Bitcoin has long suffered from its image as a "store of value only" – a store of value without real financial functions. However, the Bitlayer project flipped the equation, relying on revolutionary technologies like BitVM to transform Bitcoin from digital gold into an effective financial asset.
Thanks to this approach, the project has not only attracted top-tier funding of $25 million but has also ignited the dormant Bitcoin DeFi (BTCFi) market for years.
1. Breaking Bitcoin's financial constraints
Despite Bitcoin's market value surpassing $1.3 trillion, it is still confined to the role of "store of value". Traditional options for investing it have been either centralized platforms (which the FTX disaster taught us about the risks), or the WBTC version subject to 21 centralized custodial nodes.
Here comes Bitlayer's solution:
BitVM Bridge: Allows conversion of BTC to YBTC without leaving the main network, and without institutional intermediaries.
Complete user control: Even if the bridge fails, they can retrieve their Bitcoins through their private keys.
Direct access to DeFi: YBTC can be used for lending or providing liquidity on protocols like Aave with an annual yield ranging from 5–8%.
📊 After 3 months of launch:
Over 20,000 BTC have crossed to YBTC (equivalent to $8 billion).
Bitcoin's participation in DeFi has risen from 3% to 7%.
2. Techniques that make Bitcoin outperform Ethereum
Bitlayer's ambition is not limited to transferring liquidity between chains but building a "financial operating system" for Bitcoin.
A. BitVM Bridge – A secure alternative to WBTC
Challenge mechanism ensures security: Any malicious node detected within 24 hours is confiscated.
Speed and low cost: Transfers via Base take only 3 minutes with a fee of 0.001 BTC (80% less than WBTC).
B. Bitlayer Network – High-Speed Rollup
Processing up to 3000 TPS with final results recorded on the Bitcoin network.
EVM compatibility allows developers to directly copy Ethereum protocols.
Example: Uniswap's migration to Bitlayer increased the trading volume of the YBTC-USDC pair to $50 million daily.
3. Unprecedented ecological expansion
Bitlayer partners include major players:
Public chains: such as Base, Sui, and Cardano. The value of YBTC on Base surpassed $120 million.
DeFi: Aave launched a dedicated market for YBTC with a collateral rate of up to 85%.
Mining: Support from Antpool and F2Pool, with additional gains for miners of up to 15%.
Financial institutions: Franklin Templeton invested $25 million and plans to experiment linking pensions to BTCFi worth $100 million.
4. BTR Token – Ecosystem Fuel
BTR Token is not just a currency, but a ticket to participate in the future of Bitcoin DeFi:
Burn mechanism: 30% of network fees are used to repurchase and destroy BTR (500,000 have been burned so far).
Staking = Passive Income: Rewards up to 15% with governance voting rights.
Strong Airdrop: "Booster" events with the Binance wallet reward YBTC and BTR holders.
5. Risks and Opportunities
Challenges: BitVM is still an emerging technology, competition with WBTC continues, and regulatory constraints may become stricter.
Opportunities: If Bitcoin's participation in DeFi rises to 20%, this is a potential market worth $260 billion. Bitlayer could become the infrastructure for this shift, with a market value estimated in the tens of billions.
Summary: A new financial revolution for Bitcoin
Bitlayer does not bring a superficial update to Bitcoin, but completely replaces its financial engine. When Bitcoin's massive capital ($1.3 trillion) starts to earn profits, lend, and hedge securely within DeFi, this will be just the beginning of a new era for BTCFi.
🚀 Bitlayer is not just a project opportunity, but a historic chance to transform Bitcoin from digital gold into a global financial asset.