Bitlayer, a bitcoin Layer 2 primarily based on the BitVM paradigm, and Sui blockchain have teamed as much as make bitcoin (BTC) extra helpful within the Sui ecosystem.
The collaboration entails Sui integrating Bitlayer’s BitVM bridge to launch Peg-BTC (YBTC), a Bitcoin-backed token, on its platform, based on an unique announcement shared with CoinDesk.
It permits bitcoin holders to switch their BTC into Sui through the BitVM bridge. The bridged model, Peg-BTC, can then be used inside Sui’s DeFi ecosystem to earn further yields.
“Bitcoin’s dominance as a retailer of worth is unmatched, however its utility in DeFi stays untapped. By integrating Bitcoin’s liquidity into Sui’s ecosystem, Peg-BTC (YBTC) empowers customers to earn yield whereas sustaining direct publicity to BTC’s worth—a paradigm shift for BTCFi,” Charlie Hu, co-founder of Bitlayer, stated in a press launch shared completely with CoinDesk.
BitcoinFi, or permitting BTC customers to earn further yields by means of DeFi, was one of many hottest matters on the Token2049 convention in Dubai. Franklin Templeton backed the thought on the occasion, saying it would enhance BTC’s enchantment past the long-prevalent retailer of worth story.
Bitlayer is the Bitcoin-security equal Layer 2 constructed on the BitVM paradigm to convey good contract capabilities to bitcoin with out influencing its core consensus. It depends on off-chain computation and on-chain fraud proofs to maintain the community safe and decentralized.
Bitlayer’s BitVM-powered zk bridge is a particular device that facilitates protected and safe motion of BTC onto totally different blockchain ecosystems with out counting on centralized intermediaries or middlemen. It’s trust-minimized, that means it’s designed to be very safe and decentralized.
Sui is a Layer 1 blockchain specializing in providing high-speed and low-cost transactions by means of parallel processing. As of writing, its DeFi ecosystem comprised 49 tasks, boasting over $2 billion in crypto deposits, per information supply DeFiLlama.
Integrating Peg-BTC (YBTC) into the Sui ecosystem opens up a number of new alternatives for customers, like staking Peg-BTC to earn curiosity by means of numerous Bitcoin staking protocols. Customers may also lend or borrow Peg-BTC by lending it out to earn yields or utilizing it as collateral for loans. Moreover, Peg-BTC will be traded on well-liked decentralized exchanges inside Sui, permitting customers to swap and supply liquidity to earn buying and selling charges.
Hu stated they plan to work with Sui’s prime protocols, with the largest traction when it comes to whole worth locked, absolutely diluted worth and person base throughout the Sui ecosystem.
Adeniyi Abiodun, Co-Founder and CPO at Mysten Labs, the corporate behind Sui, stated they’re taking a holistic method whereas catering to the rising demand for BitcoinFi.
“Sui is taking a holistic method by onboarding a full stack of infrastructure and BTCfi asset choices into the ecosystem, together with staking, restaking, bridge integrations, WBTC, sBTC, and shortly Peg-BTC (YBTC). Demand is rising for Bitcoin to serve a better goal past merely being held,” Abiodun instructed CoinDesk.
“Key integrations, such because the BitVM bridge with Bitlayer, are reworking the expertise for Bitcoin holders by enabling them to earn, have interaction with DeFi, and put their property to work on Sui,” Abiodun added.
As of as we speak, BTC property comprise over 10% of the overall TVL locked within the Sui ecosystem, with over 587 BTC flowing into DeFi since February. “With assist for main BTCfi integrations, Sui’s superior programmability prompts Bitcoin’s utility, enabling customers to maneuver past holding and right into a safe, high-performance chain,” Abiodun famous.