On February 26, the hybrid Layer 2 project BOB (Build on Bitcoin) announced the launch of the DeFi yield product series Hybrid BTC, which built the industrys first multi-chain BTC yield layer. Through Hybrid BTC, users can deposit their assets into the Vault on the BOB network, which can automatically deploy the deposited assets to DeFi applications on other chains, and ultimately return the proceeds to the user in the form of BTC. Throughout the process, users only need to deposit their assets into Hybrid BTC, without having to worry about cross-chain and wallet access issues, and can simply deposit assets with one click.
With Bitcoin Finality coming to the BOB mainnet in the near future, no one will have to compromise on security in pursuit of Bitcoin gains, further solidifying BOB’s position as the “ideal home” for BTC DeFi. The first partners of Hybrid BTC are Veda, an EVM extension protocol based on Ordinals, Euler, a DeFi lending protocol, and Lombard, a Bitcoin liquidity staking platform.
The HybridBTC.pendle vault is the first product in the Hybrid BTC product series. It was jointly created by BOB and Veda to obtain Bitcoin income on the Ethereum network (ultimately returned to users in the form of BTC income). According to the latest data, Vedas current TVL has exceeded US$3 billion. It has built consumer-grade DeFi income products and plays a vital role in deploying and managing these vaults.
BOBs unique hybrid Layer 2 model means that the blockchain network, 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, ease of use, and Bitcoin consistency, following the core principles of security, decentralization, and trust minimization. The Hybrid BTC vault will also simplify access to different sources of Bitcoin income, allowing users to maximize Bitcoin income without navigating different product interfaces or wallets. In addition, Lombards LBTC will be used as the base asset of the new vault, providing additional utility to the $1.8 billion Bitcoin Liquid Staking Token (LST) TVL. In the future, BOB will launch more vaults to obtain BTC DeFi income on chains such as Solana, BNB, Base, Move, and Berachain.
Alexei Zamyatin, co-founder of BOB and core contributor of 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 be the best place to earn Bitcoin yield while crossing chains to other L1/L2 public chains in the most secure way. HybridBTC.pendle is the first in the Hybrid BTC series of yield products, which allows ordinary retail investors to earn large-scale yields on the Ethereum network like whales without the high gas fees and the need to manually create and manage these positions.”
In addition, Zamyatin 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 safe. This is a simple task for every smart contract chain, so the potential impact of Hybrid BTC on the market is huge. ”
Veda co-founder and CEO Sun Raghupathi said: 2025 will be the first year of BTC DeFi. BOBs hybrid Layer 2 model significantly enhances security and usability in the pursuit of Bitcoin returns. At Veda, we are committed to making DeFi seamless while bringing real assets to the chain. Partnering with outstanding projects like BOB enables us to further this vision and bring the benefits of DeFi to a wider audience.
Yield Bearing Assets
These cross-chain yield positions are tokenized as yield-generating assets (YBA) on BOB and can be used in DeFi applications on BOB. HybridBTC.pendle has integrated Euler v2, which is also available on the BOB network today.
Euler is a flexible decentralized lending platform that maximizes the returns of users positions generated through HybridBTC.pendle. Eulers permissionless mechanism makes it a powerful tool for DeFi users seeking efficient BTC liquidity management.
To support the double helix growth of HybridBTC.pendle and BTC DeFi, BOB also launched a DeFi event, BOB Rise, which incentivizes users to share the 750,000 OP tokens that BOB received in the Optimism Grant Season 6. The BOB Rise event aims to enhance BTC liquidity supply while promoting the lending of Bitcoin Liquid Staking Tokens (LST) and the new YBA.
Michael Bentley, CEO of Euler, said: “With the launch of Euler v2 on the BOB network, we are excited to provide Bitcoin holders with a secure way to use their Bitcoin. Users using HybridBTC.pendle as collateral unlock new features for leverage and liquidity management. We are proud to be part of the new era of BTC DeFi and work hand in hand with BOB to take an important step in the innovation of BTC DeFi solutions.”
About BOB (Build on Bitcoin)
BOB (Build on Bitcoin) is a hybrid Layer-2 network that combines the best of Bitcoin and Ethereum, and is committed to establishing itself as the Home of BTC DeFi. The unique Hybrid L2 model combines the advantages of both ecosystems - Bitcoins security and dormant BTC capital, and Ethereums DeFi innovation and versatility. By positioning BTC as the backbone 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 using the BitVM protocol, and creates a trust-minimized bridge between BOB, Bitcoin, Ethereum, and other L1 networks. As a result, Hybrid L2 does not need to rely on a third-party cross-chain bridge for interoperability, easily concentrating liquidity around the Bitcoin network instead of being scattered across various 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 specifically for the decentralized finance (DeFi) ecosystem, enabling crypto applications, asset issuers, and protocols to build consumer-grade cross-chain yield products. Vedas technology powers many mainstream DeFi vault products, including ether.fi Liquid, Lombard DeFi Vault, and Mantle cmETH. Currently, more than 100,000 users trust and use Veda, and the platform has stored approximately $3 billion in assets to date.
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About Euler
Euler is a decentralized, permissionless lending protocol that helps users earn interest on crypto assets or hedge against volatile markets without the need for a trusted third party, with lenders and borrowers receiving market-leading risk-adjusted rates. Developers can create and manage markets the way they want, with institutional-grade security. For more information, visit euler.finance .
