We’re bringing high-yield BTC to Bitlayer!
Umoja Labs and Bitlayer are joining forces to launch $yBTC: the most compliant, low-risk, and highest-yielding Bitcoin liquid staking token on the BitLayer network, which has already surpassed $500 million in TVL since early 2024.
The goal? To enable the highest BTC-yielding L2 in crypto.
BTCFi: The Next Crypto Macrotheme 📌
Over the past year, Bitcoin DeFi (BTCFi) has exploded, with its total value locked (TVL) surging 10x from $96 million to $2 billion.
Despite this, only 10% of Bitcoin’s $1.3 trillion market cap flows into EVM-based DeFi, totaling $100 billion—10x BTCFi’s current TVL.
The takeaway? As dApps secured by Bitcoin's unmatched decentralization emerge, BTCFi is poised for exponential growth.
Lending, decentralized exchange staking, and stablecoin protocols have led BTCFi growth, yet one problem remains: Monetizing Bitcoin is exceptionally hard.
The State of BTC APYs 📈
BTC yields are often scarce and misleading, with inflated APYs promising 40%+ but typically delivering just 1% in BTC, padded by rewards like NFTs or airdrops. Institutions rely on DEX liquidity and leverage, borrowing at 5% to earn up to 9% APY. Quant funds may push yields to 20%, but with high risk and no principal protection. The reality? Safely monetizing Bitcoin without long lock-ups is tough—almost impossible.
BitLayer’s BTC Hyper-Yield Loop ⭕️
To simplify BTC monetization and amplify BTCFi, BitLayer, the first Bitcoin Layer 2 based on Bitcoin finality, is partnering with Umoja to introduce a “BTC Hyper-Yield Loop” to the network.
The flywheel enables BitLayer users to earn the best, BTC-native yields in crypto, leveraging a multilateral partnership of DEXs, lending protocols, and re-staking protocols - all to make your Bitcoin earn more Bitcoin.
The flywheel consists of:
-
Swap WBTC for yBTC: Users may swap wrapped BTC for yBTC on BitLayer to earn BTC yield (5% to 10%).
-
Borrow against yBTC: Users may use their yBTC as collateral for stablecoins, BTC, and other assets. They may then monetize these assets further by on-lending them for more APY.
-
Restake yBTC: Users may restake their yBTC to earn more yield. By doing so, they have additional capital to swap in Step 1!
For institutional liquidity providers, this means earning BTC swap fees and BTC yield in parallel, adding at least 5% APY to your existing BTC monetization strategies (or, for most funds, increasing returns by 50%+).
All on BitLayer. ✨
Stay tuned for more updates. Turn on all your notifications for Umoja Labs and BitLayer.