Starknet expands BTCFi push as Vesu pays STRK rewards to Bitcoin borrowers

Vesu Pays STRK Rewards to Bitcoin Borrowers on Starknet

Introduction

Borrowing money usually costs money, but on Starknet, borrowers are now being paid to do it, at least partially. Vesu, a lending protocol on Starknet, lets users borrow against Bitcoin and earn STRK rewards on those loans.

How Vesu Works

Vesu operates as a modular, permissionless lending market, allowing its pools to be set up for different assets and risk profiles. The tokens eligible for both collateral and rewards are WBTC, LBTC, SolvBTC, tBTC, and strkBTC.

Reward Mechanics

Borrowers who take out stablecoins against that BTC collateral can claim STRK rewards every week. During reward periods, loans taken through Sats Terminal can carry effective net APRs that sit near zero or even dip into negative territory.

The 100 Million STRK Backdrop

The Starknet Foundation has set aside 100 million STRK for its BTCFi Season program, which is built to encourage onchain Bitcoin activity, borrowing included.

Implications for Borrowers and Starknet

For borrowers, the cost math is the obvious draw. A loan with a near-zero or negative net rate is unusual in almost any market. The cheap borrowing window lasts only as long as the reward periods run and the STRK keeps flowing.

Near-Term Signals to Watch

The near-term signals to watch are straightforward. Watch whether Vesu's volumes and total value locked climb during the reward periods, how quickly the 100 million STRK allocation is put to work, and whether borrowing activity holds up when the incentives eventually wind down.