With the Fed expected to cut interest rates, capital is flowing into Bitcoin DeFi to chase yield, and Plasma captures a large part thanks to the refined lending module. DefiLlama reports that the individual lending TVL has reached 300 million USD, an increase of 120% from Q3 due to integration with Aave-like pools using BTC collateral. The average borrow/lend volume is 150 million USD/day, with attractive APY of 6-10% for stablecoin pairs.
Economic model evolve: $XPL holders stake for governance vote on risk parameters, reward from 20% protocol revenue. The latest raise was 15 million USD in a bridge round from Galaxy Digital, tweet @Plasma 3/11: "Institutional lending live with over-collateralized BTC pools. $15M to enhance risk engine." Partnership with Fireblocks for custody integration, allowing funds like Grayscale to offload BTC into Plasma without leaving cold storage, boosting institutional volume to 55% of the total.
Movement analysis: Borrow demand spike from arbitrage bots between spot and perps, utilization rate 75% – higher than Morpho by 15%. Sequencer audit completed by Trail of Bits, uptime 100% last month, but risk remains from flash loan attacks if oracle fails. Compared to Ethereum L2, Plasma prioritizes Bitcoin-native assets, avoiding wrap risks but limiting cross-chain speed.
The market $XPL light breakout at 0.0012 BTC, resistance 0.0014. Accumulate below support 0.001 if pullback, watch for sequencer-related oracle delays. A solid project for yield hunters in the Bitcoin bull market.
