Bitlayer Series (Forty): How to Bring Programmable Financial Tools to Bitcoin
The scripting language of Bitcoin limits its programmability, making it difficult to support complex financial instruments. Bitlayer breaks through this limitation through layer two networks, introducing a variety of programmable financial tools to the Bitcoin ecosystem and expanding its applications in DeFi.
Bitlayer's modular execution layer supports Turing-complete smart contracts, allowing developers to construct derivatives, options, lending protocols, and other financial instruments. These contracts operate efficiently on layer two and are regularly settled to the Bitcoin main chain through the Rollup mechanism, ensuring security. The BitVM protocol further guarantees the correctness of state transitions.
YBTC, as a yield-bearing asset, provides flexible collateral and yield mechanisms for financial tools. Users can participate in decentralized lending, yield farming, or synthetic asset trading through YBTC. The cross-chain bridging feature enables these financial tools to interact with other blockchains, enhancing Bitcoin's ecosystem compatibility.
Bitlayer's community governance and developer incentive mechanism drive innovation in financial tools. Developers can earn BTR rewards through proposals to accelerate the development of new tools. In the future, Bitlayer will bring richer financial scenarios to Bitcoin, helping it become a core asset in DeFi.
