First principles analysis of BTC ecosystem and BTCFi Many people think that the BTC ecosystem is over, but I still think we can break it open and take a look. The tracks related to BTC ecology/BTCFi can be divided into three directions. 1/Ecological Coin Represented by various protocols such as BRC-20, the main narrative is the issuance of altcoins on Bitcoin, ushering in a wave of inscriptions in 2023. However, due to the difficulty in expanding the infrastructure capabilities of Bitcoin on the chain, some of the complex gameplay related to DeFi envisioned by the community is difficult to implement, leaving only Odi, Sats, and others as ecological memes. 2/Ecological Chain Represented by various BTC Layer 2 and EVM compatible sidechains, but gradually everyone realized that these chains have nothing to do with Bitcoin in essence, just another new chain that is not decentralized, has average security, and needs to build an ecosystem from scratch. Moreover, the market value of the public chain token itself determines the height of the ecological ceiling. In the fiercely competitive world of public chains, it's not easy. 3/Ecological DeFi The core is to tap into the potential of BTC with a market value of 2 trillion yuan in DeFi activities such as lending and staking, in order to compensate for BTC's yield and liquidity. Because the implementation of the 1/and 2/directions above is not feasible, BTC needs to be introduced into other well-established and ecologically mature public chain systems. Of course, the core issues to be addressed here are security (phased), no need for permits, and other key issues, which are prerequisites for large households and institutions to be willing to participate. Recently, @ LombarddFinance, which has created a public offering history record on @ BuidlPad, is a representative project in the third direction. More than 94.73 million US dollars (over 14 times the fundraising amount) participated. Once again, it is clear that the market is not short of money, it just needs a reason to rush. Lombard's latest TVL is $1.5 billion, of which 82% of LBTC is used in DeFi, indicating good capital utilization. Deploying on 12 public chains, with over 250000 LBTC holders. Based on these foundational frameworks, Lombard recently announced a partnership with MegaETH to introduce LBTC into this high-performance public chain that is about to go mainnet, turning LBTC into a core Bitcoin asset in the ecosystem and providing a foundation for MegaETH's DeFi section. When the strongest currency and the fastest chain come together, we look forward to more chemical reactions ahead.