4 posts tagged with "BTCFi"

The Bitcoin whitepaper proposed a peer‑to‑peer electronic cash system designed to build a more resilient financial world. The very first block referenced bank bailouts, signalling a challenge to the old order. Over time, however, the network's limited throughput and the growth of custodial exchanges turned BTC into a passive store of value, digital gold instead of the productive medium envisioned at its birth.

Uncap exists because this story isn't finished. Starknet's scalable rollup architecture combined with upcoming improvements such as BitVM and OP_CAT, offer a credible path to bring trust‑minimised Bitcoin (and eventually trustless Bitcoin) into decentralized finance. Uncap is building on Starknet because it is the most committed L2 to this vision: the network supports Bitcoin staking, pushes BTCFi initiatives, and is actively researching how to make Bitcoin usable across its ecosystem. We believe Starknet is where BTCFi will flourish.

The story of Bitcoin isn't finished, and today marks the next chapter. Born from the conviction that Bitcoin can do more, Uncap is built to return Bitcoin to its peer-to-peer roots and turn it from a dormant asset into the productive backbone of a new financial system.

This guide will walk you through what Uncap is and how you can participate from day one.

DeFi has grown from a small niche to an industry attracting tradFi giants in a couple of years. Many of you still remember DeFi summer and the countless experimentations with DEXs, lending protocols, stablecoins, etc.

As DeFi matures, a core ethos is getting lost. Decentralization isn't about being decentralized for its own sake, it's about leveraging decentralization to build great products that are inherently resilient. For stablecoins, the backbone of DeFi, this has created a glaring paradox. The ecosystem runs on centralized stablecoins like USDT and USDC, re-introducing the very censorship and single-points-of-failure DeFi was meant to eliminate. This isn't to say centralized stablecoins don't have their place. They are gaining significant adoption and serve as a practical bridge to traditional finance, offering simple USD exposure and payment rails.

However, the core principle of Decentralized Finance cannot be built upon regulated stablecoins that can be frozen by a single company or regulator. Decentralized stablecoins are the essential oil for the DeFi engine. This fundamental contradiction existed for a simple reason: there wasn't a truly great decentralized stablecoin product available.

This week marks a major milestone as we officially unveil Uncap. We are building the liquidity layer for BTCFi on Starknet, as we believe it to be the place where the BTC economy will flourish.

Uncap is composed of two core components: USDU, a BTC-backed stablecoin, and a powerful liquidity engine that creates a flywheel for the entire ecosystem.