I really understand more and more as I watch! In everyday life, everyone knows this: when you use scissors to cut cloth, you don’t go and force it to chop wood! No matter how you use it, it feels extremely awkward. And the same goes for the crypto world—it's the same logic.
I’ve also noticed that many people have a misconception: they naively think that the mature DeFi playbook built on Ethereum can be directly copied and applied to Bitcoin. Then they could replicate a wave of benefits. But I want to tell everyone a fact—after researching for so long, I’m convinced this path is fundamentally a dead end.
In my view, Ethereum—since the day it was born—was made for on-chain finance. Liquidity pressure, borrowing, liquidations, dividends—all run automatically via smart contracts. The loop is complete, and the ecosystem is already mature. It really is smooth to play.
But Bitcoin’s underlying positioning is completely different. Honestly, I think its name and mission have only two things: ultimate security and ultimate store of value. It’s simply not meant for complex, high-frequency financial operations.
So I’ve always said that over the past more than ten years, all of BTCFi has been like pretending. Since native BTC can’t be used, people come up with WBTC, cross-chain mapping, multisig custody solutions. To put it plainly, in my opinion, 99% of the BTC finance out there isn’t actually dealing with “real” Bitcoin—it’s just a piece of paper a centralized institution issues as a receipt.
When a bridge goes dark, a platform blows up, or custody teams run away—then the ecosystem collapses in a domino effect. That’s a hard flaw that traditional BTCFi can never solve. I’ve seen too many market crashes caused by exactly this kind of panic.
It wasn’t until Babylon’s TBV permissionless custody vault came out that I truly saw the breakthrough—and finally broke the deadlock.
Let me be blunt! No packaging, no cross-chain, no handing it to a third party. Real native BTC stays on the Bitcoin mainnet, and you can directly provide liquidity, do borrowing, and conduct finance.
In my understanding, this is the industry’s first time enabling Bitcoin to upgrade from merely “lying there” as digital gold for store of value—into a top-tier financial asset that can actively generate yield, be reused, and be circulated.
I personally tested it on the testnet not long ago. To be honest, the technical architecture is taken to the max, but the product experience is really just so-so—it still needs to be refined slowly.
But it can be confirmed: in my view, native BTCFi is truly the next super main storyline for the coming bull cycle.
#baby $BABY @BabylonLabs_io
I’ve also noticed that many people have a misconception: they naively think that the mature DeFi playbook built on Ethereum can be directly copied and applied to Bitcoin. Then they could replicate a wave of benefits. But I want to tell everyone a fact—after researching for so long, I’m convinced this path is fundamentally a dead end.
In my view, Ethereum—since the day it was born—was made for on-chain finance. Liquidity pressure, borrowing, liquidations, dividends—all run automatically via smart contracts. The loop is complete, and the ecosystem is already mature. It really is smooth to play.
But Bitcoin’s underlying positioning is completely different. Honestly, I think its name and mission have only two things: ultimate security and ultimate store of value. It’s simply not meant for complex, high-frequency financial operations.
So I’ve always said that over the past more than ten years, all of BTCFi has been like pretending. Since native BTC can’t be used, people come up with WBTC, cross-chain mapping, multisig custody solutions. To put it plainly, in my opinion, 99% of the BTC finance out there isn’t actually dealing with “real” Bitcoin—it’s just a piece of paper a centralized institution issues as a receipt.
When a bridge goes dark, a platform blows up, or custody teams run away—then the ecosystem collapses in a domino effect. That’s a hard flaw that traditional BTCFi can never solve. I’ve seen too many market crashes caused by exactly this kind of panic.
It wasn’t until Babylon’s TBV permissionless custody vault came out that I truly saw the breakthrough—and finally broke the deadlock.
Let me be blunt! No packaging, no cross-chain, no handing it to a third party. Real native BTC stays on the Bitcoin mainnet, and you can directly provide liquidity, do borrowing, and conduct finance.
In my understanding, this is the industry’s first time enabling Bitcoin to upgrade from merely “lying there” as digital gold for store of value—into a top-tier financial asset that can actively generate yield, be reused, and be circulated.
I personally tested it on the testnet not long ago. To be honest, the technical architecture is taken to the max, but the product experience is really just so-so—it still needs to be refined slowly.
But it can be confirmed: in my view, native BTCFi is truly the next super main storyline for the coming bull cycle.
#baby $BABY @BabylonLabs_io