BOB ("Build on Bitcoin") has announced the successful integration of native BTC (not wrapped tokens) into its Bitcoin DeFi ecosystem through the BitVM Testnet. This milestone is supported by ten leading industry institutions, including Lombard, Solv Protocol, Fiamma, and others, marking a new era for Bitcoin-based decentralized finance.
Key Highlights
- Native BTC Integration: BOB introduces untouched Bitcoin into DeFi, eliminating reliance on centralized custodians or multi-signature wrapped BTC.
- BitVM Testnet Launch: The testnet went live on July 2, with mainnet deployment planned for Q4 2025.
- Security Mechanism: Utilizes a fraud-resistant "1-of-N" model to ensure Bitcoin-native security.
- Institutional Backing: Supported by BitVM Alliance members, including P2P.org, Amber Group, and UTXO Management.
Why This Matters
BOB’s approach fundamentally differs from existing DeFi solutions by preserving BTC’s native properties while enabling seamless DeFi participation. This aligns with Ethereum’s model (where ETH remains "ETH" on L2s like Arbitrum) but extends Bitcoin’s utility beyond being "digital gold."
👉 Discover how BitVM unlocks trillion-dollar liquidity
BitVM Alliance Collaboration
The BitVM Alliance—a coalition of developers and institutions—is advancing BitVM from theory to practice. Partners are running nodes to validate the testnet, accelerating real-world adoption. Notably, this marks the first instance of non-alliance entities operating BitVM infrastructure, proving its practical viability.
Quotes from Industry Leaders
Alexei Zamyatin (BOB Co-Founder):
"Our vision is to place Bitcoin at the heart of DeFi. BitVM makes this possible by enabling trustless, native BTC integration backed by Bitcoin’s own security—no third-party intermediaries needed."
Ryan Chow (Solv Protocol CEO):
"BitVM’s trustless architecture aligns with our mission: unlocking institutional-grade yield for native Bitcoin assets while staying true to Bitcoin’s protocol."
Artemiy Parshakov (P2P.org VP):
"BitVM is the missing puzzle piece to unleash Bitcoin’s trillion-dollar liquidity. BOB’s bridge solves the trust barriers plaguing BTC DeFi."
Technical Innovations
BOB’s hybrid Layer 2 model merges Bitcoin’s security with Ethereum’s scalability, offering key improvements:
- Ethereum-Based Data Availability: Leverages cost-efficient Ethereum blocks for fraud-proof data storage, inheriting Ethereum’s anti-censorship traits.
- Role Specialization: Separates node operators (computation) from liquidity providers (withdrawals), akin to PoS systems, enhancing efficiency.
- Collateral Reuse: Allows BTC collateral to be multiplexed across BitVM instances, boosting scalability (based on Citrea/CommonPrefix research).
About BOB
BOB is a hybrid L2 network combining Bitcoin’s security with Ethereum’s DeFi innovation. Backed by Castle Island Ventures, Coinbase Ventures, and IOSG, it aims to be the "Home for BTC DeFi" by:
- Using BitVM for trust-minimized bridges between Bitcoin, Ethereum, and other L1s.
- Eliminating dependency on third-party cross-chain bridges.
- Centralizing liquidity around Bitcoin instead of fragmenting it across chains.
FAQ
1. What’s unique about BOB’s BitVM bridge?
Unlike wrapped BTC solutions, it preserves Bitcoin’s native properties with a fraud-proof "1-of-N" security model.
2. When will BitVM go live on mainnet?
Q4 2025, following successful testnet trials.
3. Which institutions support BitVM?
P2P.org, Lombard, Solv Protocol, Amber Group, and six others are key backers.
4. How does BOB improve scalability?
By reusing BTC collateral across multiple BitVM instances and leveraging Ethereum for data storage.
5. Is BitVM trustless?
Yes—it relies on Bitcoin’s own security, avoiding centralized intermediaries.
Disclaimer: This content is for informational purposes only and not investment advice. Conduct independent research before making financial decisions.
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