BitFi
About
BitFi is an on-chain asset management platform that combines centralized finance (CeFi) and decentralized finance (DeFi) through a CeDeFi architecture. It provides yield-bearing liquid staking tokens for Bitcoin (bfBTC) and USD stablecoins (bfUSD), enabling both institutional and retail investors to access diversified yield strategies. The platform bridges institutional-grade custody and trading infrastructure with DeFi composability and transparency.
Where Does Yield Come From?
BitFi generates yield by blending strategies from both centralized finance (like traditional trading firms) and decentralized finance (like crypto lending and staking). This hybrid approach aims to offer diversified returns.
For bfBTC, which represents Bitcoin: when users deposit BTC, it is moved onto a blockchain and put to work through trading and liquidity strategies on Binance, using a system called MirrorX. The earnings from these activities, plus extra rewards from the protocol, slowly increase the value of each bfBTC token compared to the underlying BTC, while still allowing 1-for-1 redemption.
For bfUSD, a stablecoin: users create it by locking USDT or USDC as collateral. They can then stake their bfUSD into one of two yield vaults:
- Horizon (hbfUSD) aims for steady, low-risk returns using market-neutral trading strategies.
- Pulsar (pbfUSD) targets higher yields but comes with the possibility of temporary losses.
These two vaults are connected. A portion of the earnings from the low-risk Horizon vault is used to boost the yields in the higher-risk Pulsar vault. In return, Pulsar's capital acts as a safety net for Horizon if its strategies face a stressful period.
The platform's yield comes from several sources:
- Mostly from quantitative trading (about 90% in low-risk, market-neutral strategies and 10% in more opportunistic trades).
- Partnerships within the broader DeFi ecosystem that provide additional staking rewards.
- Distributions of incentives directly from the protocol.
BitFi's design includes features to manage risk, such as sharing protection between different pools, using secure price data from Chainlink, and relying on institutional-grade custody services.
Audits
| Audit / Date | Findings | Verdict |
|---|---|---|
SlowMist Security Team05-12-2024 - 06-12-2024 |
| The audit revealed one critical vulnerability that was promptly fixed, along with a medium-risk excessive authority issue acknowledged by the team, demonstrating generally effective response to security findings though centralization risks remain. |
SlowMist01-12-2025 - 05-12-2025 |
| The audit revealed no critical or high-severity issues, with two medium risks and several low-severity suggestions that were acknowledged by the development team, indicating generally robust code quality with some centralized privilege concerns. |
SlowMist05-12-2024 - 06-12-2024 |
| The audit uncovered a critical deposit amplification vulnerability that was fixed, along with several medium-risk and suggestion-level issues, resulting in a medium overall risk rating after remediation. |
SlowMist01-12-2025 - 05-12-2025 |
| The audit revealed two medium-severity vulnerabilities with potential fund loss implications, alongside several informational improvements, all of which were acknowledged by the development team, indicating satisfactory remediation awareness. |
Backers
BitFi raised a $50 million seed round on August 25, 2024. The round includes investors Fundamental Labs, CGV Fund, Hemi Labs, Citizen Journalists Network, IBC, and other leading investors. No further funding rounds, dates, or amounts are disclosed on official sources.
Legal
Status and notes
No legal entity information disclosed on official sources. Website shows contact email [email protected] and copyright notice "Copyright 2025 BitFi. All right reserved". No terms of service, privacy policy, imprint, or entity registration details are visible.