking: Starknet enables BTC holders to stake wrapped assets on its mainnet without giving up custody, earning STRK rewards.
- •Incentives: A 100 million STRK program targets liquidity, lending, and borrowing to make the protocol the cheapest place to borrow against Bitcoin.
- •Institutional push: Re7 Labs launches a Bitcoin yield fund with retail access via MidasRWA, expanding BTC DeFi participation.
Starknet, the Ethereum layer-2 network powered by zero-knowledge proofs, has officially launched native Bitcoin staking on its mainnet. The rollout marks the first time BTC holders can stake their assets directly on a layer-2 without giving up custody, earning rewards in the network’s native STRK token. Backed by a 100 million STRK incentive program, the initiative aims to expand Bitcoin’s role in decentralized finance while positioning the layer 2 as a hub for BTC liquidity and borrowing.
NATIVE BITCOIN STAKING GOES LIVE
The launch, announced on September 30, allows BTC holders to delegate wrapped assets such as WBTC, LBTC, tBTC, and SolvBTC to Starknet validators. These staked assets can contribute up to 25% of the network’s staking power, aligning Bitcoin with Starknet’s consensus and decentralization goals. Unlike centralized custodial solutions, Starknet’s design ensures users retain full control of their assets while participating in transaction validation and earning rewards.
100 MILLION STRK INCENTIVE PROGRAM
To accelerate adoption, the Starknet Foundation has committed 100 million STRK to incentivize Bitcoin-related activity. The program targets wrapped BTC liquidity, lending, and stablecoin borrowing, intending to make Starknet the most cost‑efficient venue for borrowing against Bitcoin. Rewards are distributed in STRK, reinforcing the token’s role in the ecosystem. As of late September, STRK carried a market capitalization of $498 million, though its price has declined significantly since its 2024 peak.
INSTITUTIONAL AND RETAIL YIELD STRATEGIES
Starknet has partnered with London‑based Re7 Labs to launch a Bitcoin Institutional Yield Fund, offering both on‑chain and off‑chain yield opportunities. Retail investors can access similar strategies through MidasRWA, a tokenized version of the fund. Re7 has also introduced an Automated Liquidity Market Maker on Ekubo, enabling liquidity provision across BTC, ETH, STRK, and stablecoin pairs. These initiatives aim to unify institutional and retail participation in Bitcoin DeFi.
STARKWARE’S VISION FOR BITCOIN DEFI
Eli Ben‑Sasson, CEO of StarkWare, described Bitcoin as “pristine capital” that has been underutilized in DeFi due to centralized exchanges’ dominance. He argued that Starknet is positioned to become both the financialization and execution layer for Bitcoin, leveraging zero‑knowledge proofs to balance scalability, privacy, and compliance. With integrations from partners like LayerZero, BitGo, and Stargate, Starknet is expanding cross‑chain accessibility while setting its sights on becoming a central hub for Bitcoin’s next phase of adoption.