Skip to main content

What is the YBTC.B Vault?

The YBTC.B Vault is an on-chain yield strategy container designed around YBTC.B, a cross-chain wrapped version of native BTC on Bitlayer. It allows users to deposit their YBTC.B assets into structured Vault products and earn yield denominated in BTC — either through on-chain DeFi mechanisms or through off-chain yield-enhancing strategies.

Purpose and Design​

The Vault is a core component of Bitlayer’s BTC yield product suite. It is engineered to serve diverse user profiles by offering two primary types of strategies:

  • DeFi Vaults: On-chain, automated strategies utilizing lending, AMMs, and LP incentives across multiple public blockchains.
  • CeDeFi Vaults: Hybrid strategies combining centralized and decentralized finance elements, primarily involving delta-neutral hedging, arbitrage, and structured note participation managed by trusted partners.

By depositing YBTC.B into the Vault, users gain passive BTC-denominated income without needing to sell, wrap, or transfer their BTC assets into other volatile tokens — thereby preserving BTC exposure while gaining yield.

Multi-chain Compatibility​

The YBTC.B Vaults are designed for multi-chain deployment, with current and upcoming integrations on:

  • Sui (Move-based high-throughput chain)
  • Avalanche (EVM-compatible L1)
  • Plume (RWA-focused L1)
  • Starknet (ZK-rollup Layer 2 on Ethereum)

This design enables users to engage with BTC-native DeFi strategies across ecosystems — greatly expanding the utility of BTC in decentralized finance.

How It Works​

Users deposit YBTC.B into a Vault smart contract. The protocol, or a designated strategy partner, then allocates these assets into specific strategies based on the Vault type:

  • On-chain DeFi strategies: yield farming, lending spreads, AMM-based LP rewards
  • Off-chain CeFi strategies: basis trading, delta-neutral hedging, structured debt products

The system tracks user ownership and earnings via proof tokens, which represent a proportional share of the Vault’s assets and returns.

Supported Assets​

  • The Vault accepts deposits in either Bitlayer Native BTC or YBTC.B (its cross-chain wrapped form).