Runes Handbook
  • 1. Introduction
  • 2. Origins
    • Segregated Witness (SegWit) Upgrade
    • Taproot Upgrade
    • Inscriptions
    • Ordinal Theory (Ordinals)
      • Rarity
      • Supply of Rare Satoshis
      • Names
    • BRC-20
    • Why Runes?
  • 3. Runes
    • Bitcoin’s UTXO Model
    • The Runes Protocol
    • OP_Return
    • Motivation for Runes
    • Bitcoin Runes vs BRC-20
    • Launch
      • The First Runes
    • What are Bitcoin Runes For?
      • Memecoins
      • DeFi
  • 4. How Do Bitcoin Runes Work?
    • Etching (Creating a Rune)
      • Name
      • Symbol
      • Divisibility
      • Premine
      • Terms
    • Minting
    • Transfering
    • Runestone
    • Rune Seasons
    • Ecosystem
      • Launchpads
      • Marketplaces
      • Wallets
      • Data / Analysis
      • Explorers
    • Storing Bitcoin Runes
  • 5. Terminology
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  1. 3. Runes
  2. What are Bitcoin Runes For?

DeFi

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Last updated 11 months ago

Bitcoin runes also open up the possibility of on the Bitcoin network. Their means they are easy to split into pieces and put back together again.

Since Runes are compatible with both the Bitcoin mainnet and Lightning network, they can be integrated into borrowing and lending platforms.

This could mark the beginning of a new era for the Bitcoin network. While Bitcoin fungible tokens (and therefore DeFi) were possible previously, the cheaper and more efficient Runes protocol will allow for more innovative and user-friendly DeFi solutions on Bitcoin.

DeFi
fungibility