Generating passive income through DeFi lending and borrowing platforms like Compound, MakerDAO, and Sumer.money presents an effective strategy for maximizing the potential of idle crypto holdings. However, while DeFi offers various income-generating opportunities, most are tailored for Proof-of-Stake (PoS) blockchain networks, leading to Ethereum dominating the DeFi landscape with over $52 billion locked in value compared to the total $90 billion across all blockchains. This raises a question: what options are available for investors who prefer holding Bitcoin (BTC)?

Traditionally, Bitcoin operated solely within its blockchain, limiting investors to speculative gains tied to price fluctuations. Fortunately, recent advancements in DeFi have paved the way for integrating BTC into smart contract ecosystems like Ethereum and Avalanche. One such innovation is Wrapped Bitcoin (WBTC), an ERC-20 token backed one-to-one by BTC, allowing users to tap into Ethereum's DeFi ecosystem. While this approach exposes BTC to potential Ethereum gains, it relies on centralized custodians, posing security concerns.

Alternatively, multi-chain synthetic assets offer a decentralized solution for BTC holders to earn passive income across various DeFi protocols. Platforms like Sumer.money facilitate seamless cross-chain communication, allowing users to deposit BTC and mint equivalent synthetic BTC (SuBTC) usable across different blockchains without compromising security or liquidity.

Bridging BTC to other blockchains like Avalanche provides another avenue for optimizing DeFi yields. Unlike WBTC, tokens like BTC.b on Avalanche operate on a decentralized, non-custodial model. However, composability limitations mean accessing DeFi opportunities outside the Avalanche ecosystem may require additional technical expertise.

In conclusion, with Bitcoin's growing adoption, optimizing portfolios by leveraging DeFi yields presents a compelling strategy. While navigating DeFi may seem complex, early adoption offers the opportunity to generate returns on otherwise idle assets.