RBTC Integration with LayerBankFi Incentive Program Analysis
TL;DR
LayerBank launched a two-month $50,000 RBTC incentive program on the Rootstock network on November 17, 2025, targeting deposit and lending activities in RBTC and USDT0. As of December 4, the protocol's TVL reached $1.529 million, a 22.05% increase over the past 7 days, with a positive community response. Users can automatically receive reward distributions through the Merkl mechanism.
Integration Overview
Core Functions
LayerBank has deployed a complete lending marketplace on the Rootstock network, supporting the following core functionalities:
- Asset backing : RBTC (Wrapped RBTC) and USDT0 lending pools, achieving full utilization.
- Automated strategy : The mBTC ↔ rBTC cyclical strategy can leverage the MidasRWA base BTC yield (1.79%) to over 6.6 times.
- E-Mode Efficiency : With an 85% LTV, 90% liquidation threshold, and 4% liquidation penalty for the relevant assets (mBTC/RBTC), it is specifically designed for cyclical optimization.
- Fee optimization : PowPeg improvements reduce BTC deposit and withdrawal fees by approximately 60%.
Timeline
| date | event | Details |
|---|---|---|
| September 26, 2025 | Loop strategy startup | $53K RBTC incentive, for 4 weeks |
| November 17, 2025 | Main incentive plan announced | A $50,000 RBTC incentive, distributed over 2 months, via Merkl. |
| November 24, 2025 | Merkl confirmed to be online. | LayerBank Rootstock Market Incentives Officially Take Effect |
| December 4, 2025 | Current status | The incentive program is ongoing (expected to run until January 17, 2026). |
Incentive Details
Current short-term incentive plan
Scale and duration :
- Total amount : $50,000 RBTC
- Duration : 2 months (November 17, 2025 - January 17, 2026)
- Average daily allocation : Approximately $1,600 from x.com
Qualified activities :
| pond | Activity type | TVL data (December 4) |
|---|---|---|
| WRBTC | Deposits/Loans | Deposits $3.09 million / Loans $2.59 million |
| USD₮0 | Deposits/Loans | Deposits: $1.31 million / Loans: $769,000 |
Revenue structure :
- Basic APY : 3.5-4.4%
- Incentive Bonus : Merkl shows that the highest APR can reach 50%.
- Points system : Borrowing activities are weighted higher (2.4 L.Points vs. deposits 0.3 L.Points), and can be converted to $ULAB tokens at x.com in Q4 2025.
Eligibility and Participation Methods
Qualification criteria :
- No minimum deposit requirement or whitelist restriction
- Rewards are allocated proportionally based on the position size tracked by Merkl.
- Automatic accumulation, can be claimed periodically.
Participation steps :
- Bridge BTC to RBTC via Rootstock PowPeg
- Connect your wallet to the LayerBank app (app.layerbank.finance/?chain=rootstock)
- Deposits of RBTC/USDT0 or borrowing operations can be processed using E-Mode for revolving transactions.
- Rewards are automatically accumulated via Merkl (app.merkl.xyz/chains/rootstock?protocol=layerbank)
Bonus opportunity : Participate in the Golden Sats mission for a chance to win approximately 155 Lil Pudgy NFTs from x.com
On-chain performance
Agreement metrics
Total Value Locked (TVL) :
- Current value : $1,529,299 (as of December 4, 2025, UTC)
- 7-day growth : +22.05% (from $1,253,054 to $1,529,299)
Liquidity Trends (November 27 - December 4):
| date | TVL (USD) | Daily changes |
|---|---|---|
| November 27 | $1,253,054 | benchmark |
| November 28 | $1,270,980 | +1.4% |
| November 29 | $1,252,747 | -1.4% |
| November 30 | $1,261,182 | +0.7% |
| December 1 | $1,271,253 | +0.8% |
| December 2 | $1,234,613 | -2.9% |
| December 3 | $1,292,954 | +4.7% |
| December 4 | $1,529,299 | +18.3% |
Technical Architecture
Smart contract mechanism :
- Deposits : Users deposit RBTC and receive lRBTC tokens, representing the principal plus accumulated interest.
- Borrowing : Overcollateralized Model, RBTC as Collateral
- Liquidation : Automatically triggered when the value of collateral falls below a threshold.
- Reward distribution : via LABDistributor and RewardController contracts, with a 90-day vesting period, and early withdrawal is supported (with penalties).
Community response
KOL Opinions
| Analyst | Opinion | Quality assessment |
|---|---|---|
| @0xcyberw1zard | "With substantial incentives and rewards tied to actual activities, LayerBankFi occupies a central position in the Rootstock ecosystem, marking a resurgence of Bitcoin DeFi." x.com | High quality: Analysis based on actual mechanisms |
| @Web3Spiderr | LayerBankFi, as a full-chain DeFi bank, supports cross-network lending and yield, and encourages participation in RBTC incentives. (x.com ) | Medium: Overview |
| @GamefiCrusher | "Integration drives the development of the emerging BTC DeFi sector, with active pools and incentives attracting over 5,700 users to participate in related programs." x.com | Medium: Supported by user data |
User experience
Core features :
- Low friction : "Instant earnings tracking, simple setup (earn money as soon as you deposit), no hidden complexities" x.com
- Transparency : Real-time APR tracking, automatic reward distribution
- Ease of use : No complex requirements, emphasizing a "high signal, low friction" experience.
Overall sentiment : Community discussions are generally positive, with a focus on the transparency and practicality of Bitcoin asset yield opportunities, and incentives are seen as a pragmatic step toward reviving Bitcoin DeFi.
in conclusion
LayerBankFi's short-term integration on Rootstock successfully attracted liquidity through a $50,000 RBTC incentive program (November 17, 2025 - January 17, 2026), with the protocol's TVL increasing by over 22% to $1.529 million in the past 7 days. The program utilizes the Merkl auto-allocation mechanism, combined with E-Mode's efficient parameters and automated recurring strategies, providing users with a low-barrier, highly transparent path to Bitcoin DeFi participation. Positive community feedback, high-quality KOL analysis, and a user experience emphasizing simplicity and directness mark substantial progress in the Bitcoin sidechain DeFi ecosystem.