Bitlayer is a project that brings trust-minimized smart-contract style functionality to Bitcoin via the BitVM paradigm: it runs a bridge and (planned) Bitcoin-anchored rollup infrastructure so BTC can be used natively in DeFi without custodial intermediaries.  
The core idea: why Bitlayer exists
Bitcoin is secure and battle-tested, but it’s limited for complex on-chain apps. Bitlayer’s mission is to combine Bitcoin’s security with the programmability of modern blockchains so people can: move BTC into DeFi, use BTC as collateral, pay gas with BTC variants, and run fast L2 apps anchored to Bitcoin finality. The project does this in two linked layers: (1) BitVM Bridge (move BTC into DeFi in a trust-minimized way) and (2) Bitlayer Network (rollup) — the longer-term scaling/execution layer.  
BitVM Bridge — how it works, in plain steps
1. Peg-in: A user locks real BTC into a BitVM smart contract on Bitcoin.
2. Mint: The protocol (via a broker mechanism) mints an equivalent token (YBTC or a YBTC variant) on the target chain so the user can use it in DeFi.
3. Peg-out: To redeem BTC, the user burns the YBTC on the rollup/target chain and the bridge releases the original BTC (or a broker fronts it and later reclaims it through an optimistic reclaim process).
4. Challenge/Resolve (assert vs disprove): The bridge uses an optimistic, challengeable model—if someone asserts a wrong state, watchers can submit a disproof; slashing/penalties apply to malicious actors. This keeps the bridge “trust-minimized” rather than custodial. The docs walk through the exact sequences and on-chain message formats.  
YBTC family — what tokens exist and what they do
Bitlayer treats “BTC on L2” as a family of assets rather than a single wrapped token:
• Native Bitlayer BTC (protocol currency) — a first-class BTC-pegged system currency at the rollup/protocol level (acts like ETH on Ethereum).
• YBTC.B and other wrapped variants — cross-chain friendly wrapped versions built to work across EVM and non-EVM chains, CCIP/bridge friendly, optimized for liquidity and DEX interactions. Different YBTC variants are designed for different UX / composability needs (gas usage, cross-chain swaps, DEX liquidity). The docs explain YBTC.B as the cross-chain standard. 
The “NST” problem and why mining pools matter
BitVM’s challenge mechanics require Bitcoin to accept certain non-standard transactions (NSTs) such as assert/disprove operations. Historically, those NSTs weren’t reliably relayed or mined. Bitlayer solved that operational gap by partnering with large mining pools — Antpool, F2Pool, SpiderPool — that agreed to accept and include NSTs, enabling real-world dispute resolution on Bitcoin mainnet. Those pools together represent a significant chunk of hash power (public coverage cites ~36% by the three pools combined), which makes practical deployment possible. That miner cooperation is a real, practical breakthrough for BitVM-style bridges.   
Mainnet status & live milestone (what happened recently)
Bitlayer launched its BitVM Bridge Mainnet Beta in mid–July 2025 (announced during its Summer Launch series). The bridge is the first live application built on the BitVM paradigm; Bitlayer followed that with developer docs, user guides, and a monthly operations report showing adoption metrics. The team is now running coordinated campaigns, token events, and chain integrations as part of the roll-out. 
Multichain integrations — where you can use YBTC today
Bitlayer has integrated (or announced integrations) with a broad set of chains and L2s so YBTC liquidity can move across ecosystems: Base, Arbitrum, Sui, Starknet, Sonic, Plume Network, Cardano, Sundial, and more. The design is explicitly multichain: mint YBTC on one chain and use it in composable DeFi across many others. This lowers friction for BTC liquidity to flow into places it previously could not. 
Bitlayer Network (V2/V3) — architecture, sequencing, finality (technical but approachable)
• V2 (rollup stage): Bitlayer’s V2 is a Bitcoin-native rollup design that batches L2 transactions, posts proofs or commitments to Bitcoin for settlement, and uses a hybrid of proof systems (fraud proofs + selective zk elements) to keep throughput high while anchoring finality to Bitcoin blocks. V2 includes a PoS-based fast sequencer layer (validators/sequencers propose blocks quickly) but anchors finality to Bitcoin to preserve trust assumptions. 
• V3 (performance stage): The team has previewed V3 concepts focused on parallel execution, ultra-low latency, and horizontal scalability (the goal: throughput comparable to centralized exchanges while remaining decentralized). V3 is still research/roadmap at present, with architecture sketches covered in the summer launch materials. 
Security, audits, and rollout hygiene (how they’re being careful)
Bitlayer has emphasized a security-first rollout: mainnet beta launches were accompanied by plans for independent audits, bug bounty programs, community beta events, open-sourcing of core components, and a security committee to vet protocol changes and monitor network health. Those are standard best practices and Bitlayer is publicly committing to them as the network grows. 
Funding, investors, and what that means for the project
Bitlayer completed extension rounds led by institutional names: Polychain Capital and Franklin Templeton were among lead investors in a Series A extension (announced late 2024), and public coverage states Bitlayer’s total funding has reached about $25M to date including that extension. Institutional backing provides runway for engineering and ecosystem incentives, and signals some conventional-finance interest in Bitcoin becoming programmable. (Note: check each fund’s announcement for exact amounts/round structure if you need investment-level detail.)   
Token mechanics & early distribution (BTR, Booster, Pre-TGE, CoinList)
• Booster Campaign (Binance Wallet): Bitlayer partnered with Binance Wallet on a Booster campaign (launched July 24, 2025) that distributes 30,000,000 BTR tokens as task rewards — that’s described as 3% of total supply — across phases; Phase 2 had a live window and task sets. Eligibility details are on Binance Wallet pages (e.g., Alpha Points ≥61).  
• Pre-TGE / Token Sale: Bitlayer also ran a Pre-TGE and later token sale events (CoinList sale windows, partner platform sales). Token allocation details, vesting, and lockups are published in the project’s token docs and partner pages; read those before participation. 
Real user flows — how a new user mints YBTC and uses it (step-by-step)
1. Get a BTC wallet and some BTC.
2. Visit the BitVM Bridge UI / docs and follow the peg-in UX to lock BTC on Bitcoin mainnet (the UI and docs show required confirmations and challenge windows).  
3. Mint YBTC on the chosen target chain (you’ll see a YBTC or YBTC.B token in your wallet).
4. Use YBTC in DEXes, lending protocols, or liquidity pools on the integrated chain.
5. Peg-out when you want to reclaim BTC — initiate burn/redeem and follow
