In its ongoing quest for truly workable scaling solutions and credible real-world use cases, the blockchain world has a tendency to get lost in all its noise and hype.
But one project within it has stepped quietly apart from the surprise and excitement to offer something concrete: BOB (Build on Bitcoin). It launched on May 1, 2024, and is busy redefining what it means to be a Bitcoin Layer 2. Not by leaning on buzzwords and hollow promises but by delivering actual products and truly engaging with a user-first Calvinist approach — ‘We build not for payers in the future but for the users we have today’ — and by constructing, right out of the ground in the practical Bitcoin DeFi ecosystem, built to last.
Beyond Testnet Hype: A Real Chain for Bitcoin DeFi
In early 2024, a number of self-proclaimed “Bitcoin L2s” found themselves distracted by testnet farming, speculative airdrops, and the kinds of attention-seeking marketing that often accompany new crypto projects. BOB, however, took a different path (though it would seem safe to assume that it, too, is trying to attract users in this very competitive market). Rather than claim ideological purity or await any life-changing upgrades to the Bitcoin core code, BOB concentrated on very much what is in its power to do right now: creating a functional, secure, and quite accessible DeFi network on top of the Bitcoin blockchain.
At its core, BOB is a hybrid rollup that combines the security of Bitcoin with the flexibility of the Ethereum Virtual Machine (EVM). This dual-anchored architecture gives users the best of both worlds: the trust and resilience of Bitcoin, and the programmability of Ethereum. Crucially, BOB is upfront about its hybrid nature, aiming to build a home for Bitcoin-native DeFi today — not in some hypothetical future.
The launch signified the start of a true user-first development, with meaningful use cases and integrations operational from the outset. The protocol is now part of the wider Optimism Superchain ecosystem that encompasses large-scale crypto projects such as Base, Mode, and Infinex. BOB isn’t just holding forth on the prospect of DeFi on Bitcoin; it’s busy making it happen.
A User-First Network Backed by Top VCs and Founders
The powerhouse of support in the crypto investment world and a solid product vision are propelling BOB in its early days. In the first round of fundraising, BOB brought in $11.6 million from large-name firms such as IOSG Ventures, Coinbase Ventures, Alliance DAO, Bankless Ventures, and Castle Island Ventures, co-founded by Nic Carter.
Angel investors with clout have also tossed some of their influence behind this project, including Stani Kulechov, founder of Aave, and Domo, creator of Ordinals. Trevor Owens, of the Bitcoin Frontier Fund, and Andrew Kang, of Mechanism Capital, also have this project in their portfolio.
At the ecosystem level, BOB has very rapidly brought key protocols on board. DeFi heavyweights like Uniswap and Euler Finance are integrated, while native Bitcoin DeFi platforms like Lombard Finance, Solv Protocol, and Bedrock DeFi are pushing adoption through BTC staking and yield-generating innovations. You can already earn real yield from BTC-denominated assets, use LSTs (liquid staking tokens), and enjoy airdrops from active BitcoinFi projects — all with seamless on-ramps and integrations.
The Bitcoin DeFi Flywheel Is Already in Motion
The long-term thesis of BOB spans a sustainable Bitcoin DeFi flywheel and revolves around it. BOB is already in motion: The majority of Total Value Locked (TVL) on BOB is BTC, and that seems to reflect a real deep alignment with Bitcoin-native users. This reflects the basis of BOB. Its focus on enabling one-click BTC LST integrations and generating sustainable yield and liquidity.
Unlike many DeFi systems that depend on inflationary rewards, BOB’s yield stems from real network activity: transaction fees, DeFi interactions, and smart contracts secured by Bitcoin. This boosts user trust and draws more BTC holders seeking ways to make their assets work.
The forthcoming bridge for BitVM — already co-developed with BOB’s outstanding team — will allow BTC to flow securely and seamlessly into DeFi applications at BOB. You might think this is something inspired by Bitcoin, but no; in fact, the BOB network is secured, not by any altcoin, but by real BTC.
One of the largest node operators in the Babylon Staking Network (BSN), BOB reflects a deeper integration into the Bitcoin ecosystem and a commitment to genuine, yield-generating BTC applications.
What’s Next for BOB?
BOB exceeded all targets set for Phase 1 of its roadmap, and now it’s time for the next development step. We appreciate the clear, speculative-free narrative used in the project. It allows users to understand what a protocol like BOB can actually do and makes us take the project seriously. Here’s the clear and concise project narrative from their Medium post.
Once the bridge is active and additional protocols are connected, BOB will serve as the centralized network for Bitcoin-native DeFi. Built on top of the STX layer, protocols in BOB’s orbit will be able to tap into Bitcoin’s security and liquidity.
BOB’s recent traction across both the Ethereum and Bitcoin communities leads one to contemplate that it may not just be part of the Bitcoin DeFi conversation, but may instead be leading it.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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