On February 26, the hybrid Layer 2 project BOB (Build on Bitcoin) announced the launch of the DeFi yield series product Hybrid BTC, through which it built the industry's first multi-chain BTC yield layer. Through Hybrid BTC, users can deposit their assets into the vault (Vault) on the BOB network, and the vault will automatically deploy the user's deposited assets to DeFi applications on other chains, ultimately returning the yield to the user in the form of BTC. In this entire process, users only need to deposit their assets into Hybrid BTC, without worrying about cross-chain and wallet access issues, just "one-click deposit of assets".
As Bitcoin Finality is expected to be launched on the BOB mainnet in the near future, anyone can pursue Bitcoin yields without compromising on security, further consolidating BOB's position as the "ideal home" for BTC DeFi. The initial partners of Hybrid BTC are the Ordinals-based EVM extension protocol Veda, the DeFi lending protocol Euler, and the Bitcoin liquidity staking platform Lombard.
HybridBTC.pendle vault is the first product in the Hybrid BTC series, jointly created by BOB and Veda, to obtain Bitcoin yields on the Ethereum network (ultimately returned to users in the form of BTC yields). According to the latest data, Veda's current TVL has exceeded $3 billion, and it has played a crucial role in deploying and managing these vaults.
BOB's unique hybrid Layer 2 model means that the blockchains, cross-chain bridges, and all transactions involved in Hybrid BTC will be protected by the security of the Bitcoin network. This provides users with unparalleled security, usability, and Bitcoin consistency, following the core principles of security, decentralization, and trust minimization. The Hybrid BTC vault will also simplify access to different Bitcoin yield sources, allowing users to maximize their Bitcoin yields without navigating different product interfaces or wallets. Additionally, Lombard's LBTC will be used as the base asset for the new vault, providing additional utility to the $1.8 billion TVL of Bitcoin liquidity staking tokens (LST). In the future, BOB will launch more vaults to obtain BTC DeFi yields on Solana, BNB, Base, Move, and Berachain, among others.
Alexei Zamyatin, co-founder of BOB and core contributor to BitVM, said: "As a hybrid Layer 2, BOB is building the first multi-chain yield layer for Bitcoin. Thanks to our unique hybrid Layer 2 model, BOB will become the best place to earn Bitcoin yields, while cross-chaining to other L1/L2 public chains in the most secure way. HybridBTC.pendle is the first yield product in the Hybrid BTC series, which allows ordinary retail investors to earn large-scale yields on the Ethereum network like 'whales', without high Gas fees and without having to manually create and manage these positions."
Zamyatin further added: "Hybrid BTC is a very powerful BTC DeFi tool that positions BOB as the 'home' for L1/L2 public chains to obtain BTC liquidity. Since BOB has the security of the Bitcoin network, other chains only need to check and trust Bitcoin to see that BOB is secure. This is a simple task for every smart contract chain, so the potential impact of Hybrid BTC on the market is enormous."
Sun Raghupathi, co-founder and CEO of Veda, said: "2025 will be the year of BTC DeFi. BOB's hybrid Layer 2 model significantly enhances security and usability in the pursuit of Bitcoin yields. At Veda, we are committed to making DeFi seamless and bringing real-world assets onto the chain. Collaborating with an excellent project like BOB allows us to further advance this vision and bring the benefits of DeFi to a wider audience."
Yield Bearing Assets
These cross-chain yield positions on BOB are tokenized as Yield Bearing Assets (YBA), which can be used in DeFi applications on BOB. HybridBTC.pendle has already integrated Euler v2, which has also launched on the BOB network today.
Euler is a flexible decentralized lending platform that can maximize the yield generated by users' positions through HybridBTC.pendle. Euler's permissionless mechanism makes it a powerful tool for DeFi users seeking efficient BTC liquidity management.
To support the dual-helix growth of HybridBTC.pendle and BTC DeFi, BOB has also launched the DeFi initiative BOB Rise, which incentivizes users to share the 750,000 OP tokens BOB received in the 6th season Optimism Grant. BOB Rise aims to enhance BTC liquidity supply while promoting the lending of Bitcoin liquidity staking tokens (LST) and new YBAs.
Michael Bentley, CEO of Euler, said: "With the launch of Euler v2 on the BOB network, we are excited to provide Bitcoin holders a secure way to use their Bitcoin. Users using HybridBTC.pendle as collateral have unlocked new functionalities for leverage and liquidity management. We are proud to be part of the new era of BTC DeFi solutions, working with BOB to take an important step forward in innovating BTC DeFi solutions."
About BOB (Build on Bitcoin)
BOB (Build on Bitcoin) is a hybrid Layer-2 network that combines the advantages of Bitcoin and Ethereum, aiming to become the "home of BTC DeFi". The unique Hybrid L2 model integrates the strengths of the two ecosystems - the security of Bitcoin and the dormant BTC capital, as well as the DeFi innovation and multi-functionality of Ethereum. By positioning BTC as the cornerstone of a new decentralized financial system, BOB can unlock new use cases and trillions of BTC liquidity. BOB perfectly inherits the security of the Bitcoin network through the BitVM protocol and creates trust-minimized bridges between BOB, Bitcoin, Ethereum, and other L1 networks. Therefore, the Hybrid L2 does not rely on third-party cross-chain bridges to achieve interoperability, easily concentrating liquidity around the Bitcoin network instead of dispersing it across multiple chains.
BOB is supported by leading investment institutions such as Castle Island Ventures, Coinbase Ventures, Ledger Cathay Ventures, and IOSG.
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About Veda
Veda is the first native yield layer built for the decentralized finance (DeFi) ecosystem, enabling crypto applications, asset issuers, and protocols to build consumer-grade cross-chain yield products. Veda's technology powers several mainstream DeFi vault products, including ether.fi Liquid, Lombard DeFi Vault, and Mantle cmETH. Over 100,000 users have trusted and used Veda, with the platform currently holding around $3 billion in assets.
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About Euler
Euler is a decentralized, permissionless lending protocol that allows users to earn interest on their crypto assets or hedge against volatile markets without the need for a trusted third party. Developers can create and manage markets in their own way, while benefiting from institutional-grade security. For more information, please visit euler.finance.
