Why are so few Bitcoins entering DeFi? Frankly, the problem boils down to trust.

Currently, most methods of integrating Bitcoin into DeFi all revolve around one key link—the custodian. You have to trust a third-party entity in order to let your Bitcoin flow within DeFi. This additional trust requirement gradually becomes the biggest bottleneck.

It also makes sense. Users originally entered DeFi to achieve decentralization, but instead, they have to rely on an institution to hold their assets, which is a bit of a facepalm. Under this model, no matter how attractive the returns are, the risk is always there.

Because of this pain point, trustless Bitcoin vault solutions have emerged. The core logic is simple—eliminate the custodian and directly address the trust issue through technical means. This way, Bitcoin holders can truly participate in DeFi with peace of mind, without bearing additional counterparty risk.

This approach is quite meaningful. Once the trust bottleneck is broken, the liquidity of trapped Bitcoin is expected to be truly unleashed, and the DeFi ecosystem can open up to more possibilities.