Starknet, the Ethereum Layer-2 scaling solution, will officially launch Bitcoin (BTC) staking on its mainnet on September 30, 2025. This significant development, approved by the Starknet community with 93% support, represents a major step in integrating Bitcoin into the decentralized finance (DeFi) ecosystem, particularly within the growing BTCfi sector.
The staking feature will utilize wrapped Bitcoin tokens, including WBTC, LBTC, and SolvBTC, allowing users to stake their Bitcoin without moving it directly to the Ethereum network. A key innovation is the reduced unstaking period of just 7 days, compared to the typical 21-day period on many platforms, providing users with greater liquidity and flexibility.
This integration comes at a time when the BTCfi ecosystem is experiencing rapid growth. According to DeFiLlama, the total value locked (TVL) in Bitcoin DeFi protocols recently surpassed $8.4 billion, reflecting an 8% increase in just 24 hours. Starknet's move is expected to further boost this figure by bringing Bitcoin's substantial liquidity into its high-speed, low-cost environment.
The staking mechanism involves tokenizing native Bitcoin through secure custodians or smart contracts, creating wrapped tokens that are then bridged to Starknet. Users can then deposit these tokens into various DeFi protocols to earn rewards, typically in the form of native protocol tokens or other cryptocurrencies.
While offering new yield opportunities for Bitcoin holders and enhanced liquidity for Starknet's DeFi ecosystem, the feature also carries potential risks including smart contract vulnerabilities, custodial risks associated with wrapped tokens, and market volatility.