The concept of earning yield on BTC has been one of the most challenging narratives in crypto. On paper, the logic seems solid, but in practice, user adoption is minimal. The market attributes this to the fact that retail investors hold very little BTC, and the yield isn’t attractive enough for the old OGs to take on on-chain risks. Plume’s idea of bringing BTC into RWA (Real World Assets) seems to be about pitching this demand to traditional institutions, using licensed custodians and legal frameworks to alleviate concerns about on-chain security. The issue of BTC yield boils down to two aspects: On the yield side, the capacity for on-chain incentives is too limited. It’s almost impossible for any project to sustainably subsidize BTC. Attempts at Real Yield haven’t yet achieved scale. The goal of exploring this direction is to see if there’s demand and capacity in traditional markets to absorb BTC off-chain. On the security side, it’s a matter of lacking a sense of security. For just a few points of yield, at least for me, I wouldn’t put my BTC into any protocol. On the other hand, I’d be more open to something like cbBTC custody, even though it’s far from crypto-native. This lack of security requires a lot of time and practice to bridge. In the end, it all comes down to TVL.