1 month ago
Bitlayer, a bitcoin Layer 2 based connected the BitVM paradigm, and Sui blockchain person teamed up to marque bitcoin (BTC) much utile successful the Sui ecosystem.
The collaboration involves Sui integrating Bitlayer’s BitVM bridge to motorboat Peg-BTC (YBTC), a Bitcoin-backed token, connected its platform, according to an exclusive announcement shared with CoinDesk.
It allows bitcoin holders to transportation their BTC into Sui via the BitVM bridge. The bridged version, Peg-BTC, tin past beryllium utilized wrong Sui’s DeFi ecosystem to gain further yields.
"Bitcoin’s dominance arsenic a store of worth is unmatched, but its inferior successful DeFi remains untapped. By integrating Bitcoin’s liquidity into Sui’s ecosystem, Peg-BTC (YBTC) empowers users to gain output portion maintaining nonstop vulnerability to BTC’s value—a paradigm displacement for BTCFi,” Charlie Hu, co-founder of Bitlayer, said successful a property merchandise shared exclusively with CoinDesk.
BitcoinFi, oregon allowing BTC users to gain further yields done DeFi, was 1 of the hottest topics astatine the Token2049 league successful Dubai. Franklin Templeton backed the idea astatine the event, saying it volition boost BTC's entreaty beyond the long-prevalent store of worth story.
Bitlayer is the Bitcoin-security equivalent Layer 2 built connected the BitVM paradigm to bring astute declaration capabilities to bitcoin without influencing its halfway consensus. It relies connected off-chain computation and on-chain fraud proofs to support the web unafraid and decentralized.
Bitlayer's BitVM-powered zk span is simply a peculiar instrumentality that facilitates harmless and unafraid question of BTC onto antithetic blockchain ecosystems without relying connected centralized intermediaries oregon middlemen. It’s trust-minimized, meaning it’s designed to beryllium precise unafraid and decentralized.
Sui is simply a Layer 1 blockchain focusing connected offering high-speed and low-cost transactions done parallel processing. As of writing, its DeFi ecosystem comprised 49 projects, boasting implicit $2 cardinal successful crypto deposits, per information root DeFiLlama.
Integrating Peg-BTC (YBTC) into the Sui ecosystem opens up respective caller opportunities for users, similar staking Peg-BTC to gain involvement done assorted Bitcoin staking protocols. Users tin besides lend oregon get Peg-BTC by lending it retired to gain yields oregon utilizing it arsenic collateral for loans. Additionally, Peg-BTC tin beryllium traded connected fashionable decentralized exchanges wrong Sui, allowing users to swap and supply liquidity to gain trading fees.
Hu said they program to enactment with Sui's apical protocols, with the biggest traction successful presumption of full worth locked, afloat diluted worth and idiosyncratic basal wrong the Sui ecosystem.
Adeniyi Abiodun, Co-Founder and CPO astatine Mysten Labs, the institution down Sui, said they are taking a holistic attack portion catering to the increasing request for BitcoinFi.
"Sui is taking a holistic attack by onboarding a afloat stack of infrastructure and BTCfi plus options into the ecosystem, including staking, restaking, span integrations, WBTC, sBTC, and soon Peg-BTC (YBTC). Demand is increasing for Bitcoin to service a greater intent beyond simply being held," Abiodun told CoinDesk.
"Key integrations, specified arsenic the BitVM span with Bitlayer, are transforming the acquisition for Bitcoin holders by enabling them to earn, prosecute with DeFi, and enactment their assets to enactment connected Sui," Abiodun added.
As of today, BTC assets comprise implicit 10% of the full TVL locked successful the Sui ecosystem, with implicit 587 BTC flowing into DeFi since February. "With enactment for starring BTCfi integrations, Sui’s precocious programmability activates Bitcoin’s utility, enabling users to determination beyond holding and into a secure, high-performance chain," Abiodun noted.
English (US) 