- MonkeDAO has become the first DAO on Solana to adopt a Bitcoin reserve by purchasing 1 zBTC, a permissionless ERC-20 Bitcoin token created by APOLLO, enabling Bitcoin holders to participate in DeFi on the Solana network.
- This move strengthens MonkeDAO’s Strategic Monke Reserve (SMR) and showcases the potential for a permissionless Bitcoin ecosystem on Solana.
MonkeDAO, a prominent decentralized autonomous organization (DAO) on the Solana blockchain, has achieved a significant milestone by becoming the first DAO to adopt a Bitcoin reserve. This bold move is expected to enhance the DAO’s treasury strategy while enabling Bitcoin holders to actively participate in the decentralized finance (DeFi) ecosystem on Solana.
The zBTC Advantage: A New Era for Bitcoin on Solana
On March 28, MonkeDAO purchased 1 zBTC, a revolutionary token created by APOLLO. Unlike traditional wrapped or bridged Bitcoin, zBTC is an ERC-20 token native to Solana, enabling permissionless DeFi capabilities. Holders of zBTC can lend, borrow, and earn yield on-chain without intermediaries, providing a seamless and decentralized experience.
The zBTC token is backed by a trustless two-way peg, a simple payment verification sidechain, and decentralized validators on the Zeus Network. This unique setup ensures security and decentralization, allowing Bitcoin to be effectively integrated into the Solana ecosystem. APOLLO first transacted Bitcoin on Solana in December 2024, marking a crucial step toward unlocking Bitcoin’s potential in DeFi.
Strengthening the Strategic Monke Reserve (SMR)
MonkeDAO’s decision to incorporate zBTC into its Strategic Monke Reserve (SMR) aligns with its long-term vision for sustainability and asset diversification. The SMR is a treasury reserve plan designed to strengthen MonkeDAO’s financial stability and growth. By holding zBTC, MonkeDAO leverages Bitcoin’s value while embracing the advantages of Solana’s high-performance blockchain.
While MonkeDAO’s move may not rival large-scale BTC investments like those of Strategy (formerly MicroStrategy), it signifies growing confidence in BTC-backed reserves for DAOs. The adoption of zBTC sets a precedent for integrating Bitcoin into DeFi ecosystems, paving the way for more innovative financial solutions.
A Step Toward a Permissionless Bitcoin on Solana
The inclusion of zBTC in MonkeDAO’s reserve highlights the importance of unlocking Bitcoin for DeFi. With trillions of dollars worth of Bitcoin currently untapped, the potential for a permissionless Bitcoin on Solana could revolutionize the DeFi landscape. MonkeDAO’s decision is a strategic step toward realizing this vision, showcasing the power of DAOs in shaping the future of decentralized finance.