Botanix Labs Closes Down, Reveals Harsh Reality of Bitcoin DeFi

A project called Botanix Labs aimed to bring decentralized financial services to the Bitcoin network. After four years of development, they announced that their Bitcoin-based Layer 2 network was being shut down.

The team behind Botanix stated that the technology worked fine, but user interest fell short of expectations. This rare honest assessment highlights why Bitcoin DeFi hasn't taken off yet.

Botanix used its own Spiderchain infrastructure, which operated for a year without any major issues or security incidents. The network processed over 25 million transactions and had around 200,000 wallets connected to it.

The team collaborated with well-known players like Chainlink, Morpho, and Fireblocks, but this wasn't enough to create a sustainable business model. The revenue from transaction fees was simply not enough to cover operating costs.