Bitcoin could become the basis of DeFi with more one-sided liquidity pools

More options for one-sided bitcoin staking could lead to consolidation of decentralized exchange aggregators, which means better liquidity for users.

For many years, Ethereum has reigned supreme over the decentralized finance (DeFi) landscape, with the blockchain serving as the destination of choice for many of the most innovative projects offering their vision of decentralized finance. More recently, however, DeFi projects have started popping up in multiple ecosystems, challenging Ethereum's hegemony. And, as we look to a future in which the technical problem of interoperability is solved, an unlikely candidate for the role of DeFi power player is emerging – Bitcoin (BTC).

In this future, Bitcoin potentially plays the most important role in DeFi – and not in a triumphalist, maximalist sense. On the contrary, Bitcoin can complement the rest of the crypto as the centerpiece of multi-chain DeFi. The key to this is to connect everything so that Bitcoin can interact with Ethereum as seamlessly as iOS and Android do today.

An argument for harmonizing Bitcoin with DeFi may come as a surprise. Commentators often contrast the established Bitcoin blockchain with its more agile and functional counterpart, Ethereum. The real “reversal,” however, is connecting DeFi to Bitcoin. This gives users the best of both worlds, combining the dexterity of Ethereum with the purity of Bitcoin. The debate revolves around what a Bitcoin-enabled DeFi industry looks like or if it is even possible to accomplish.

The underlying