Bitlayer, a decentralized finance (DeFi) startup backed by investment giant Franklin Templeton, has launched its BitVM smart contract bridge on the Bitcoin mainnet.
With this launch, Bitlayer enhances Bitcoin’s versatility by enabling connections with other blockchain ecosystems, integrating with Sui, Arbitrum, Base, and Cardano. The bridge allows users to lock native BTC in a smart contract, mint Peg-BTC (YBTC), and use it on chains that support advanced DeFi applications.
Unlike Bitcoin’s base chain, these integrated networks offer programmable smart contract capabilities, opening new avenues for BTC holders to put their assets to work. The demand for yield-generating products has increased among those who now see more options beyond simply holding or trading their coins.
Single Sign-On Security Model Sets Bitlayer Apart
Cross-chain bridges have been under scrutiny due to frequent hacks and costly security breaches. The well-known Wormhole bridge exploit in 2022 resulted in a $321 million loss, highlighting the risks associated with these mechanisms. Bitlayer claims that its BitVM addresses these issues with a minimized-trust design. Instead of a common multisig setup, BitVM uses a single signer, aiming to reduce attack vectors and strengthen oversight.
Bitlayer holds over $384 million locked on-chain, generating more than $1.7 million in fees in June alone. Although the protocol still trails behind BabylonChain’s $5.2 billion TVL, its growth reflects increasing confidence in Bitcoin-focused DeFi innovations.
Do you know what staking is ? Staking on the blockchain refers to the process where participants lock up a certain amount of cryptocurrency to support the operations and security of a blockchain network. In return, they earn rewards, typically in the form of additional cryptocurrency. Staking is often associated with proof-of-stake (PoS) or similar consensus mechanisms used by many blockchains.
