Although Bitcoin's market capitalization and liquidity are unmatched, the lack of DeFi infrastructure has kept it lagging on the application level. Bitlayer's mission is to fill this missing piece of the puzzle.
Bitlayer approaches this from three main directions: BitVM cross-chain bridge, yield-bearing asset YBTC, and high-throughput aggregation. The cross-chain bridge solves the problem of asset mobility, allowing BTC to safely and seamlessly enter broader application scenarios; YBTC brings a yield model to Bitcoin, transforming it from merely a 'dormant collateral' into a financial instrument that can generate cash flow; and the aggregation layer provides performance support for scalable applications in the Bitcoin ecosystem. Together, these three components form a complete picture of Bitcoin's DeFi infrastructure.
On a deeper logical level, the significance of Bitlayer lies in 'allowing Bitcoin to truly grow applications.' In the past, BTC was often used as collateral introduced to Ethereum DeFi, such as WBTC. However, this model not only has a high degree of centralization but also allows the application benefits of BTC to overflow to other chains. The design of Bitlayer enables the value of Bitcoin to remain within its native ecosystem and be released through DeFi forms. This is not only beneficial for developers but also empowers Bitcoin holders in the long term.
As Bitlayer completes the infrastructure, applications such as DEX, lending protocols, stablecoins, NFTs, and derivatives markets will gradually come to fruition. The Bitcoin ecosystem will no longer be just a singular 'payment and settlement layer' but will gradually evolve into a self-consistent financial system. In this puzzle, the role of Bitlayer is not just as a builder but also as a promoter.
