@BitlayerLabs is transforming Bitcoin from just a store of value into a powerful tool for decentralized finance (DeFi). By combining three major innovations—a trust-minimized BitVM Bridge, a yield-generating YBTC token, and a high-speed Bitcoin Rollup—Bitlayer is creating an ecosystem where Bitcoin can be faster, more flexible, and fully usable in DeFi applications.
BitVM Bridge: Moving Bitcoin Securely
The BitVM Bridge is Bitlayer’s way of bringing Bitcoin into its ecosystem safely. Unlike traditional bridges that rely on centralized custodians, BitVM uses smart contracts and fraud-proof technology to ensure every transaction is secure and transparent.
Key Points:
Decentralized Security: No single party controls the process.
Cross-Chain Ready: Works with Ethereum first, with plans for Avalanche, Polygon, and even Solana.
YBTC Creation: Bitcoin transferred through the bridge can be turned into YBTC, Bitlayer’s own yield-bearing Bitcoin token.
YBTC: Earning While Holding Bitcoin
YBTC is a token backed 1:1 by Bitcoin, but it can earn you rewards. It lets Bitcoin holders generate income without selling their coins. This opens doors for lending, staking, and other DeFi applications—all anchored in Bitcoin’s security.
Key Points:
Fully backed by Bitcoin
Generates yield through DeFi activities
Compatible with other ecosystems like Solana, thanks to partnerships with Kamino Finance and Orca
High-Throughput Bitcoin Rollup: Fast and Flexible
Bitcoin is secure, but it’s not the fastest network. Bitlayer solves this with a high-throughput rollup, which speeds up transactions, lowers fees, and allows developers to build complex applications—all while keeping Bitcoin’s security intact.
Key Points:
Supports Ethereum smart contracts (EVM-compatible)
Transactions settle almost instantly
State is periodically anchored back to Bitcoin for maximum security
How Bitlayer Works
Bitlayer uses a two-layer approach:
1. Proof-of-Stake (PoS) Layer: Quickly processes transactions and creates blocks.
2. Rollup Layer: Settles the state back on Bitcoin to preserve security.
This combination makes Bitcoin usable for fast, modern DeFi apps without compromising the network’s trust.
Ecosystem and Partnerships
Bitlayer has already raised 9 million in funding from investors like Polychain Capital. They’ve also partnered with Kamino Finance and Orca to launch YBTC on Solana, allowing users to move Bitcoin trustlessly while earning rewards.
Looking Ahead
Bitlayer plans to fully launch the BitVM Bridge, expand YBTC to more ecosystems, and continue improving its Bitcoin Rollup. The goal is clear: make Bitcoin not just a store of value but a fully functional part of the DeFi world.