Stroom

Stroom is a yield-bearing BTC protocol that issues strBTC, a liquid wrapped Bitcoin token on Ethereum (and eventually other DeFi chains). BTC holders can deposit native Bitcoin and receive strBTC, which is usable across DeFi while simultaneously earning low-risk yield sourced from Bitcoin infrastructure such as Lightning Network routing fees, BitVM2 operator staking, and BTC L2 staking (CoreDAO, Stacks, Babylon). The protocol is secured by a federated bridge economically reinforced through restaking (via Symbiotic and EigenLayer), where operator collateral in ETH, stablecoins, and LSTs can be slashed to cover user losses in the event of malicious behavior.

Stroom lets people who hold Bitcoin earn a return on it, without having to sell or move their coins to a risky setup. When you deposit Bitcoin, you receive strBTC, a token that works on Ethereum and other DeFi chains. You can use strBTC in lending, trading, or other apps — and it automatically grows in value over time as yield collects.

Where the yield comes from

The protocol takes a portion of the Bitcoin held in a secure multisig bridge and puts it into several low-risk strategies approved by Stroom’s DAO (a community vote). Here are the main ones:

• Lightning Network routing fees — Stroom runs Lightning nodes that open payment channels. Every time a payment is routed through one of those channels, Stroom keeps a tiny fee (roughly 0.1%). The nodes regularly rebalance to keep capital working efficiently.
• BitVM2 operator / challenger staking — Bitcoin can be staked as an operator or challenger in BitVM2 bridges. Doing so earns rewards for helping process withdrawals and for challenging any fraudulent activity.
• BitVM2 atomic‑swap liquidity — Providing Bitcoin liquidity that powers fast, low‑cost swaps between Bitcoin and other bridged chains also generates fees.
• BTC layer‑2 staking (CoreDAO, Stacks, Babylon) — Bitcoin is staked in Proof‑of‑Stake networks to help secure them, and in return the protocol collects fees (usually paid in the L2’s own token, which can be converted back to Bitcoin).

The DAO decides how much Bitcoin goes into each strategy and can add new yield sources over time.

How the yield reaches you

Yield is distributed through a rebase mechanism. At regular intervals, a snapshot is taken of total Bitcoin under management (your deposit plus any yield earned) and compared with the total supply of strBTC. The contract then mints new strBTC in proportion to every holder’s balance. Your wallet simply shows more strBTC — no action needed on your part. This process is transparent and predictable.

If you prefer, you can wrap strBTC into wstrBTC (an ERC‑4626 vault), whose conversion price rises as rewards accumulate, giving another way to track the yield.

Who else gets paid, and what fees exist

A portion of protocol revenue goes to “restakers” — people who put up collateral (ETH, stablecoins, or liquid staking tokens) via Symbiotic or EigenLayer. That collateral can be slashed if the bridge operators act maliciously, so restakers are compensated for taking that risk. The DAO decides the split between user yield and restaker compensation.

Redemptions work 1:1 — you get back the same amount of Bitcoin you deposited, minus only the Bitcoin network’s own transaction fee. There is no separate protocol fee taken from yield generation. The only charges are the Bitcoin blockchain fee when you redeem, and the Lightning routing fee that stays with the node operator.

Stroom’s official website lists the following investors and backers: Greenfield, Lemniscap, Ankr, No Limit Holdings, Smape Capital, Cogitent Ventures, Astroid, Mission, and UF Ventures. No round sizes, valuation details, or investment dates are disclosed on the site, in the documentation, or in the whitepaper. The protocol’s blog (blog.stroom.network) was inaccessible due to a TLS certificate error.