YBTC explained: the “BTC” you can use in DeFi

YBTC is Bitlayer’s family name for BTC representations minted via the BitVM Bridge. The idea is not to create another opaque wrapped token; instead YBTC is designed to be verifiably 1:1 backed by BTC locked through the BitVM contract flows. Different YBTC variants (chain-specific wrapped forms) exist to make cross-chain UX and liquidity efficient, but the main point is: YBTC should be as close to native BTC security as possible while being usable across DeFi. 

Once minted, YBTC can be used as gas, collateral, or liquidity on integrated chains and on Bitlayer’s own rollup. Because all minting and burns go through challengeable on-chain message flows anchored in Bitcoin, users get auditable backing — a major competitive advantage versus custodial wrapped BTC solutions. Over time the ecosystem intends to add yield strategies that let BTC holders earn institutional-grade yields while minimizing custodial counterparty exposure. 

Practically: if you’re a BTC holder, YBTC opens the door to lending, automated market-making, on-chain yield vaults, and even liquid-staking derivatives — all without leaving the Bitcoin security model in the dust. That’s the practical benefit Bitlayer is selling.

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