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Introducing YBTC

YBTC is a trust-minimized bridged Bitcoin engineered for maximum security, serving as the core asset in Bitlayer's Bitcoin DeFi roadmap.

  • Trust-Minimized Minting: YBTC can only be minted through the official Bitlayer BitVM Bridge. This bridge is built on the BitVM2 paradigm, inheriting its trust-minimized properties.
  • Native Multi-Chain Asset: Leveraging the bridge's advanced architecture, YBTC is designed as a multi-chain asset. Support begins with Ethereum and will expand to other blockchains, including:
    • Layer 1s: Cardano, Sui, Plume, Sonic, Solana, and more.
    • Layer 2s: Bitlayer Network, Base, Arbitrum, Starknet, and others.
  • DeFi Ready: As an ERC-20 compliant token, YBTC integrates seamlessly into the vast ecosystem of decentralized applications (DeFi).

YBTC

The Security of YBTC​

YBTC’s design establishes it as one of the most secure bridged Bitcoin assets available. Its integrity is not based on trusting a centralized custodian but on a verifiable, trust-minimized system.

The underlying BTC is locked in a BitVM-style smart contract on the Bitcoin network. The rules for withdrawal are predefined within a pre-signed transaction graph, making the process transparent and predictable. This system is secured by a set of attesters, and thanks to the cryptographic design, collusion to steal the locked BTC is prevented as long as at least one attester remains honest.

This robust mechanism maintains a strict 1:1 peg with BTC. A unit of BTC can only be withdrawn from the smart contract after a corresponding YBTC token has been burned on its respective chain, guaranteeing that every YBTC in circulation is fully backed.

YBTC for Users​

Bitlayer and its partners are building a robust, YBTC-centric yield market. YBTC holders can participate in a variety of DeFi applications to generate returns on their Bitcoin:

  • Lending: Use YBTC as collateral in lending protocols to borrow assets or earn interest.
  • Decentralized Exchanges (DEXs): Provide liquidity or trade YBTC efficiently across decentralized markets.
  • Staking: Stake YBTC in supported protocols to earn rewards and contribute to network security.

YBTC for Applications​

YBTC offers significant advantages for developers and protocols building on-chain applications:

  1. Reliable BTC Liquidity: For applications that require dependable BTC liquidity without the counterparty risk or potential for de-pegging, YBTC is the ideal choice.
  2. Multi-Chain Access: By integrating YBTC, applications—especially those operating across multiple chains—can seamlessly tap into deep, multi-chain BTC liquidity from a single, secure asset.

For more information or to connect with our team, join the official Bitlayer Telegram channel: https://t.me/bitlayerofficial