Bitlayer: Building the First Full-Stack DeFi Ecosystem for Bitcoin

From "Digital Gold" to Comprehensive Financial Class For many years, Bitcoin has been hailed as "digital gold" – a safe, decentralized, and scarce store of value. However, this very image inadvertently limits Bitcoin's scalability in the eyes of developers and investors. While Ethereum and many other platforms are expanding into DeFi, NFTs, and high-speed financial applications, Bitcoin is still mainly viewed as a "sleeping" asset. Bitlayer was created to change that. By combining: BitVM Bridge – A safe BTC bridge that does not require centralized trustYBTC – Yield-generating Bitcoin assetBitcoin Rollups – High-performance scaling infrastructure Bitlayer brings the first full-stack DeFi ecosystem for Bitcoin, expanding functionality while maintaining the core security of the network. The Core Components of Bitlayer

1. BitVM Bridge – Safe Gateway It is a trustless bridge between the Bitcoin mainnet and Layer 2 Bitlayer. Uses fraud proofs verified directly on Bitcoin. Completely eliminates reliance on centralized custodial organizations. Ensures BTC owners never compromise on safety. 👉 Importance: Without a secure bridge, users will not be willing to put BTC into Layer 2.
2. YBTC – Turn Bitcoin Into a Profitable Asset It is an asset pegged 1:1 to BTC, issued when BTC is sent to BitVM Bridge. It can be fully utilized within the entire DeFi ecosystem of Bitlayer. Generate profits through lending, providing liquidity, farming... Always retain the right to exchange back for the original BTC at any time. 👉 Importance: YBTC transforms BTC from a passive asset into a profitable and programmable asset while maintaining the security of Bitcoin.
3. Bitcoin Rollups – Expanding Execution Process thousands of transactions per secondCompress data and send proof to Bitcoin for verificationAllow complex smart contracts to run safely on BitcoinSignificantly reduce transaction fees for users 👉 Importance: Without Rollups, Bitcoin Layer 2 will forever be stuck with a limit of 7 TPS. How It Works in Practice Users deposit BTC into BitVM BridgeMint YBTC on Layer 2 Bitlayer. Use YBTC for: Lending/Borrowing, Trading on DEX, Participating in yield farming, Buying and selling NFTs. Transactions are processed at high speed thanks to Rollups. When wanting to exit, users burn YBTC and withdraw the original BTC. 👉 Result: Security tightly bound to BitcoinSpeed thanks to RollupsLiquidity maintained within the Bitcoin ecosystem Strategic Impact on Bitcoin With a full-stack architecture, Bitlayer allows Bitcoin: Become the center of a dynamic DeFi economy. Retain liquidity flow instead of it flowing to Ethereum and other chains. Provide instant trading, low fees while remaining decentralized. Unlock composability – the factor that once led to the DeFi explosion on Ethereum. A Day with Bitlayer Users Morning: Alice deposited 2 BTC into BitVM Bridge, receiving 2 YBTC in return. Afternoon: Provide 1 YBTC to the DEX pool to receive transaction fees. Lend 0.5 YBTC and receive interest.

Evening: Swap 0.5 YBTC for a BTC-backed stablecoin and use it for online payments.

Weekend: Burn all YBTC to withdraw the original BTC to the wallet. 👉 Everything happens without needing to trust any organization. Why is Bitlayer Different? Previous efforts often failed because of: Dependence on centralized custodians Limitations on programming capabilities Lack of seamless integration between components Bitlayer solves by: Use BitVM to bridge verified by BitcoinCreate YBTC as the native currency on Layer 2Integrate Rollups to meet practical demands Development Roadmap Launch of the BitVM Bridge mainnetDeployment of key DeFi protocols (DEX, lending, stablecoin)Expanding cross-chain interoperability with Ethereum and other RollupsVenturing into the fields of NFT, gaming, and payments using Bitcoin Conclusion: A Complete Financial Class for Bitcoin Bitlayer not only adds a single feature but builds an entire financial stack for Bitcoin: Trustless bridge (BitVM Bridge)Programmable liquidity (YBTC)Global scalability (Rollups) For the first time, Bitcoin can: Secure asset bridging Operating complex DeFi applications Functioning on a global scale 👉 This is the DeFi era of Bitcoin – and Bitlayer is leading the way. @BitlayerLabs #Bitlayer