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StakeStone, Ethena & Lombard: How Zootosis Asset Issuers Are Reshaping Bitcoin DeFi

StakeStone, Ethena & Lombard: How Zootosis Asset Issuers Are Reshaping Bitcoin DeFi

Mitosis as the Omnichain Liquidity Backbone for BTCfi

Introduction: The $1.5T Bitcoin Liquidity Problem

With 97% of Bitcoin's value still locked in non-productive wallets (CoinShares 2024), three protocols are pioneering Bitcoin's DeFi future:

  1. StakeStone: Liquid staking for Bitcoin (STONE)
  2. Ethena: Synthetic dollar protocol (USDe)
  3. Lombard: Bitcoin restaking (LBTC)
💡 The Mitosis Connection:
These assets become 10x more powerful when made omnichain through Mitosis' miAsset standard.

1. StakeStone (STONE): Bitcoin's Liquid Staking Revolution

How It Works

  • Users deposit BTC → receive STONE (yield-bearing receipt)
  • STONE earns yield from:
    • Babylon staking
    • Bitcoin L2 validators

Mitosis Integration

// Wrapping STONE as miSTONE  
function mintMiSTONE(uint256 amount) external {  
    STONE.transferFrom(msg.sender, address(this), amount);  
    miSTONE.mint(msg.sender, amount); // Now usable on 12+ chains  
}

Use Case:

  • Deposit STONE on Ethereum → Borrow SOL on Solana at 4.2% APY

2. Ethena (USDe): The Synthetic Dollar Challenger

Key Innovation

  • Delta-neutral Bitcoin-backed stablecoin
  • 5.6% APY vs 1.2% for USDC

Mitosis Boost

Metric Native USDe miUSDe (Mitosis)
Chain Coverage 2 chains 12+ chains
Yield Opportunities 3-5% 8-12%
Liquidation Risk High Hedged cross-chain

Pro Strategy:

3. Lombard (LBTC): Bitcoin Restaking

The New Frontier

  • Deposit BTC → mint LBTC → restake to secure:
    • Bitcoin L2s (Merlin, B²)
    • Oracles (Chainlink, Pyth)

Mitosis Omnichain Magic

  1. Restake LBTC to secure Mitosis MPC nodes
  2. Earn triple yields:
    • Bitcoin staking rewards
    • Restaking premiums
    • Cross-chain liquidity mining
graph LR  
    A[Bitcoin] -->|Lock| B(Lombard LBTC)  
    B -->|Restake| C[Secure Mitosis Validators]  
    C --> D[Earn BTC + MITO + Chain Rewards]

Comparative Analysis

Protocol Asset Native Yield Mitosis-Enhanced Yield
StakeStone STONE 3.8% 7.2% (omnichain LP)
Ethena USDe 5.6% 9.1% (cross-chain strategies)
Lombard LBTC 4.2% 11.4% (restaking stack)

Data: Protocol dashboards as of June 2024

Why This Matters for Bitcoin Holders

The Old Way

  • BTC sits idle → 0% yield
  • Bridging risks (wBTC hacks)

The Mitosis Way

  1. Wrap once: BTC → miBTC
  2. Deploy everywhere:
    • Stake as miSTONE
    • Collateralize miUSDe
    • Restake as miLBTC
  3. Earn 5-12% APY with Bitcoin-native security

Risks & Mitigations

Risk Mitosis Solution
Smart Contract Risk Audited miAsset contracts
Bridge Reliance Native MPC transfers (no bridges)
Yield Volatility Auto-rebalancing algorithms

🔗 Related: Mitosis Glossary - "MPC Security"

Conclusion: Bitcoin's Omnichain Future

Through Mitosis, Bitcoin finally achieves:

✅ Productive yield without custodial risk
✅ Chain-agnostic utility beyond Ethereum
✅ Institutional-grade compliance rails

"Bitcoin was always meant to be money—Mitosis makes it the world's most powerful collateral."
— MITO Core Team

Data sources: StakeStone/Ethena/Lombard docs, Mitosis BTCfi analytics

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