Marko discusses whether safe Bitcoin yield exists and explains that Bitcoin’s native yield is zero because of its security model. He compares demand for yield in DeFi with the much smaller share of Bitcoin currently deployed there, and reviews BTC yield products and their trust assumptions — from self-custody with no yield to highly centralized products — highlighting TBTC as a relatively strong trust-minimized option despite higher minting costs and limited adoption.

Following an example with LBTC — locked in Babylon staking, bridged through a custody setup, then used in DeFi on platforms such as Pendle and Aave — he shows how each stage adds oracle, liquidation, bridge, and liquidity risk. Using a recent Ethereum DeFi hack, he illustrates how bridge and verification weaknesses can lead to major losses when multiple layers are combined.

He outlines risk patterns in BTC DeFi: correlated failures during stressed markets, compounding risk across layers, and liquidity disappearing when users need to exit. For mitigation he compares diversification, insurance (Nexus Mutual, InsurAce) and tranching — concluding that BTC yield is never risk-free: users either bear the risk themselves or transfer it.