Can Bitcoin Fix Cardano DeFi? FluidTokens’ Bifrost Explained

Originally recorded in April 2026, this Builders Bench conversation with Raul from FluidTokens examines Bifrost, a proposed route for bringing native Bitcoin liquidity into Cardano without relying on a conventional custodial bridge. Raul explains how Bitcoin can be held through a flexible multisignature controlled by participating Cardano stake pool operators, with signing power weighted by delegated stake.Peter and Raul discuss the 67% stake threshold, how stake pool operators join the network, what an attack would require, and why Bitcoin holders may be interested in borrowing against BTC rather than selling it. The conversation also covers atomic swaps, Cardano’s UTXO model, one-click DeFi experiences and a walkthrough of the Bifrost testnet flow.Chapters:0:00 Intro1:19 What Is Bifrost?4:20 How Bifrost Secures Bitcoin8:44 Stake Pool Operators Run the Bridge10:04 Could Someone Attack It?11:44 Can Bitcoin Fix Cardano DeFi?14:57 What Bitcoiners Want17:44 One-Click Bitcoin DeFi19:08 Bifrost Testnet WalkthroughWhat you’ll learn:• FluidTokens designed Bifrost to connect native Bitcoin with Cardano while avoiding custody by a single company or bridge operator.• Bifrost’s Bitcoin multisignature is intended to be controlled by participating Cardano stake pool operators, with signing power weighted by delegated stake.• The stated signing threshold is 67% of total participating Cardano stake rather than a simple count of stake pool operators.• FluidTokens’ atomic swaps allow native BTC to be exchanged for Cardano assets without handing custody to a third party.• Bitcoin-backed borrowing is presented as an early DeFi use case for holders who do not want to sell their BTC.• Cardano’s UTXO model could help combine borrowing, stablecoin and liquidity actions into a more approachable one-click experience.• The Bifrost testnet flow uses a redeemable Bitcoin Taproot deposit so users retain a recovery path if the bridge does not process the transaction.References:• Raul: https://link.learncardano.io/plOyrH• FluidTokens: https://link.learncardano.io/I2TCAy• FluidTokens Bitcoin: https://link.learncardano.io/XTulqm• FluidTokens app: https://link.learncardano.io/6LpZan• FluidTokens docs: https://link.learncardano.io/V0BtsWEducational content only; not financial or legal advice. Do your own research.DISCLAIMER: This content is for informational and educational purposes only and is not financial, investment, or legal advice. I am not affiliated with, nor compensated by, the project discussed—no tokens, payments, or incentives received. I do not hold a stake in the project, including private or future allocations. All views are my own, based on public information. Always do your own research and consult a licensed advisor before investing. Crypto investments carry high risk, and past performance is no guarantee of future results. I am not responsible for any decisions you make based on this content.🔗 https://www.youtube.com/watch?v=Fq8FhvxET2k Subscribe to the audio podcast:🔗 https://bit.ly/learncardano-spotify 🔗 https://apple.co/3jEPM8C 🔗 https://learncardano.io/ Follow on Social:🔗