@BitlayerLabs : How Bitcoin Finally Got Its Own DeFi Layer

For years, Bitcoin has been seen as the 'digital gold' of crypto. It is the most secure network, the hardest money, and the backbone of the industry. But there has always been one problem: you can't really do much with it. Unlike Ethereum, where you have lending, staking, trading, and yield farming, Bitcoin has mostly remained on the sidelines — locked up, unproductive.

This is where Bitlayer comes in. Built directly on top of Bitcoin's own security model, Bitlayer aims to open up a new world for BTC holders. The project builds three key pillars:

BitVM Bridge – a trust-minimized bridge that converts Bitcoin into tokens that can be used across various chains.

YBTC – a yield-generating version of Bitcoin, pegged 1:1 with BTC, that can actually generate instead of just sitting idle.

Bitcoin Rollup – a high-speed execution layer where DeFi applications can run, secured by Bitcoin itself.

In simple terms: #bitlayer wants to make Bitcoin not just a store of value, but a working machine for DeFi.

The essence: BitVM Bridge

Traditional Bitcoin bridges are either custodial (you trust a company to hold your BTC) or multisig (you trust a group of people not to collude). Both models work, but they don't really align with the spirit of Bitcoin.

The BitVM Bridge is different. It uses BitVM — an intelligent system that allows Bitcoin to verify off-chain computations through optimistic proofs. That means instead of blindly trusting a custodian, you trust the Bitcoin network itself to catch fraud.

Here’s how it works in simple terms:

You lock your BTC on the Bitcoin blockchain.

The bridge issues your YBTC on the other side (on the Bitlayer rollup or partner chains like Solana and Sui).

If something suspicious happens, anyone can challenge it during the 'optimistic window.'