Trading activity is the true economic engine of BTCFi!
The current BTCFi ecosystem is like a newly started machine, with a huge engine (capital) and fuel (demand), but the RPM is not fast enough. Trading is the power that truly gets this machine running.
Without trading, there is no price discovery.
Without price discovery, there is no liquidity.
Without liquidity, there will be no real returns!
The significance of LBTC is not only to earn interest on BTC but also to enable Bitcoin to circulate genuinely on-chain. Lending, trading, hedging, and collateralizing form a complete economic closed loop.
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Why hasn't this been fully articulated?
You will find that most people discussing BTCFi will get on stage to talk about how TVL has increased several times, but no one talks about who is trading? Where does the trading volume come from? Where does price discovery happen?
The fact is, without continuous trading, there will be no stable returns. The story of DeFi is not about depositing and earning interest, but about capital continuously circulating and creating efficiency.
What LBTC is already doing is allowing Bitcoin to regain economic velocity. Once it circulates fully on mainstream DEXs, Lending, and Perp? That will be the true moment when the BTC economy goes live!
In summary, holding LBTC ≠ receiving returns, but participating in the revival of the Bitcoin economy itself. From static collateral to a dynamic economy, this step is what truly makes BTCFi financial, rather than just a yield farm!
#KaitoYap @KaitoAI #Yap $BARD @Lombard_Finance
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