If you hold Bitcoin long-term, now is a crucial moment that cannot be ignored. Institutions and publicly listed companies are formally incorporating BTC into their asset allocation, and the demand from holders for 'earning without sacrificing security' is rising rapidly. For me, this is a typical personal asset management lesson: understanding risks, measuring costs, and using the right tools to improve efficiency. On BTCFi's product roadmap, #Bitlayer is making this pathway executable, verifiable, and scalable.

@BitlayerLabs

Why now: the cash flow logic of BTCFi

  • Adoption curve is rising: traditional financial institutions and publicly listed companies are accelerating their allocation of BTC, with demand shifting from merely 'store of value' to cash flow-generating assets.

  • Inflexible demand from holders: most holders wish to 'retain BTC exposure' while earning on-chain yields. This pathway requires robust bridging and an efficient execution environment.

  • Bitlayer's entry point: connecting the **most secure L1 (Bitcoin) with real-time experience L2 (Real-time EVM)**, allowing assets to 'move' without sacrificing ultimate security.

Product positioning: two core engines addressing two pain points

1) BitVM Bridge (bringing BTC into DeFi)

Next-generation, trust-minimized BTC bridging solution: lock BTC on L1 and mint YBTC (1:1 BTC backed) on L2 through a challengeable/verifiable mechanism. The significance for investors is direct: retain BTC price exposure while gaining cash flow tools such as market-making, lending, and yield aggregation.

2) Bitlayer Network (making DeFi truly usable)

Bitcoin Rollup based on BitVM stack + Real-time EVM: transactions run at high speed on L2, batches and proofs are written back to Bitcoin for hard finality. This is an engineered answer of 'low cost × high throughput × scalability,' making strategies usable in daily practice rather than just staying in white papers.

Industry position and expansion speed: not just concepts, but implementation

  • Leading BitVM Bridge: as one of the earliest bridges based on BitVM that is already on the mainnet, YBTC has become one of the main channels for BTC → DeFi.

  • Ecological expansion: establishing collaborations with multiple mainstream public chains (Sui, Base, Arbitrum, Cardano), while teaming up with mainstream mining pools (Antpool, F2Pool, SpiderPool) to connect liquidity and infrastructure at both ends.

  • Capital endorsement: completed $25 million in institutional financing, with investors including Polychain Capital, Franklin Templeton, Framework Ventures, ABCDE, etc. The long-term perspective of capital often means that products will continue to be refined rather than being a fleeting moment.

Pragmatic checklist for investors

Step 1 | Understand your 'risk-return' curve

  • Source of income: market-making fees, borrowing interest, incentives (varies by agreement).

  • Core risks: bridging/contract/data availability (DA) and liquidation logic.

  • Fundamentals: small initial investments, batch bridging, only use official entrances, reserve exit paths.

Step 2 | Calculate the costs clearly

  • Your actual annualized return ≈ (market-making/lending/incentives) - (bridging + gas + slippage + possible liquidation costs).

  • Get into the habit of bookkeeping: deposits / costs / net worth / annualized assumptions, review weekly, and adjust positions as necessary.

Step 3 | Simplify your strategy

  • Conservative strategy: YBTC deposits earning interest, first familiarize with the exit process and authorization management.

  • Balanced strategy: YBTC × stablecoin market-making, controlling impermanent loss, setting profit-taking/loss-cutting rules.

  • Aggressive strategy: YBTC collateralized stablecoin portfolio strategy; be sure to set leverage limits and alerts.

How does the security model truly provide a bottom line?

  • L1 finality: all L2 state transitions ultimately return to Bitcoin for validation, which is an immutable hard finality.

  • Challenge/verifiable mechanism: any suspicious batch can be challenged with fraud proofs, entering the challenge process, rolling back errors and punishing malicious parties.

  • Data availability (DA): batch data is publicly available, you can use it when facing scrutinyMandatory transactionsbypass single points, maintain verifiability.

    Key point: daily experience on L2, real bottom line on L1—Efficiency and security are not a choice between two.

Possible 'wild card yields': Booster (Phase 2) and Pre-TGE

Bitlayer and Binance Wallet are conducting Booster phase two activities; at the same time, Pre-TGE is about to start. If you are already doing research and creation, participating in tasks to earn BTR token rewards is another way to turn knowledge into assets. Remember to read the official rules to confirm qualifications and verification processes.