TL;DR
- Bitlayer and Sui integrated Peg-BTC (YBTC), a token backed 1:1 by BTC, allowing users to interact with Bitcoin in DeFi without losing price exposure.
- The BitVM bridge enables BTC transfers to Sui without intermediaries, ensuring decentralized security and access to staking, lending, and liquidity.
- Over 10% of the total value locked (TVL) in Sui already comes from BTC, and Peg-BTC’s arrival will expand yield generation options.
Bitlayer and Sui have partnered to bring Peg-BTC (YBTC), a token backed 1:1 by Bitcoin, into Sui’s DeFi ecosystem.
This asset allows users to move their BTC through the BitVM bridge and use it in decentralized applications while maintaining full exposure to Bitcoin’s price. The initiative aims to offer more alternatives for those looking to earn yield on their holdings without leaving a secure, Bitcoin-compatible environment.
How Does Peg-BTC Work?
This bridge avoids the involvement of centralized intermediaries and uses off-chain computation combined with on-chain fraud proofs. This mechanism ensures that value transfers between Bitcoin and Sui remain decentralized and protected against any manipulation. Once on the network, Peg-BTC can be used in various DeFi tools such as staking, lending, and providing liquidity on decentralized exchanges.
At the latest Token2049 event in Dubai, several traditional firms, including Franklin Templeton, backed the growing trend of injecting BTC liquidity into DeFi ecosystems, highlighting its potential to expand Bitcoin’s utility beyond passive accumulation as a store of value. Peg-BTC’s arrival on Sui addresses that demand and aims to turn BTC into a functional asset within decentralized markets.
Bitcoin Represents 10% of Sui’s TVL
Currently, over 10% of the total value locked in Sui corresponds to Bitcoin-based assets. Since February, more than 587 BTC have flowed into the network’s protocols. The integration of Peg-BTC is expected to increase that figure while offering new opportunities to earn yield.
With over $2 billion in total value locked and 49 active DeFi projects, Sui is working to build infrastructure that supports various BTC-linked assets. The collaboration with Bitlayer and its BitVM technology is a core component of that strategy
