Bitcoin-Backed Token YBTC Launches on Sui Through Bitlayer Integration
Bitlayer and Sui blockchain have partnered to enhance the utility of Bitcoin (BTC) within the Sui ecosystem. Key points include:
- Sui integrates Bitlayer’s BitVM bridge to launch Peg-BTC (YBTC), a Bitcoin-backed token.
- This allows BTC holders to transfer their bitcoin into Sui and use Peg-BTC in its DeFi ecosystem for earning yields.
- Charlie Hu from Bitlayer highlighted that Peg-BTC empowers users to earn yield while maintaining exposure to BTC's value.
- The concept of BitcoinFi was discussed at Token2049, indicating growing interest in BTC's utility beyond being a store of value.
- Bitlayer provides smart contract capabilities for Bitcoin through off-chain computation and on-chain fraud proofs.
- Sui aims for high-speed, low-cost transactions and currently hosts 49 DeFi projects with over $2 billion in crypto deposits.
- Peg-BTC will enable staking, lending, borrowing, and trading on decentralized exchanges within Sui.
- As of now, BTC assets account for over 10% of the total value locked (TVL) in Sui, with over 587 BTC entering DeFi since February.
This collaboration signifies a shift towards integrating Bitcoin into broader DeFi applications, enhancing its usability and appeal.