The Sui blockchain is undergoing a transformative shift in decentralized finance (DeFi) with the introduction of BTCfi Vaults, enabling users to utilize Bitcoin directly within DeFi protocols without converting it into wrapped tokens [1]. This innovation is reshaping Bitcoin’s role from a passive store of value to an active, programmable asset within Sui’s ecosystem [1]. By allowing Bitcoin to be used natively for lending, staking, and leveraged trading, the Sui network is expanding the utility of Bitcoin in DeFi [1].

Sui’s BTCfi Vaults support a range of Bitcoin-backed tokens, including wBTC, LBTC, tBTC, WBTC, xBTC, and stBTC, offering users multiple trust models and financial strategies [1]. Platforms such as Cetus, Aftermath, and Magma enable users to place limit orders, run dollar-cost averaging strategies, and provide liquidity with minimal slippage [1]. Advanced DeFi platforms like Bluefin and Typus offer perpetuals and options markets, with BTC-backed assets serving as collateral for structured products [1]. Traders can now deposit xBTC in Typus to earn options premiums, and Bluefin allows leveraged positions on wBTC and tBTC [1].

Lending protocols such as AlphaLend, Bucket Protocol, and SuiLend are further expanding Bitcoin’s utility by accepting native BTC-backed assets as collateral [1]. Additionally, auto-compounding vaults from Kai Finance and Navi, along with yield-optimizing strategies from Lotus Finance and Haedal, allow users to maximize returns on their Bitcoin holdings [1]. Metastable introduces a novel staking model where users mint and stake mBTC to earn mPoints, incentivizing long-term participation [1].

A key enabler of this ecosystem is DeepBook, Sui’s on-chain central limit order book. DeepBook facilitates shared liquidity across protocols, ensuring clear price discovery and preventing liquidity fragmentation [1]. This infrastructure allows Bitcoin to drive complex financial strategies on-chain without off-chain intermediaries [1]. Developers can now build new payment rails and yield products on a reliable layer, while traders and liquidity providers gain a versatile toolkit for Bitcoin finance [1].

The surge in SUI’s network activity, which has grown by 145% this month, highlights the rapid adoption of Sui’s smart contract and DeFi infrastructure [1]. Institutional confidence is also rising, with corporate investments exceeding $1 billion in SUI and Binance Coin [1]. Notably, Mill City—a specialty finance firm—allocated $450 million to SUI as part of its corporate treasury strategy [1]. These developments indicate growing institutional recognition and liquidity for the Sui ecosystem [1].

From a price perspective, SUI is currently trading at $3.72, with a 34% gain this month [1]. It recently tested $4.30 resistance, with a breakout potentially pushing the price toward $4.80–$5.00. However, a break below $3.50 could lead to a pullback to $3.20 [1]. Technical indicators remain bullish, with RSI suggesting balanced momentum and key support levels intact [1]. The recent consolidation phase presents accumulation opportunities ahead of a potential upward push [1].

Overall, the introduction of BTCfi Vaults marks a significant milestone for DeFi, bridging the gap between Bitcoin’s dominance as a store of value and its underutilized potential in on-chain financial systems [1]. As more protocols adopt native Bitcoin integration, the DeFi landscape is expected to become more inclusive and efficient [1].

Source: [1] Yield Farming with Bitcoin: How Sui’s BTCfi Vaults Are Changing DeFi (https://coinmarketcap.com/community/articles/688bd491c2de366c61fbeed3/)