How do BTC and Bitcoin Cash DeFi options compare?

Bitcoin (BTC) has traditionally resisted native DeFi options due to the predominant view that such features conflict with BTC's fundamental store-of-value characteristic. Developers on the BTC network have shown minimal initiative in enabling DeFi functionalities directly on the chain. The BTC blockchain currently lacks a dedicated DeFi infrastructure, and the most optimistic scenario involves using cross-chain protocols or wrapped BTC on Ethereum Virtual Machine (EVM) chains. The prospect of native BTC DeFi faces uncertainty, lacking interest from both users and developers.

Bitcoin Cash, in contrast, has witnessed growing interest in DeFi options among users and developers. Although delays were initially faced due to community distractions and challenges related to the direction of development, recent years have seen significant progress.

Memo.cash pioneered native, on-chain DeFi on the Bitcoin Cash blockchain, enabling non-custodial buying and selling of Simple Ledger Protocol (SLP) tokens.

In 2020, General Protocols introduced the AnyHedge protocol, a decentralized financial solution featuring a collateral-based protocol with no systemic dependencies. BCH Bull, powered by AnyHedge, allows users to hedge the value of Bitcoin Cash against other assets or take leveraged long positions, showcasing substantial a total value locked of millions of dollars.

Since the CashTokens upgrade in 2023, TapSwap became a leading NFT-trading platform, extending its functionality to include fungible token trading, while Cauldron DEX introduced non-custodial automated liquidity protocols for seamless swapping between BCH and CashTokens.

BCH Guru, integrating NFTs with a price prediction app, adds a unique dimension to Bitcoin Cash DeFi, emphasizing complete non-custodial security. The platform plans to introduce a variety of games and features in subsequent releases.

Learn more in our deep dive into the differences between BTC and Bitcoin Cash.