What Is Bitlayer (BitVM)?
Bitlayer is an innovative Layer-2 solution for Bitcoin that brings Ethereum-like smart contract capabilities—such as EVM compatibility—onto the Bitcoin network, without changing Bitcoin’s base protocol (binance.com).
By leveraging the BitVM (Bitcoin Virtual Machine) paradigm, Bitlayer enables fully Turing-complete contracts to run securely and in a decentralized manner (bitlayer.org, blockworks.co).
BitVM Bridge: A Trust-Minimized Gateway to DeFi
Mainnet Launch
In mid-July 2025, the Bitlayer BitVM Bridge officially went live on Mainnet, becoming the first active BitVM-based application. It enables trust-minimized Bitcoin bridging to multiple DeFi ecosystems without relying on centralized intermediaries (coindesk.com, crowdfundinsider.com, bitcoinnews.com).
YBTC Token as the DeFi Gateway
When users lock BTC into a BitVM smart contract, they receive YBTC, a token pegged 1:1 to BTC. YBTC can be used across DeFi for staking, lending, trading, and providing liquidity on multi-chain DEX platforms (coindesk.com, crowdfundinsider.com).
Security Mechanism & “Front-and-Reclaim” Model
“front-and-reclaim” model: third-party brokers or liquidity providers can deliver BTC to the user in about one hour, before the full security window (usually seven days) ends (coindesk.com).
Key Feature Description
BitVM Paradigm Turing-complete smart contracts on Bitcoin without a hard fork
BitVM Bridge (Mainnet) Trust-minimized Bitcoin bridge to DeFi
YBTC Token 1:1 BTC-pegged token for DeFi activities
Front-and-Reclaim Model Fast liquidity with short-term security via third-party providers
Multi-Chain Integration Linked with Sui, Base, Starknet, Arbitrum, and more
AWS-Powered High capacity, low cost, TVL over USD 550M
With this highly innovative approach, Bitlayer BitVM Bridge strengthens Bitcoin’s role as a programmable asset within a secure, decentralized, and efficient DeFi ecosystem—making it a strong contender for shaping Bitcoin’s future in multi-chain finance.
