A Farhan

Recently, I have been paying attention to Treehouse, and I personally have high hopes for this project.
@TreehouseFi is building the on-chain world's 'fixed income infrastructure', making DeFi investments as predictable, modeled, and data-supported as TradFi.
There are basically two core modules:
🔹tAssets
You can deposit ETH or LSD into the protocol → generate tETH and other 'fixed income assets'. The protocol achieves returns through multi-strategy DeFi investments.
🔹DOR
On-chain version of the 'benchmark interest rate'. Multiple professional participants submit rate estimates, forming a unified interest rate curve through weighted voting, somewhat like Web3's 'federal interest rate'. These combinations can establish a Web3 version of 'stable income layer + interest rate market'.

@BitlayerLabs is an innovative Layer-2 (L2) network built on top of Bitcoin that dramatically expands Bitcoin’s capabilities beyond straightforward transfers. It introduces Turing-complete smart contracts, high throughput, and sub-second confirmation times, while anchoring its security firmly to the Bitcoin blockchain.

It employs a recursive settlement protocol—a mechanism that allows continuous chains of state updates from the L2 to be settled on Bitcoin, ensuring that the L2’s security is rooted in Bitcoin’s proof-of-work. .

Its execution layer is modular, EVM-compatible, and optimized for fast transaction finality under a proof-of-stake consensus. .

The BitVM paradigm is central to this architecture—it enables optimistic validation schemes and smart contract expression on Bitcoin. .
So, in short, Bitlayer transforms Bitcoin into a powerful, programmable platform while preserving its foundational security.

What is the BitVM Bridge?

The BitVM Bridge is a trust-minimized protocol enabling the seamless transfer of BTC into the Bitlayer ecosystem, effectively tokenizing BTC as YBTC (also referred to as “Peg-BTC”) for use within decentralized finance (DeFi).

Key Highlights:

Trust-minimized design: Unlike bridges reliant on centralized parties, the BitVM Bridge uses BitVM smart contracts, fraud proofs, and zero-knowledge mechanisms to reduce trust assumptions to just needing one honest actor. .

Third-generation BTC bridge: It marks a significant leap from earlier centralized or semi-centralized models to a protocol secured by cryptographic guarantees and on-chain verifiability. .

YBTC (“Yielding BTC”): When BTC is locked into the BitVM smart contract, it gets converted into YBTC on Bitlayer (or supported chains), maintaining a strict 1:1 peg. Unlike liquid staking tokens, YBTC backing is strictly secure and inaccessible to third parties. .

How it Works:

Users lock BTC in a Bridge Contract A on Bitcoin, governed by BitVM smart contracts with predefined transaction graphs and multisig arrangements. .

On the target L2 (e.g. Bitlayer rollup), Bridge Contract B mints YBTC, enabling users to engage in DeFi activities like staking, lending, or trading. .

For withdrawals, brokers front liquidity for peg-out requests and later reclaim BTC from Bridge Contract A. Fraud proofs and challenges safeguard the process by penalizing invalid claims. .

Recent Developments:

As of July 2025, the BitVM Bridge has launched on mainnet, enabling secure, programmable, and trust-minimized BTC transfers. .

The bridge integrates across multiple chains including Sui, Base, Arbitrum, Starknet, etc., enhancing Bitcoin’s liquidity across diverse ecosystems. .

It's recognized as one of the earliest real-world deployments of BitVM, marking a milestone for Bitcoin-native DeFi functionality. .

Final Thoughts

Together, Bitlayer and the BitVM Bridge open the door to a truly programmable Bitcoin – offering fast, secure, and decentralized applications anchored to one of the most secure blockchains. This infrastructure adds a transformative layer to Bitcoin's financial potential, enabling DeFi, NFTs, payments, and more – all while preserving Bitcoin’s foundational trust model.
#Bitlayer