Camila Russo, the founder of Defiant News and author of The Infinite Machine, recently took to Twitter to crowdsource stories from people actively using Bitcoin in decentralized finance (DeFi). Her thread is a call for real-world examples where Bitcoin isn't just sitting in wallets but is being put to work—think borrowing against BTC to buy a house, starting a business, or earning passive income through yield strategies.

Why Bitcoin DeFi Matters Now

Bitcoin has long been seen as digital gold, a store of value rather than a tool for everyday finance. But with innovations like Wrapped Bitcoin (WBTC), which tokenizes BTC for use on Ethereum and other chains, and Bitcoin Layer 2 (L2) solutions or sidechains, that's changing. These tools let users tap into DeFi protocols without selling their Bitcoin, preserving its upside potential while unlocking liquidity.

In her post, Russo specifically asks for folks using BTC via WBTC, sidechains, or L2s. The responses highlight how everyday crypto enthusiasts are integrating Bitcoin into DeFi, which could inspire more adoption and even spill over into meme token ecosystems on Bitcoin-compatible layers.

Key Examples from the Thread

The thread quickly gathered practical stories. One user, Leandro from Avalanche, shared how he uses BTC.b (a bridged version of Bitcoin on Avalanche) to earn yield through lending and even experiments with AI-managed vaults. While he called it "not the most exciting," it's a solid entry point for passive income—lending BTC.b on platforms where borrowers pay interest, similar to a high-yield savings account but on blockchain.

Another highlight came from Margaret Hyde at Botanix Labs, who pointed to a post by Eugene Bulltime explaining a yield-boosting strategy on Botanix, a Bitcoin L2. Eugene detailed looping stBTC (staked Bitcoin) on Dolomite, a DeFi lending protocol:

• Stake BTC to get stBTC, which earns base yield (around 5.17% APR at the time).
• Deposit stBTC as collateral, borrow more BTC, and repeat the staking process for leveraged returns—up to 10.3% APR in his case.

This looping tactic, common in DeFi, amplifies yields but comes with risks like liquidation if prices drop. It's a prime example of Bitcoin evolving from HODLing to active financial management.

Alishiya from Botanix added a personal touch: she's borrowing USDC (a stablecoin) against her BTC on Dolomite to cover daily expenses. This is like using Bitcoin as collateral for a credit line, avoiding sales and potential capital gains taxes while keeping exposure to BTC's price growth.

Other replies touched on broader ideas, like Swan Bitcoin's mortgage programs or WBTC on Aave/Compound for loans. One commenter raised sustainability concerns around custodial risks in wrappers like WBTC, a valid point in DeFi where trustless systems are ideal.

How This Ties into Meme Tokens

At Meme Insider, we're all about meme tokens, and Bitcoin DeFi opens new doors here. Platforms like Botanix, with EVM compatibility, could host meme token launches, trading, and farming similar to Ethereum's ecosystem. Imagine meme coins backed by Bitcoin's security, where holders earn yield on their BTC while speculating on viral tokens. As more users "put BTC to work," it could fuel liquidity for meme projects on Bitcoin L2s, blending fun with finance.

The Bigger Picture for Crypto Practitioners

Russo's quest underscores a shift: Bitcoin is no longer just for holding. With tools like L2s (e.g., Stacks or Botanix) and bridges, DeFi is making BTC productive. For blockchain pros, this means exploring yields, managing risks, and innovating use cases. If you're using BTC in DeFi, her thread is a great spot to connect—tag away!

Stay tuned to Meme Insider for more on how DeFi trends intersect with meme tokens, helping you level up in the crypto space.