BTC/UTXO Collateral for Borrowing: Unlocking Bitcoin’s Full Potential in DeFi

Axiom brings Bitcoin’s full potential into DeFi by allowing Bitcoin and UTXO (Unspent Transaction Output) assets to be used as collateral for borrowing. Traditionally, Bitcoin has been viewed primarily as a store of value rather than a financial tool for active use in DeFi. Axiom changes that by enabling Bitcoin-backed loans, unlocking a broader range of financial opportunities for users.

Axiom allows users to pledge their BTC or UTXO assets as collateral, enabling them to access loans or borrow other cryptocurrencies without having to liquidate their holdings. This feature gives users the ability to leverage their Bitcoin holdings for higher yields or to diversify into other assets, all while holding onto the underlying value of their Bitcoin.

By offering BTC-backed borrowing, Axiom allows Bitcoin holders to tap into the DeFi ecosystem and access the liquidity they need without selling their assets. This feature empowers users to maximize the utility of their Bitcoin in decentralized finance, enabling them to grow their portfolios while maintaining exposure to Bitcoin’s long-term value.