BTCFi Alpha File #01 TVL in the BTCFi ecosystem surged 543% YoY, from $987M on July 1, 2024 to $6.35B today. And this wasn’t a wave driven by airdrop meta or fleeting narrative hype. It’s the result of deep infrastructure: > Timestamp finality > LST abstraction > Modular security layers These aren’t just built for Bitcoin, they’re built into it. Under the hood? A stack of protocols solving structural limits of Bitcoin’s base design. This is Bitcoin, re-architected for DeFi. ◢ Here are my top BTCFi protocol picks: 1️⃣ @babylonlabs_io TVL: $4.8B Narrative: Bitcoin-native restaking. Babylon enables self-custodial $BTC staking using timestamp proofs. $BTC stays on L1, but secures PoS chains and earns $BABY rewards. Why It’s Unique: • No bridges or wrapped $BTC • Native restaking using Bitcoin’s consensus • 80% of BTCFi TVL flows through it Babylon made BTC restaking trustless and composable. 2️⃣ @Lombard_Finance TVL: $1.63B Narrative: Liquid staking + yield vaults. Built atop Babylon, Lombard issues $LBTC and deploys it across DeFi strategies (@Morpholabs, @pendle_fi, and DEXs) via vaults on chains like Ethereum, Sui, and Berachain. Why It’s Unique: • Unlocks liquidity for staked $BTC • Integrates with real yield markets • Cross-chain from day one Lombard turns $BTC into productive, composable capital. 3️⃣ @SolvProtocol TVL: $461M Narrative: Cross-chain BTC liquidity abstraction. Solv introduces $SolvBTC and SolvBTC.LSTs, which can be staked across @babylonlabs_io, @eigenlayer, and @symbioticfi. The Staking Abstraction Layer (SAL) coordinates validator routing, LST issuance, and yield flows. Why It’s Unique: • Dual-reserve $BTC architecture • SAL abstracts staking infrastructure • Interoperable by default Solv builds the abstraction layer Ethereum’s $BTC bridges never had. 4️⃣ @b14g_network TVL: $182M Narrative: Modular restaking with dual-token security. Users stake both BTC and the b14g token, aligning incentives and allowing protocols to plug into customizable restaking layers. Why It’s Unique: • Dual-token model reduces sell pressure • Modular security design • Sustainable tokenomics from inception b14g expands the BTCFi design surface with restaking flexibility. ✍️ My Take BTCFi isn’t chasing Ethereum’s composability arms race. It’s custody-first, trust-minimized, and structurally sound. Each of these five protocols unlocks a key piece of financial functionality: • Babylon → self-custodial restaking • Lombard → cross-chain DeFi for $BTC • Solv → liquidity abstraction & LST routing • b14g → modular restaking rails for appchains Bitcoin isn’t just hard money anymore. It’s evolving into a full-stack economic system, slowly, securely, and irreversibly. PS: I didn't include $CORE because it's a chain on its own. But still one of my favorites.