Bitcoin is the most secure blockchain in the world, but it wasn’t built for smart contracts or scalable applications. That’s where Rootstock comes in, a Bitcoin Layer 2 designed to bring decentralized finance to Bitcoin while staying anchored to its security.
At the heart of Rootstock there are two tokens: rBTC and RIF. They serve different purposes, but together they create a complete ecosystem for using and scaling Bitcoin in decentralized finance (DeFi).
In this article, we’ll explore:
- The technical differences between rBTC and RIF
- How each token is used in the Rootstock ecosystem
- Why they complement each other to make Bitcoin work for everyone
rBTC: Programmable Bitcoin for DeFi
What it is
rBTC is the native token of Rootstock, the most secure BTCFi layer to exist. Each rBTC is pegged 1:1 to BTC through the PowPeg, a decentralized, non-custodial two-way bridge secured by Bitcoin’s Proof-of-Work through merge mining. Unlike other wrapped Bitcoin tokens relying on centralized custodians, rBTC remains in the custody of its holders, eliminating counterparty risks.
How it works
- BTC is locked on the Bitcoin mainchain.
- The PowPeg bridge, secured by tamper-proof hardware modules and merge-mined by more than 83% of Bitcoin’s hashpower, mints rBTC on Rootstock.
- Users can deploy rBTC into DeFi protocols or redeem it for BTC at any time.
Technical standard
rBTC isn’t an ERC-20. It’s the native token of the Rootstock blockchain (similar to ETH on Ethereum). However, because Rootstock is fully EVM-compatible, rBTC can interact with ERC-20 tokens, smart contracts, and dApps built for Ethereum, all while inheriting Bitcoin’s security.
Key use cases
- Lending and borrowing BTC through various protocols launched in Rootstock, including but not limited to Avalon and LayerBank
- Earning BTC based rewards via minting, looping, and liquidity provision
- Participating in DeFi applications across 200+ protocols integrated with Rootstock
Availability
You can access rBTC via:
- Bridging BTC: This can be done via The PowPeg bridge (non-custodial, trust-minimized)
- Bridging BTC and other assets: Via DeFi integrations such as Boltz, Chainlink, LayerZero, Uniswap v3, Merkl, and more.
- From fiat: via fiat-to-crypto applications such as Onramp and Mt Pelerin
RIF: The Token That Scales Bitcoin
What it is
RIF is an ERC-20 utility token built on top of Rootstock. While rBTC represents Bitcoin itself, RIF powers the infrastructure and services that make Rootstock scalable and usable at a global level.
Technical standard
- RIF is fully ERC-20 compliant, making it easy to integrate across DeFi protocols, wallets, and exchanges.
- It functions as a service token to pay for infrastructure layers and decentralized services.
Key use cases
- DeFi: Used in protocols such as RIF on Chain to mint stablecoins like USDRIF and tokens like RIFPRO, enabling DeFi strategies on Rootstock.
- Governance: By staking RIF token holders gain voting power in the RootstockCollective DAO. The DAO directs grants, incentives, and promotes ecosystem development, ensuring that Rootstock’s growth is community-led.
Availability
RIF is widely listed on centralized and decentralized exchanges (Binance, Gate.io, Uniswap) and is integrated into DeFi protocols within and beyond Rootstock. Find the full list here.
rBTC vs RIF: How They Complement Each Other
Here’s a simplified comparison:
| Feature | rBTC (Programmable BTC) | RIF / stRIF (Infrastructure & Governance) |
| Token type | Native Rootstock token | ERC-20 token on Rootstock |
| Pegged to Bitcoin? | Yes (1:1 BTC via PowPeg) | No |
| Primary role | Paying gas on Rootstock | Power infrastructure & DAO governance |
| Use cases | Smart contracts, staking, DeFi yield, stablecoins, and more. | Payments, services, stablecoins, governance |
| Security anchor | Bitcoin’s Proof-of-Work + merge mining | Rootstock blockchain |
| Who uses it? | BTC holders, developers, institutions, DeFi users | Developers, dApps, community governance |
Together, rBTC brings Bitcoin into DeFi, while RIF makes BTCFi scalable, sustainable, and community-driven.
Why This Matters for Users
- If you’re a Bitcoin holder, rBTC lets you put your BTC to work, accessing dApps, and exploring DeFi strategies, without leaving Bitcoin’s security.
- If you’re a user or builder of decentralized services, RIF lets you access infrastructure and services that scale Bitcoin including payments.
- If you’re a community member or contributor, staking RIF gives you a voice in shaping Rootstock’s future through the RootstockCollective DAO.
This two-token system is what makes Rootstock unique: Bitcoin remains the base layer of trust, rBTC unlocks smart contract utility, and RIF ensures scalability and community-driven governance.
Final Thoughts
Bitcoin was built to be sound money. Rootstock is building the tools to make it programmable, scalable, and community-governed.
- rBTC = Your Bitcoin in DeFi
- RIF = Your way to scale Bitcoin
- stRIF = Governance and voice in the RootstockCollective DAO
Together, they give both individuals and institutions the infrastructure to move beyond passive BTC strategies and into a new era of Bitcoin DeFi.