Two Prime CEO Calls Bitcoin Yields From Babylon and Stacks ‘VC-Funded Subsidies’
By Unchained
AI summary of the source article
Two Prime CEO Alexander Blume criticized yields from bitcoin protocols like Babylon and Stacks as venture-funded subsidies that diminish as deposits scale. Two Prime instead launched a WBTC vault on Pareto in September to lend wrapped bitcoin offchain to vetted borrowers.
Why it matters
Blume stated that protocols cannot run on venture capital indefinitely, leaving depositors "running around finding the next yield because they all dry up," while taking on new tech and hack risks.
Key facts
- Two Prime CEO Alexander Blume described bitcoin layer-2 yields from Babylon and Stacks as venture-capital-funded subsidies that pay depositors less as scale increases.
- Babylon held about 40,800 staked BTC worth roughly $3.28 billion as of Nov. 4, paying stakers in its native BABY token.
- In September, Two Prime launched a WBTC vault on Pareto that gathers assets onchain and lends wrapped bitcoin offchain to vetted borrowers.
Source excerpt · Unchained
Alexander Blume said the rewards that Babylon and Stacks offered bitcoin holders pay out less as deposits grow, and pointed to a vault Two Prime runs on Pareto that lends to borrowers offchain. The post Two Prime CEO Calls Bitcoin Yields From Babylon and Stacks ‘VC-Funded Subsidies’ appeared first on Unchained .