Key Highlights:
- Bitlayer has collaborated with Sui to introduce Peg-BTC, a Bitcoin-backed token, to the Sui-based DeFi ecosystem.
- This integration, enabled by the BitVM bridge, allows Bitcoin holders to earn yields using Peg-BTC.
- With this move, Bitcoin’s functionality expands beyond just being a store of value.
Overview
Bitlayer, a Layer 2 solution for Bitcoin built on the BitVM concept, has joined forces with Sui blockchain to enhance the usability of Bitcoin (BTC) within the Sui ecosystem. This partnership aims to integrate Bitlayer’s BitVM bridge to launch Peg-BTC (YBTC), an innovative Bitcoin-backed token.
This new token facilitates the transition of BTC into Sui, where it can actively earn additional yields within DeFi frameworks. According to Charlie Hu, co-founder of Bitlayer, “Bitcoin’s dominance as a store of value is unmatched, but its utility in DeFi remains untapped. By integrating Bitcoin’s liquidity into Sui’s ecosystem, Peg-BTC (YBTC) empowers users to earn yield while maintaining direct exposure to BTC’s value—a paradigm shift for BTCFi.”
This concept of BitcoinFi received significant attention at the Token2049 conference in Dubai, with advocates like Franklin Templeton supporting increased utility for Bitcoin beyond its traditional function.
Bitlayer’s technology allows for secure movement of BTC across various blockchain ecosystems without the need for centralized intermediaries. Sui aims to provide faster and more cost-effective transactions, currently hosting 49 DeFi projects with over $2 billion in crypto deposits.
Future Prospects
Integrating Peg-BTC (YBTC) within Sui opens a range of opportunities for users, including staking for interest, borrowing, and trading on decentralized exchanges. Adeniyi Abiodun, Co-Founder and CPO at Mysten Labs, indicated that Sui is adopting a comprehensive strategy to meet the rising demand for BitcoinFi with various integrations on its platform.
As of now, Bitcoin assets represent over 10% of the total value locked (TVL) in the Sui ecosystem, underscoring the significant momentum generated since February.
