Product: Bitcoin-Backed Loan
Bitcoin represents the world’s largest digital asset, with a market capitalization exceeding $2 trillion. It is widely recognized as a secure, decentralized, and censorship-resistant store of value. However, Bitcoin today remains largely idle: most holders keep it in cold wallets or centralized exchanges, unable to unlock its liquidity without selling.
BitFire’s Bitcoin-Backed Loan addresses this problem directly. By integrating tBTC, a decentralized bridge that brings BTC into programmable networks such as BNB Chain and Mezo (Bitcoin Layer 2), we enable Bitcoin to serve as trustless collateral for borrowing, lending, and structured financial products.
This product transforms Bitcoin from a static, non-productive asset into an active engine of decentralized finance (DeFi).
Core Concept
The Bitcoin-Backed Loan allows users to:
Supply BTC: Lock native Bitcoin on mainnet and mint tBTC on supported programmable chains.
Borrow Assets: Use tBTC as collateral to borrow stablecoins (e.g., USDT, USDC) or other crypto assets.
Maintain Exposure: Continue holding Bitcoin while accessing liquidity for trading, payments, or investments.
Repay Flexibly: Repay loans at any time to restore collateral health and reclaim BTC.
This mechanism mirrors traditional collateralized loans, but in a trustless, on-chain, and non-custodial environment, preserving Bitcoin’s core ethos.
Why It Matters
Unlocking Idle Capital
Less than 1% of Bitcoin’s supply is currently engaged in DeFi, compared to 20–30% for Ethereum and other programmable assets.
By enabling Bitcoin to act as productive collateral, BitFire mobilizes trillions of dollars in idle value.
Non-Custodial Security
Unlike centralized wrapped BTC models (e.g., WBTC), which rely on custodians, tBTC secures Bitcoin using a decentralized network of operators and threshold cryptography.
Users trust math and code, not intermediaries.
Capital Efficiency
BTC holders gain liquidity without selling their assets, maintaining long-term upside exposure while funding short-term needs.
This is especially valuable for institutions and long-term holders who prefer not to liquidate their Bitcoin positions.
DeFi Integration
Borrowed assets can be deployed across lending protocols, DEX liquidity pools, derivatives markets, or payment networks.
This composability extends Bitcoin’s role far beyond a store of value, embedding it into the broader digital economy.
Risk Management & Stability
The loan system uses over-collateralization, dynamic interest rates, and automated liquidation to protect lenders and maintain solvency.
This ensures resilience against market volatility, protecting both borrowers and the protocol.
Strategic Positioning
The Bitcoin-Backed Loan is more than a single financial product. It is the gateway to a Bitcoin-native financial system:
On BNB Chain, it integrates with high-liquidity DeFi markets, institutional adoption channels, and a growing user base.
On Mezo, it anchors directly into Bitcoin’s own Layer 2 ecosystem, keeping BTC within its native environment while enabling programmability.
By supporting both Ethereum-compatible and Bitcoin-native layers, BitFire creates a multi-chain foundation for Bitcoin-backed credit, stablecoins, and advanced financial products.
Vision
BitFire envisions a world where Bitcoin is not only a global reserve asset, but also a core collateral layer for decentralized finance. The Bitcoin-Backed Loan is the first step in this direction—transforming Bitcoin from passive capital into productive, yield-generating, and composable liquidity.
With this product, Bitcoin holders can:
Borrow without selling.
Earn yield on collateral.
Participate fully in DeFi.
Unlock capital efficiency while preserving sovereignty.
In short: BitFire makes Bitcoin financeable.
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