The developers behind BOB, a project based on Bitcoin, released a new "vision paper" detailing a design for a hybrid layer-2 network which they believe could help establish Bitcoin as a new cornerstone for decentralized finance (DeFi).

DeFi is often associated with newer blockchains like Ethereum and Solana. However, BOB positions Bitcoin at the center of the cryptocurrency ecosystem, making the case for its inclusion in DeFi efforts.

"If Bitcoin fails, the entire industry is at risk, so leveraging Bitcoin’s security for cross-chain DeFi seems logical," stated BOB co-founder Alexei Zamyatin in a Telegram message.

The BOB project aims to create a layer-2 network that is compatible with smart contracts from Ethereum, making it a "hybrid" solution. This network intends to facilitate trust-minimized connections between itself and popular layer-1 blockchains like Ethereum, thereby anchoring Bitcoin at the core of DeFi activities, enhancing its liquidity and security through its impressive market capitalization.

According to the vision paper, BOB will allow users to deposit various assets from multiple chains into its network, optimizing the use of Bitcoin’s liquidity without having to wrap it into other chains. As fees from BOB transactions will contribute to Bitcoin's security budget, the project fundamentally connects Bitcoin’s roaming power to the DeFi ecosystem.

Overall, the BOB initiative is seen as a pivotal shift in how Bitcoin can be leveraged within the decentralized finance landscape.