Bitlayer is a Layer-2 protocol built on Bitcoin, designed to unlock Bitcoin's programmability while maintaining its security features. It leverages a series of technological innovations to transform Bitcoin from 'digital gold' into a dynamic asset that can participate in financial activities such as DeFi.
Bitlayer's ecosystem has already supported several practical applications, primarily including:
* Lending platforms: Users can deposit YBTC into lending pools to earn interest, while borrowers can also use YBTC as collateral to borrow other assets.
Decentralized exchanges (DEX): Supports quick exchanges between YBTC and other assets (such as stablecoins).
Cross-border payments: By converting BTC to YBTC and then to stablecoins, it can be used for low-cost, fast cross-border settlements.
Liquidity mining and yield farming: Users earn trading fee dividends or protocol rewards by staking YBTC and other assets.
Bitlayer's YBTC has also expanded to other blockchain ecosystems**, such as Solana. Through partnerships with protocols like Kamino Finance and Orca, users can use YBTC for yield farming and low-slippage trading on Solana.
