Staking has long been a key part of decentralized finance (DeFi) for networks like Ethereum and Solana. But now, Bitcoin might finally be getting in on the action.
“Transactions running through the network generate yield, and our stakers who deposit into our contracts get a clip of that. You’re not just holding Bitcoin—you’re earning yield on top of it,” said David Mass, co-founder of Hydrogen Labs , in a conversation with TheStreet Roundtable .
Staking typically involves locking up crypto assets to help run a blockchain. In return, users earn rewards—usually in the form of tokens or yield—based on network activity. It’s been a huge draw for investors looking for passive income in the crypto space.
Liquid staking and Bitcoin
Liquid staking is similar to traditional
staking
, with one key difference: stakers receive a liquid token that represents their staked position. These tokens can be traded or used in DeFi applications, giving stakers more flexibility than with traditional staking.
Mass and Hydrogen Labs are focused on building liquid staking for 2 networks; Monad and Botanix. Botanix is a layer 2 (L2) on the Bitcoin network that brings scalability by “parlaying off Ethereum’s underlying infrastructure while incorporating asset flow from Bitcoin.”
He believes that staking brings “generational opportunity for Bitcoin holders to earn more from their assets. It opens up DeFi for them, 100%.”
“I’d say a lot of institutions will get exposure through custodians like Anchorage or BitGo—the major players in the space. It’s a bit gated for them today, but institutions will definitely partake in our product.”