The impact of @BitlayerLabs $BTR to DeFi liquidity on Bitcoin
For many years, Bitcoin has been seen as the safest store of value asset but lacks the infrastructure to participate in DeFi activities like Ethereum.
The emergence of @BitlayerLabs Bitlayer – an EVM-compatible layer – has changed this landscape, transforming Bitcoin from a passive asset into an active liquidity source in the decentralized finance ecosystem.
First of all, #Bitlayer opens up a cross-chain bridge mechanism, allowing Bitcoin to be used directly in DeFi protocols such as lending, borrowing, yield farming, or AMM (Automated Market Maker).
Users no longer need to rely entirely on wrapped BTC (wBTC) versions on Ethereum, which carry centralized risk. Instead, Bitcoin can become a native collateral asset in the Bitlayer ecosystem, ensuring security while expanding its range of applications.
Secondly, thanks to EVM compatibility, @BitlayerLabs allows for the rapid deployment of popular dApps and DeFi protocols from Ethereum. This means that liquidity from the Ethereum community can flow into the Bitcoin ecosystem, creating a two-way capital flow. Bitcoin not only becomes a 'digital gold' store but also a source of income-generating assets in many complex financial scenarios.
Finally, the most significant impact is the increase in capital efficiency. With Bitlayer, hundreds of billions of USD in idle Bitcoin value can now be activated in DeFi, contributing to overall market liquidity. This not only promotes the development of Bitcoin but also strengthens the position of DeFi in the global financial system.
👉 #Bitlayer therefore is considered the 'key' that opens a new era for DeFi liquidity on the Bitcoin platform.
@BitlayerLabs #Bitlayer
