Untapped Market

With a market cap of ~$2T, Bitcoin is dominating the crypto market with a ~60% share. Yet its share in DeFi is only 0.4% vs 18% for Ethereum — ~60x gap translating to a ~$500B untapped market. Institutions & large BTC holders want liquidity & yield without selling, wrapping, or giving up custody of their BTC. A level of capital efficiency that maintains growth potential while avoiding centralization risks and tax complications of wrapped tokens.

The Opportunity

The post-FTX shift toward self-custody, coupled with regulatory constraints on wrapped tokens and custodial rails in markets like the US, has amplified demand for secure, Bitcoin-native lending solutions. BTCFi protocols like Babylon, with $5-6B+ in TVL, highlight the explosive growth potential in BTCFi, yet current offerings primarily focus on staking rather than versatile lending.

Optimex targets this opportunity by offering BTC-backed stablecoin loans and yield strategies using self-custodial, Bitcoin-native multisig technology. This enables users to access deep liquidity and compelling rates across DeFi, stablecoins, and real-world assets (RWAs), without counterparty risks or tax complications. With the crypto-backed lending market projected to grow exponentially, Optimex is poised to capture significant institutional and high-net-worth demand, unlocking Bitcoin’s dormant capital for scalable, secure lending in the rapidly expanding BTCFi ecosystem.

Limitations of Wrapped Representations of BTC

To bring BTC liquidity into DeFi, many protocols use wrapped representations of BTC, such as WBTC or cbBTC. While these wrapped assets enable Bitcoin holders to participate in DeFi, they introduce systemic risks that Optimex’s native architecture is designed to eliminate:

• Centralized Counterparty, Custodial & Censorship Risks: Most wrapped representations rely on a centralized or federated custodian to hold the underlying BTC. This requires users to surrender asset sovereignty to a third-party intermediary, reintroducing the "single point of failure" and custodial risk that native Bitcoin was engineered to address. Besides, the centralised issuers maintain the technical capability to blacklist specific addresses and freeze tokens. This introduces censorship risk into the Bitcoin ecosystem, making wrapped assets incompatible with the requirements of users seeking permissionless and sovereign financial tools.

• Taxable Disposition Risk: In many jurisdictions (including the US, UK, and Australia), the IRS and other tax authorities treat the exchange of native BTC for an ERC-20 token like WBTC or cbBTC as a crypto-to-crypto trade. Even if the value remains 1:1, this "wrapping" process triggers a taxable event on any unrealized capital gains. For long-term holders with a low cost-basis and Bitcoin miners, this creates an immediate and unsolicited tax liability.

• Transparency & Verification Latency: Wrapped assets often operate as "black boxes" with fragmented proof-of-reserves. Unlike native UTXO-based systems, synthetic representations often suffer from verification latency, preventing users from independently and instantaneously auditing the 1:1 backing of their assets at the protocol level.

• Jurisdictional & Regulatory Fragility: As centralized financial products, wrapped tokens are subject to the legal mandates of specific jurisdictions. This exposes holders to potential asset freezes, administrative seizures, or sudden regulatory shifts that could impair the issuer's ability to facilitate redemptions.