The Top 8 DeFi Apps on Bitcoin L2 Stacks

As Bitcoin enters its fully programmable era, layer 2s are leading the way for countless new use cases for the world's most secure, decentralized, and adopted cryptocurrency.

As Bitcoin enters its fully programmable era, layer 2s are leading the way for countless new use cases for the world’s most secure, decentralized, and adopted cryptocurrency. Builders are writing the next chapter for Bitcoin with Stacks, the leading L2 for Bitcoin.

The Nakamoto Release, bringing Fast Blocks & Bitcoin Finality to Stacks, is currently being rolled out.

This article explores eight different decentralized applications built on Stacks.

Please be aware that participating in decentralized finance (DeFi) carries inherent risks. Users should conduct thorough research and exercise caution before engaging in any DeFi activities.

Type: Decentralized Exchange, Launchpad, Farming & Staking.

What You Can Do: Trade assets, lend and borrow, launch products, earn yield.

Overview:

ALEX is a decentralized application on Bitcoin L2 Stacks that combines a decentralized exchange, a launchpad, and yield farming and staking. It enables users to trade assets, lend and borrow, and launch products, all while earning yield.

Here’s an example of how you can get started:

Visit ALEX, launch the app, and connect your wallet.

Swap your STX into the ALEX token.

Stake ALEX to receive yield.

Type: Liquid Stacking.

What You Can Do: Earn yield stacking STX without losing liquidity.

Overview:

Stacking DAO is a decentralized application on Bitcoin L2 Stacks that provides liquid stacking for STX. It allows users to earn yield by stacking STX without losing liquidity, enabling them to participate in the consensus and earn rewards simultaneously.

Here’s an example of how you can get started:

Visit Stacking DAO, launch the app, and connect your wallet.

Deploy STX into Stacking DAO.

Receive stSTX.

Type: Borrowing and lending, Money Market on Stacks.

What You Can Do: Lend your assets to earn yield or borrow against your assets.

Overview:

Zest is a decentralized application on Bitcoin L2 Stacks that offers borrowing and lending services. It functions as a money market on Stacks, allowing users to lend their assets to earn yield or borrow against their assets to access immediate liquidity.

Here’s an example of how you can get started:

Visit Zest, launch the app, and connect your wallet.

Add STX to liquidity pools.

Receive STX.

Type: Decentralized Exchange, Farming & Staking.

What You Can Do: Trade stablecoins, swap Bitcoin, earn yield on native BTC.

Overview:

BitFlow is a decentralized application on Bitcoin L2 Stacks that serves as a decentralized exchange for stablecoins and a gateway for swapping Bitcoin. It enables users to trade stablecoins, swap Bitcoin, and earn yield on native BTC.

Here’s an example of how you can get started:

Visit BitFlow, launch the app, and connect your wallet.

Deploy the stSTX token into the STX-stSTX reward pool.

Receive STX.

Type: Vaults.

What You Can Do: Vault your stSTX to earn yield.

Overview:

Hermetica is a decentralized application on Bitcoin L2 Stacks that provides vaults for stSTX. These vaults enable users to earn yield on their stSTX by automatically compounding the rewards and deploying the tokens into optimal strategies.

Here’s an example of how you can get started:

Visit Hermetica, launch the app, and connect your wallet.

Deposit stSTX into the Earn Vault.

Receive yield on your stSTX.

Type: Stablecoin, collateralized debt position.

What You Can Do: Get a synthetic dollar called USDA.

Overview:

Arkadiko is a decentralized application on Bitcoin L2 Stacks that issues a synthetic dollar called USDA, backed by BTC and stSTX. It allows users to easily obtain the synthetic dollar by swapping STX for USDA and then USDA for USDC on Bitflow.

Here’s an example of how you can get started:

Visit Arkadiko, launch the app, and connect your wallet.

Swap STX for USDA.

Swap USDA for USDC on Bitflow.

Type: Bridge.

What You Can Do: Bridge your Bitcoin L2 assets to Bitcoin Meta-Protocols and other chains.

Overview:

XLINK is a decentralized application on Bitcoin L2 Stacks that bridges Bitcoin L2 assets to Bitcoin Meta-Protocols and other chains. It enables users to bridge their assets, such as USDT from Ethereum, to sUSDT on Bitcoin L2 Stacks.

Here’s an example of how you can get started:

Visit XLINK, launch the app, and connect your wallet.

Bridge your USDT from Ethereum to sUSDT on Bitcoin L2 Stacks.

Type: Decentralized Exchange.

What You Can Do: Swap assets, earn yield, and trade with leverage.

Overview:

Velar is a decentralized application on Bitcoin L2 Stacks that offers a decentralized exchange with advanced features.