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The Role of RIF in Bitcoin DeFi: Use Cases and Opportunities

The Role of RIF in Bitcoin DeFi: Use Cases and Opportunities

By Alamira •

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RIF is the Bitcoin scaling token built on Rootstock, the Bitcoin DeFi layer. RIF empowers users, developers, and institutions to unlock the full potential of Bitcoin, including decentralized governance, stablecoins, and improved user experience.

Here, we explore the key use cases of the RIF token:

1. DeFi and Stablecoin Ecosystem

RIF is integrated across DeFi use cases within Rootstock:

  • USDRIF: A decentralized, Bitcoin-secured stablecoin pegged to the US dollar.
  • Liquidity Pools: RIF can be used in AMMs like Sushiswap on Rootstock to provide liquidity.
  • Lending & Borrowing: Platforms in the Rootstock ecosystem may allow users to lend or borrow using RIF and Rootstock assets. An example of this would be Tropykus which allows users to deposit rBTC as collateral for loans.
  • Yield Farming: Incentives often include RIF-based rewards for users contributing to DeFi protocols.

2. Staking and Incentives

RIF is the driving force of RootstockCollective, a DAO designed to shape the future of Bitcoin through innovation and community participation. RIF staked in the DAO (stRIF) gives holders the ability to earn rewards paid in Bitcoin and RIF and participate in decentralised governance.

  • Earning rewards: Get paid in rBTC and RIF for contributing to ecosystem governance.
  • Voting on proposals: Help decide how RootstockCollective DAO allocates grants, sets fees, and manages the treasury.

3. Reward mechanism

RIF powers a decentralized incentive system that rewards both builders and backers in the RootstockCollective.

Builders receive RIF rewards through Collective Rewards for creating useful projects on Rootstock, benefiting from EVM compatibility and a full dev stack. Backers, on the other hand, stake RIF to receive stRIF, which they allocate to builders. In return, they earn a share of the builder’s rewards.

4. Improved UX and Digital Identity

RIF powers RNS (RIF Naming Service), designed to improve user experience when transacting on Rootstock. It allows users to create their own .rsk username. Similar to the internet’s DNS Service or Ethereum’s ENS service, RNS makes using Rootstock, Bitcoin’s leading sidechain, easier and more intuitive.

RIF is more than just a token, it’s a building block for a more scalable, usable, and decentralized Bitcoin economy. Whether you’re a developer, staker, backer, or everyday crypto user, RIF offers ways to participate, earn, and shape the future of Bitcoin DeFi.
Learn more about RIF, where you can get it, and what you can do with it here.