$BTC Bitcoin is evolving—and it's no longer just a “store of value.” At Token2049 in Dubai, one of the hottest topics was BitcoinFi: allowing Bitcoin holders to earn yields through decentralized finance. Backed by major players like Franklin Templeton, the concept is gaining serious traction—and new tech developments are making it possible.
One of the key innovations enabling BitcoinFi is Bitlayer, a Bitcoin-secured Layer 2 built on the BitVM paradigm. BitVM enables smart contracts for Bitcoin without modifying its base-layer consensus. It achieves this through a clever architecture using off-chain computation and on-chain fraud proofs, keeping the system decentralized and secure.
A game-changer in this stack is Bitlayer’s BitVM-powered zk bridge—a trust-minimized, secure way to move BTC across blockchain ecosystems. Unlike centralized bridges that rely on intermediaries, Bitlayer’s bridge keeps BTC transfers decentralized and censorship-resistant. This is key to bringing Bitcoin safely into the wider world of DeFi.
🔗 Enter Sui: A High-Performance Playground for BTCFi
On the receiving end of this BTC expansion is Sui, a fast, scalable Layer 1 blockchain developed by Mysten Labs. Known for its low-cost, high-throughput architecture using parallel processing, Sui has become a magnet for DeFi projects. As of now, the Sui ecosystem features 49 DeFi protocols with over $2 billion in total crypto deposits, according to DeFiLlama.
Now, Sui is integrating Peg-BTC (YBTC)—a pegged version of Bitcoin—into its ecosystem, opening up a whole new range of yield-generating opportunities. With Peg-BTC, users will be able to:
✅ Stake YBTC to earn interest via Bitcoin staking protocols
✅ Lend or borrow YBTC through DeFi money markets
✅ Trade and provide liquidity on Sui-based decentralized exchanges (DEXs)
It’s a powerful move for Bitcoin holders who want their BTC to do more than just sit in a wallet.