The Ultimate Guide to The Best Bitcoin Yields in 2025
Now, imagine this: While the world panicked as Bitcoin plunged below $100,000 on 4 November 2025 for the first time since late June, hitting lows around $99,966 amid a brutal market sell-off, smart HODLers were quietly turning their “idle” BTC into a money-making machine.
Welcome to 2025, the year BTCFi exploded onto the scene, transforming Bitcoin from “digital gold” you just HODL into a productive asset generating real passive income. BTCFi TVL skyrocketed over 2,000% from ~$300M at the start of 2024 to more than $7B by mid-2025 (and climbing toward $20B+ ecosystem-wide by year-end), fueled by native staking, liquid restaking, and volatility-powered vaults. Platforms like Babylon and Core DAO enable native staking on Bitcoin’s blockchain, while others like Pendle tokenise future yields for trading. Centralised solutions also offer simplicity, but decentralised alternatives prioritise self-custody.
This article explores the top platforms for earning BTC yields, regardless of chain. Yields fluctuate with market conditions, so always DYOR (do your own research) and consider volatility, smart contract risks, and impermanent loss.
Why Earn Yield on Bitcoin?
Holding BTC alone yields nothing beyond potential price appreciation. Yield platforms change that by:
- Staking: Lock BTC to secure networks and earn rewards (eg, native tokens).
- Lending: Lend BTC to borrowers.
- Liquidity Provision: Add BTC to pools for trading fees.
- Derivatives and Structured Products: Use options-based vaults or yield trading to generate real yields from volatility and market movements.
Top Platforms for BTC Yields
Babylon
Babylon pioneered trustless BTC staking, unlocking over $4B TVL by April 2025. It uses Bitcoin’s time-locked scripts (CLTV) to stake native BTC, securing PoS chains without bridges or wrapping.
How it Works: Lock BTC in self-custodial vaults on Bitcoin mainnet. Delegate to validators for PoS networks (eg, Cosmos). Earn rewards split with BABY token stakers.
Current Yields: 1–3% APY in BABY tokens (up to 5% with boosts), no BTC dilution.
Pros: True self-custody, enhances BTC utility, slashing via EOTS signatures.
Cons: Rewards in alt-token (BABY volatility).
Best For: Long-term HODLers wanting Bitcoin-native security.
Core DAO
Core DAO is a Bitcoin-aligned L1 using “Satoshi Plus” consensus (PoW + DPoS). It enables non-custodial BTC staking via CLTV, with dual-staking (BTC + CORE) for multipliers.
How it Works: Timelock BTC (min. 0.01 BTC, 24h lock) and delegate to validators. Stake CORE alongside for tiers: Base (1% APY), Boost (up to 3%), Super/Satoshi (up to 4–5% with 16K:1 ratio).
Current Yields:
- Base: ~1% APY in CORE
- Boosted: 3–5% (25–50x base via dual-stake). Rewards from emissions and fees.
Pros: No wrapping, liquidity via DeFi TVL ($500M+), miner delegation adds security.
Cons: CORE price risk, tier thresholds require token buys.
Best For: BTC maxis open to light alt exposure for yields.
Starknet
Starknet is pioneering BTC staking as part of its Bitcoin execution layer vision, making it the first L2 with a dual-token consensus (75% STRK + 25% BTC staking power). BTC holders stake wrapped/tokenised BTC to secure the network, earning STRK rewards while receiving liquid staked tokens (LSTs like xyBTC) for DeFi composability.
How it Works: Bridge BTC to Starknet, stake via wallets or LST providers. Delegate to validators and earn STRK emissions as well as incentives. LSTs are usable in lending, AMMs, or yield optimisers.
Current Yields: Variable BTC APR based on formula (more BTC staked lowers individual APR). Estimates 4–12% in STRK (boosted by incentives).
Pros: Trustless (no full wrapping risks), liquid staking, institutional-grade options.
Cons: Rewards in STRK (volatility), wrapped BTC dependency.
Best For: BTC holders wanting L2 security contributions and DeFi composability on ZK chain.
Pendle
Pendle is the yield trading powerhouse with over $8B TVL across chains. It splits yield-bearing assets into Principal Tokens (PT: fixed yield) and Yield Tokens (YT: variable/speculative), enabling hedging or speculation on BTC yields.
How it Works: Deposit BTC-linked assets (eg, LBTC) into pools. Buy PTs to lock fixed rates or YTs to bet on floating yields. Integrates with BTCFi like Lombard and Babylon.
Current Yields:
- Fixed: 8–12% APY
- Floating: Up to 45% on LBTC pools (via staking multipliers)
Pros: Efficient use of capital, liquidity for yields, supports BTC perp market activity via Boros app.
Cons: Complex for beginners, YT value decays over time.
Best For: Advanced traders optimising for high-risk/high-reward.
Echo Protocol
Echo Protocol is the leading BTCFi hub on Aptos’ MoveVM, aggregating liquidity and enabling seamless yield strategies for BTC. It powers cross-chain vaults and lending, turning fragmented BTC into productive assets.
How it Works: Bridge BTC to Aptos to mint aBTC, and deploy into vaults, lending pools, or strategies. Options include staking for auto-compounding, liquidity provision on other dApps on Aptos like Hyperion and more.
Current Yields: Up to 27% APY, LP strategies hit 65%+ APR in high-reward pools.
Pros: High APYs with boosts, unified BTC across chains, ~70% of Aptos BTC liquidity.
Cons: Bridge risks.
Best For: Yield farmers chasing multi-chain BTC composability.
Yield Basis
YieldBasis is a DeFi protocol that revolutionises BTC liquidity provision in AMMs. It eliminates impermanent loss (IL) through a 2x leveraged BTC/crvUSD Curve LP position, allowing users to earn trading fees while maintaining full BTC exposure, turning fragmented liquidity into sustainable, real yield without the usual downside risks.
How it Works: Deposit BTC assets into YieldBasis to mint ybBTC. The protocol auto-borrows crvUSD (via Curve DAO credit line) to achieve 2x leverage, maintaining ~50% debt-to-value. Earn fees paid in BTC, use ybBTC in DeFi for lending, perps, or stablecoins. Stake/lock YB tokens for emissions or governance boosts.
Current Yields: ~20% net BTC APY from fees, tBTC pools up to 39%, cbBTC ~30%
Pros: Zero IL via auto-rebalancing, real BTC yields from fees, deep Curve integration for liquidity.
Cons: Leverage risks (50% LTV liquidation if crvUSD fails), dependency on Curve/crvUSD stability.
Best For: BTC liquidity providers seeking IL-free yields and DeFi composability, especially Curve ecosystem users.
Prodigy.Fi
Prodigy.Fi is a fully onchain platform for Dual Currency Investment (DCI) vaults, offering fixed yields in any market through a permissionless, non-custodial vault marketplace. Users can pick a direction (read: Buy Low or Sell High) and subscribe to Bitcoin vaults that match their view. Whether you are accumulating BTC at a lower price or selling it at a higher one, Prodigy.Fi lets you earn fixed yields based on market volatility.
How it Works: Start by choosing your direction:
- Buy Low Vaults: Earn yield while waiting to accumulate BTC at your target price.
- Sell High Vaults: Earn yield while targeting a higher BTC selling price.
Then, set your linked price and duration (eg, 24 hours). If BTC hits your target, you settle in BTC. Otherwise, in USDC. Yields come from option premiums, turning volatility into profit.
Current Yields: Up to 800% APY on BTC vaults.
Learn why Prodigy.Fi vaults offer some of the highest yields in DeFi here.
Pros: High fixed returns, non-custodial, short tenors, and audited vaults.
Cons: If BTC does not reach your target price by expiry, the order will not be executed. But you will still earn yield for the period.
Best For: Conservative holders seeking predictable income.
A Summary of The Protocols
Centralised Alternatives Are Simpler But Custodial
If DeFi feels overwhelming with its wallets, bridges, and gas fees, centralised finance (CeFi) platforms offer a user-friendly on-ramp to BTC yields. These apps and exchanges handle the heavy lifting, letting you deposit BTC via simple transfers and watch rewards accrue automatically. They are ideal for beginners or those prioritising convenience over control.
However, the trade-off is custody: You hand over your private keys, trusting the platform’s security and solvency. Post-2022 debacles like FTX and Celsius, reputable CeFi players now emphasise transparency, insurance, and audits but counterparty risk remains. Yields here are generally lower and more stable than DeFi’s highs (no 45% moonshots), but they compound daily or weekly without impermanent loss worries.
For ease, consider CeFi like:
- Nexo (up to 7% APY on BTC lending, boost to 8% with loyalty tiers, $375M insurance)
- Crypto.com (3% APY on flexible BTC Earn, fixed terms add 0.5–1%, CRO perks)
Bitcoin used to be the ultimate digital vault that was known to be secure, scarce, and stubbornly isolated from the yield-generating world of DeFi. But now with so many options, BTC holders have more ways than ever to earn passive income without selling a single satoshi.
From native staking on Babylon and Core DAO, to liquid restaking on Echo Protocol and Starknet, to yield trading on Pendle, these platforms are all designed to make idle BTC productive.
And among them all, Prodigy.Fi stands out: delivering up to 800% APY on short-tenor BTC vaults, which is some of the highest guaranteed yields in DeFi powered by volatility premiums, and fully non-custodial. Just pure, predictable income whether you are buying low or selling high.
So why let your Bitcoin sit idle when you can make it productive? With BTCFi maturing fast and yields available across chains, the era of “just HODL” is evolving into “HODL and earn.”
Disclaimer: This is not financial advice. Crypto yields involve risks and past performance is not indicative of future results.
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