Bitcoin

Bitlayer Adopts Chainlink CCIP to Power BTC DeFi Across Chains

3 hours ago
Bitcoin Ethereum News

TLDR:

  • Bitlayer migrated its core infrastructure to Chainlink CCIP, securing cross-chain transfers for multiple assets.
  • CCIP adoption now supports Bitlayer’s native token BTR along with USDC, USDT, ETH, and wstETH.
  • YBTC, Bitcoin’s wrapped asset on Bitlayer, is set for cross-chain integration via CCIP soon.
  • Chainlink CCIP enables secure BTC DeFi applications across Ethereum, BSC, Avalanche, and Plume Network.


Bitlayer, a leading Bitcoin layer 2 infrastructure project, has integrated Chainlink’s Cross-Chain Interoperability Protocol. 

The migration establishes CCIP as the canonical cross-chain framework for its ecosystem. This move allows seamless transfers of BTR, USDC, USDT, ETH, and wstETH between Bitlayer and Ethereum. 

Bitlayer plans to extend CCIP support to YBTC, its BTC-pegged token. The adoption is expected to increase liquidity and expand BTC DeFi opportunities across multiple chains.

Chainlink CCIP Powers Bitlayer Cross-Chain Transfers

Bitlayer confirmed in a blog post that CCIP now facilitates secure transfers between Ethereum and Bitlayer’s network. According to the announcement, BTR, USDC, USDT, ETH, and wstETH are already supported. 

The project is preparing YBTC for trust-minimized cross-chain use. Johann Eid, Chief Business Officer at Chainlink Labs, said the integration allows developers to build scalable BTCFi applications.

Currently, YBTC.B, a representation of Bitcoin on multiple EVM-compatible chains, is live on Ethereum, Binance Smart Chain, Avalanche, and Plume Network. Users can access YBTC.B products and yield opportunities across these chains. 

Bitlayer plans to extend CCIP support to additional networks. This step will increase liquidity and create new options for Bitcoin-based DeFi projects.

CCIP’s security relies on Chainlink’s Decentralized Oracle Networks. The system has processed over $25 trillion in on-chain transactions and secured more than $90 billion in DeFi value. Bitlayer developers can rely on this infrastructure for always-on operation and defense-in-depth protection.

The integration enables users to bridge assets using applications like Transporter, XSwap, and Interport. Bitlayer co-founder Kevin He highlighted that CCIP adoption will empower builders to scale BTCFi applications and drive ecosystem growth.

YBTC and BTC DeFi Expansion Through CCIP

Bitlayer’s YBTC token represents a trust-minimized wrapped Bitcoin asset. 

Using BitVM, a Turing-complete smart contract framework, YBTC allows minting BTC for DeFi purposes. CCIP will serve as the backbone for multi-chain deployments of YBTC. This approach aims to make Bitcoin more accessible across Ethereum and other networks.

The YBTC.B token is live and available for cross-chain usage today. Users can deploy YBTC.B-based strategies on several chains and explore new yield products. 

Future expansions are already planned to onboard additional networks. Bitlayer’s blog indicates that trust-minimized minting through the BitVM Bridge will prioritize cross-chain adoption.

CCIP’s architecture allows permissionless token onboarding, future improvements, and integration of new blockchain networks. It provides continuous network growth while maintaining developer control over token contracts. 

Chainlink’s consensus layer ensures secure and reliable transfers for all assets.

Bitlayer’s adoption of CCIP positions it as a key player in Bitcoin DeFi. The project is enabling developers and users to explore cross-chain liquidity and yield strategies without compromising security. 

CCIP integration also lays the foundation for new BTCFi applications across multiple ecosystems.

The post Bitlayer Adopts Chainlink CCIP to Power BTC DeFi Across Chains appeared first on Blockonomi.

Source: https://blockonomi.com/bitlayer-adopts-chainlink-ccip-to-power-btc-defi-across-chains/