Cardano Founder: You'll Earn Private Bitcoin Yield Via Midnight

Cardano blockchain founder Charles Hoskinson took to The Wendy O Show to reveal a new privacy-based mechanism to earn yield on Bitcoin (BTC) via DeFi. In the recent interview, Charles Hoskinson dug deeper into the mechanics behind this Midnight-based DeFi suite that’s perfectly suited for Bitcoin Maxis.

The multi-faceted lending mechanisms on Cardano’s Midnight side-chain would deliver the deposited Bitcoins (BTC) to various lending protocols. Then, stablecoins are acquired for DeFi platform deployment to maximize the yield - this works in a similar way to liquid staking on Ethereum’s Lido Protocol, but with an additional privacy twist.

Moreover, the returns from these simultaneous yield-bearing activities at the same time are then used to purchase extra Bitcoin (BTC) on the Cardano Midnight customer’s behalf, increasing the compound yield over time in both regulatory-compliant stablecoins & Bitcoin (BTC). At the end of each accumulation cycle, the BTC will be returned to the owner.

From a Web3 user’s perspective, “you push a button & and the suddenly your Bitcoin starts paying yield like staking”, without the need to necessarily interact with advanced decentralized applications (dApps), which many crypto enthusiasts, let alone newbies, often find especially time-consuming when managing different assets at the same time.

Shared by Input Output Group, this particular segment of the Wendy O Show touches upon Cardano’s revolutionary idea of Real World Finance (RealFi), putting Cardano’s Midnight side-chain at the intersection of beyond 80 different blockchains, uniting these in a privacy-first environment that doesn’t slack on the compliance part either.

Interoperable privacy chains are the latest trend amongst institutional investors. Data protection especially matters in 2026, when hacks & phishing scams are on the rise outside out the Web3 realm as much as within it.

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