BOB is introducing a series of Hybrid BTC yield products, creating the first-ever multi-chain BTC-yield layer. This hallmark innovation will allow users to deposit assets into managed vaults on the BOB network, and seamlessly collect Bitcoin yield from other chains. With Bitcoin finality rolling out on BOB mainnet in the near future, there will be no need for anyone to compromise on security in the pursuit of Bitcoin yield, further solidifying BOB's position as the ideal home for Bitcoin DeFi.

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Read on to learn more about Hybrid BTC, and how to get involved.

TLDR

  • BOB introduces Hybrid BTC yield products, creating the first-ever multi-chain BTC-yield layer.
  • Users deposit assets into a managed vault on BOB, collecting yield from other chains (initially Ethereum, with plans for BNB, Solana, Move, Berachain, and more).
  • First product is a HybridBTC.pendle vault, built in partnership with Veda, earning yield on Ethereum.
  • Secured by Bitcoin: BOB’s Hybrid L2 model anchors the network, bridges, and all DeFi transactions in Bitcoin security for unprecedented resilience and Bitcoin alignment.
  • Cross-chain yield positions are tokenized on BOB as Yield-Bearing Assets (YBAs), usable in DeFi on BOB to pursue additional yield.
  • HybridBTC.pendle is live now. It can be used as collateral in Euler v2 (also just launched on BOB) to borrow more BTC or other assets and added to DEX pools on Oku and Gamma. Hourglass has also integrated HybridBTC.pendle.
  • Both the vault deposits and HybridBTC.pendle used in DeFi on BOB are part of the new BOB Rise DeFi campaign where the 750k OP tokens received in Optimism Grant Season 6 will be distributed.

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Introducing Hybrid BTC

Hybrid BTC yield products have been designed to address the gaps in today’s fragmented Bitcoin DeFi landscape.

Despite a 2000% surge in cross-chain BTC liquidity over the past year, most BTC still relies on centralized or multisignature bridges with different custody models, making risk assessment difficult for liquidity providers. Only 0.3% of Bitcoin’s market cap is active in DeFi, compared to Ethereum’s 30%—a 100x difference. Enter Hybrid BTC.

BOB’s unique Hybrid L2 model means that the network, the bridges, and all transactions involved in Hybrid BTC will be secured by Bitcoin. This provides users with an unmatched level of security, simplicity, and Bitcoin alignment, adhering to core principles of security, decentralisation, and trust minimisation.

The HybridBTC.pendle vault, the first in a series of planned products, was created in partnership with Veda to access Bitcoin yield on Ethereum and return it to users on BOB in the form of BTC. Veda, which has grown to more than $3 billion in TVL, builds consumer-grade DeFi yield products and plays a crucial role in deploying and managing these vaults. The BOB vault will accept deposits in the form of Lombard’s LBTC, SolvBTC, SolvBTC.BBN and wBTC, expanding the utility of Bitcoin on BOB.

It’s also possible to access the Hybrid BTC vault directly on Ethereum, while still receiving HybridBTC.pendle on BOB. The Ethereum vault accepts cbBTC in addition to the assets accepted on BOB.

Try it out in the BOB app now >

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A Bitcoin-secured BTC yield layer

Hybrid BTC is different to other BTC yield products because of its Bitcoin alignment:

  • BOB’s BitVM bridge will soon provide a trust-minimized way to deposit native BTC, and which is far more secure than multisig or custodial methods.
  • BTC-staked finality—part of our Phase 2 roadmap—will anchor bridges to Ethereum, Solana, BNB, Move, and Berachain, so all asset transfers between BOB and the chains providing yield will also be Bitcoin secured.

The Hybrid BTC model combines both of these Bitcoin-secured innovations to offer maximum cross-chain yield opportunity without compromising on security. This Bitcoin-secured process can make HybridBTC the most powerful multi-chain Bitcoin DeFi tool.

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Easy to use

Hybrid BTC vaults will make it easy for anyone to access diverse sources of cross-chain Bitcoin yield in a highly secure manner. They automatically deploy deposited assets into DeFi applications on other networks, returning yield as BTC on BOB - all without people needing to worry about manually bridging or using different wallets and interfaces for all these chains.

By offering a single interface with clear risk parameters, Hybrid BTC removes the hassle of navigating scattered liquidity hubs. In a multi-chain world where demand for BTC will be everywhere, this positions BOB as the main marketplace for L1 and L2 chains seeking Bitcoin liquidity.

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Yield Bearing Assets (YBAs)

One of the key innovations behind Hybrid BTC is how cross-chain yield positions are minted on BOB as Yield-Bearing Assets (YBAs).

These YBAs can be used in BOB’s DeFi ecosystem to create leveraged positions, borrow stablecoins, or explore other yield strategies, all depending on your risk tolerance. For instance, the first pool for HybridBTC.pendle is now live on Oku, and you can also use HybridBTC.pendle as collateral in Euler v2—enabling you to borrow more BTC or other assets and potentially boost your returns. Crucially, the vault itself faces no impermanent loss or liquidation risk, and it will become more automated over time, reducing the need for manual oversight.

Alexei Zamyatin, BOB Co-Founder and BitVM Researcher said: “As a Hybrid L2, BOB is building the first multi-chain yield layer for Bitcoin. Thanks to our unique hybrid L2 model, BOB will be the best place to earn yield on Bitcoin, with the safest connections to other chains. HybridBTC.pendle is the first of many Hybrid BTC yield products, allowing anyone to do what whales are doing at scale on Ethereum, but without high gas fees and without needing to manually create and manage these positions.”

Zamyatin goes on to say: “Hybrid BTC is a very powerful Bitcoin DeFi tool and will position BOB as the home for L1 and L2 chains to acquire BTC liquidity. Because BOB has Bitcoin security, other chains only need to check and trust Bitcoin to see that BOB is secure. That is an easy task for every smart contract chain, so the potential reach of Hybrid BTC is large.”

Try it out in the BOB app now >

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BOB RISE DeFi campaign

To support the launch and growth of Hybrid BTC, and Bitcoin DeFi in general, we’re focusing our new BOB Rise DeFi campaign on HybridBTC.pendle. .

This DeFi campaign, courtesy of Optimism Grant Season 6, will reward participation in key Hybrid BTC mechanisms—such as deposits in Veda’s vault and the usage of the HybridBTC.pendle YBA in Euler and Oku—by offering a share of the 750,000 OP tokens allocated to BOB. This is part of a wider drive to put Bitcoin at the heart of DeFi, incentivizing liquidity provision, lending, and borrowing of BTC LSTs.

If you’re ready to explore multi-chain BTC yield underpinned by Bitcoin security, head to Bobrise.xyz and get involved.

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Initial Hybrid BTC Partners

We’ve teamed up with five leading DeFi players—Veda, Euler, Oku, Gamma and Hourglass—to help bring Hybrid BTC to life and unlock the best yield opportunities for Bitcoin holders.

Veda

  • DeFi Earn Network with a consumer-grade approach to yield products and infrastructure.
  • Since launching in March 2024, Veda has grown to over $3B in TVL, invented the BoringVault (the definitive vault standard for DeFi), reached 100k users
  • Veda deploys and manages on-chain vaults where people can deposit assets to earn points or yield.
  • They’re managing the HybridBTC.pendle vault.

Euler

  • A flexible decentralized lending and borrowing platform, built for everyday users.
  • Uses modular design and institutional-grade security to let builders create custom lending markets in a permissionless manner.
  • Euler V2, now live on BOB, features governed and ungoverned vaults.
  • This partnership lets the BOB community lend, borrow, and even loop-leverage their HybridBTC.pendle positions—for example, by borrowing more Bitcoin assets to add to the vault and increase their yield potential.

Oku Trade (Uniswap v3)

  • Oku Trade is a DeFi trading platform, powered by Uniswap v3
  • Offers a professional trading interface for Uniswap’s official deployment on BOB, enabling advanced DeFi trading.
  • By providing advanced on-chain trading and position management, Oku will help boost liquidity and make it easier for users to manage HybridBTC yield.  

Gamma

  • A protocol for active liquidity management and market making strategies
  • Designed for non-custodial, automated, and active management of concentrated liquidity.
  • Their key feature is a vault, which is a non-custodial position manager contract that can manage a liquidity pool with strategies.  
  • Gamma’s active management will optimize users’ DEX liquidity position, helping them earn higher yields without constant manual oversight.

Hourglass

  • Hourglass provides infrastructure for leveraged airdrop farming
  • Lets users lock up capital for a certain duration of time to boost their rewards or leverage farm points similar to Pendle.

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