Bitlayer, Kamino Finance and Orca collaborate to launch YBTC, expanding Bitcoin applications in the Solana ecosystem
Core content of the collaboration and technological support
• Collaborating entities and core product: Bitlayer, Kamino Finance, and Orca have reached a collaboration to introduce YBTC (a token pegged 1:1 to Bitcoin) into the Solana ecosystem.
• Technical architecture: Utilizing the minimal trust architecture of BitVM Bridge to achieve secure, non-custodial Bitcoin DeFi functions, supporting native yield and composability. This breakthrough is supported by optimized smart contract design in the BitVM2 paper.
Technological advantages and comparative highlights
• Support from Solana's performance: This integrates the advantages of Solana's high-throughput blockchain, which according to data from solana.com, can process thousands of transactions per second.
• Changes brought to Bitcoin users: Provides Bitcoin holders with unprecedented transaction speed and scalability, breaking the traditional limitations of Bitcoin in transaction efficiency, challenging the inherent belief that “Bitcoin cannot participate in DeFi without relying on centralized custody.”
Industry trends and project significance
• Aligning with the cross-chain trend: This initiative aligns with the industry trend of cross-chain interoperability by 2025; Bitlayer has previously established collaborations with Ethereum Layer 2 and other blockchains, and this is a continuation of its cross-chain layout.
• Reshaping Bitcoin's role in DeFi: By reducing reliance on intermediaries, it is expected to reshape Bitcoin's role in decentralized finance. On July 16, 2025, this minimal trust framework was launched on the mainnet (according to coindesk.com), providing practical validation for the implementation of this collaboration.
