Original Author: 0xewwierw
Introduction
As the FOMO sentiment for Bitcoin Layer 2 fades, projects that continue to invest in infrastructure and user-friendliness may emerge as the ultimate winners.
According to data from the BitVM Chinese community, there are currently over 50 Bitcoin Layer 2 projects on the market, some of which have been in development since 2013, while others were just initiated this year. These projects cover various types, including side chains and Rollup. In this fierce market competition, Bitlayer, a Bitcoin Layer 2 project based on BitVM technology, is relying on its own technological innovation and continuous ecosystem construction to become the fastest-growing Layer 2 project in the Bitcoin ecosystem.
As a Bitcoin Layer 2 solution based on BitVM, Bitlayer has introduced Layered Virtual Machine technology, utilizing zero-knowledge proofs and optimistic verification mechanisms to support various computations. Additionally, Bitlayer has built a dual-channel bidirectional locked asset bridge through OP-DLC and BitVM bridge, thereby achieving the same level of security as the Bitcoin Layer 1.
Beyond technological innovation is the ecosystem. A good ecosystem can promote project development and progress, forming a positive cycle that encourages more projects and resources to be invested in ecosystem construction. On April 29th of this year, Bitlayer launched a $50 million token airdrop incentive for developers, attracting developers to migrate to EVM and support Bitlayer-native Dapps, while also encouraging project teams to distribute the airdropped tokens to active users on the chain at minimal cost to achieve a cold start.
The developer airdrop plan for Bitlayer is showing initial results. The following is Bitlayer’s official recent release of the ecological panorama, from which it can be seen that, although Bitlayer’s ecosystem is still in the relatively early stages, it shows signs of vigorous development.
Official data shows that hundreds of projects are currently being developed on the Bitlayer network, covering various sectors such as infrastructure and developer tools, wallets, DeFi, NFT, games, metaverse, and RWA. These include mature infrastructure projects such as Ankr, Polyhedra Network, Meson, Apro, and imToken, as well as Bitlayer-native applications such as Bitsmiley, Avalon Finance, bitCow, Lorenzo, Pell, Bitparty, Enzo, and Marcaron.
The following will briefly introduce the important projects in the current Bitlayer ecosystem. The data regarding TVL is accurate as of June 19th and is intended to be helpful to users interested in the Bitlayer ecosystem.
DeFi
Avalon Finance
Avalon Finance is an important solution for unlocking trillions of dollars in BTC, offering the first CeDeFi lending platform that allows BTC holders to trust custody services, unlock BTC liquidity, and earn interest in DeFi. Avalon Finance aggregates all liquidity and introduces a variety of assets, including BTC, ERC-20, BRC-20, BTC ETF, and real-world assets (RWA), opening the door for millions of new users. Currently, Avalon Finance’s products include CeDeFi BTC lending and DeFi lending (applicable to ERC-20, BRC-20, and RWA assets).
Current TVL: $287.13M
bitSmiley
bitSmiley is a Bitcoin blockchain protocol based on the Fintegra framework, composed of three main components: a decentralized over-collateralized stablecoin protocol, a locally trustless lending protocol, and a derivatives protocol. These components together provide a comprehensive financial ecosystem on the Bitcoin blockchain, enhancing its functionality and practicality in the decentralized finance (DeFi) field.
Current TVL: $33.83M
Lorenzo
Lorenzo aims to create the first Bitcoin liquidity finance layer based on the Babylon ecosystem. The platform connects Bitcoin collateral holders of any size with high-quality projects in need of liquidity and security, providing the most convenient and smooth BTC asset re-pledging experience for crypto investors. The Lorenzo Protocol releases collateral asset liquidity and captures the best collateral returns, using innovative interest separation to make the construction of complex DeFi products based on BTC a reality, further exploring more possibilities for Bitcoin finance.
Macaron
Macaron is the native DEX on the Bitlayer chain, providing users with a range of tools including liquidity farming, staking incentives, trade-to-earn, airdrops, and more to increase user profits. With the support of Bitlayer’s technology and ecosystem, the team is committed to creating an excellent product, making the Macaron DEX more secure, affordable, and faster.
Current TVL: $30.82M
TrustIn Finance
TrustIn Finance is a native permissionless lending protocol on Bitlayer, driven by a Bitcoin-secure equivalent Layer 2 solution built on BitVM. Users can use encrypted assets as collateral to borrow underlying assets faster and more securely on Trustin, while also earning interest by providing assets to the protocol.
Current TVL: $10.83M
bitCow
bitCow is an AMM protocol that provides stable swaps and automatic concentrated liquidity.
Current TVL: $33.83M
Enzo Finance
Enzo Finance is a decentralized lending protocol on Bitlayer with advanced algorithmic technology, supporting LP, NFT, and metaverse asset lending.
Current TVL: $10.77M
Nekoswap
Nekoswap aims to become a fully community-driven, fair, transparent, and decentralized exchange, including swap, liquidity pool, farm, launchpad, and rune trading functions. NekoRunes will be the first tokenized asset on Nekoswap.
Infrastructure
Pell Network
Pell Network is the first actively verified service (AVS) network built on a re-pledge protocol in the Bitcoin ecosystem. Pell Network utilizes cross-chain atomic communication technology and ZK-Rollup to build a unified Pell network ledger for BTC and its LSD liquidity assets dispersed across various Layer 2 networks, thereby creating a decentralized governance AVS ecological service network. This allows Bitcoin to participate in the secure verification process of a wide range of decentralized ecosystem applications to expand revenue scenarios.
Current TVL: $76.69M
Apro Oracle
APRO Oracle is an innovative system designed to create stablecoins and bridge them to the Bitcoin mainnet. It ensures the security and authenticity of price information through a two-step price kò aggregator while minimizing operational costs. The system also uses socket noise to generate random numbers, providing random services to various projects and ensuring network security and reliability through a dual-layer network.
Cross-chain Bridges
Polyhedra Network
Polyhedra Network is a leading ZK interoperability infrastructure globally. Its developed zkBridge has become one of the largest cross-chain infrastructures in multi-chain ecosystems, aiming to build the largest Bitcoin interoperable ecosystem globally. Bitlayer has partnered with Polyhedra Network to achieve fast and secure interoperability for Bitcoin Layer 2 through zkBridge.
Meson Finance
Meson Finance now supports over 50 public chains and Layer 2 networks, making it one of the most important Bitcoin cross-chain tools.
Owlto Finance
Owlto Finance is a user-friendly, secure, fast, and low-cost asset transfer cross-chain interoperability protocol that directly transfers assets between different Layer 2 networks.
Orbiter Finance
Orbiter Finance is a decentralized cross-rollup bridge for transferring native assets from Ethereum. Orbiter establishes sender and maker roles, where the sender initiates the transfer and the maker provides liquidity. Smart contracts ensure the security of the entire process. If the maker’s misconduct leads to a transfer failure, the sender can initiate an arbitration request with the maker’s margin to receive excess compensation.
Bool Network
Bool Network is a permissionless, decentralized, and secure Bitcoin verification layer designed to expand the Bitcoin network securely without changing Bitcoin consensus, promoting the prosperity of the Bitcoin ecosystem.
Wallets
OKX Wallet
OKX Web3 Wallet is a non-custodial, decentralized multi-chain wallet with a built-in cross-chain exchange aggregator DEX, a one-stop on-chain investment tool DeFi, and a heterogeneous multi-chain aggregation trading platform supporting Crypto, Ordinals, and NFT. The wallet currently supports the Bitlayer mainnet and ecosystem.
TokenPocket
TokenPocket is a globally leading multi-chain self-custody wallet that supports Ethereum, BNB Chain, Polygon, and other EVM-compatible networks, as well as Bitcoin, TRON, Solana, Dogecoin, and other non-EVM-compatible networks. TokenPocket currently supports the Bitlayer mainnet and ecosystem.
Bitget Wallet
Bitget Wallet is a global leading one-stop Web3 multi-chain wallet, providing users with comprehensive on-chain products and DeFi services, including wallets, swap trading, NFT trading, and DApp browsers. Bitget Wallet currently supports the Bitlayer mainnet and ecosystem.
NFT
NFTGo
NFTGo is a global leading one-stop NFT data aggregation platform that aims to aggregate, analyze, and present NFT data from across the network, providing features such as a search engine, data visualization, rarity query, whale tracking, and NFT launch.
Meme
bone
Bone is the winning project from the bitSmiley public test event The Trumeme Show, which was deployed on the Bitlayer mainnet on May 1st and destroyed on May 3rd.
Cat Driving Bitcoin
Cat Driving Bitcoin ($CBD) is a native MEME on the Bitlayer chain, with a visual theme centered around cats and driving. $CBD aims to disrupt the meme economy by building a thriving, modern, and high-rise Bitcoin world. The project aims to become the largest community asset on Bitlayer.
Demoji
Demoji is the launch of the Meme token $moji on Bitlayer by DeBox. 100% of the tokens will be distributed to DeBox and Bitlayer ecosystem participants (NFT holders, stakers, lucky helmets, Bone/CBD purchasers, etc.) through airdrops.
Launchpad
Pumpad
Pumpad is a native project on Bitlayer. As a one-stop launchpad for the Bitcoin ecosystem, Pumpad supports the automatic addition of DEX liquidity after issuers issue VGA assets according to the IPOS standard and deploys automatic market-making protocols.
pika
Pika is the first IDO platform on Bitlayer, dedicated to helping new projects or startups grow. As a comprehensive service provider, Pika offers incubation, fundraising, token listing, backend services, and community development support to projects.
RWA
Zoth
Zoth is an ecosystem connecting traditional finance and on-chain finance, providing liquidity and RWA. Zoth’s first product, ZOTH – Fixed Income (ZOTH-FI), is an institutional-grade fixed income market that offers cross-border trade finance, treasury bills, and sovereign bonds, among other RWAs.
Blockchain Gaming
4 Metas
4 Metas aims to completely change the entertainment landscape by creating a unified platform for gaming, streaming, and virtual experiences. It is not just a platform; it is a Web3-native ecosystem that integrates GameFi, social features, metaverse, and AR/VR in one dynamic space.
Moonshot
Moonshot (formerly Nearcrash) is a game suitable for adventure and thrill enthusiasts, aiming to become the top-ranking multi-chain Crash game.
GamerBoom
GamerBoom is a game social platform centered on digital-native generations, combining the essence of Web2 games with the possibilities of Web3, pushing Web3 to mainstream gamers.
Woof Woof West
Woof Woof West is a play-to-earn game deployed on Bitlayer with social and user interaction as its core elements.
Richverse
Richverse is the first asset gamified network that integrates business, competition, socializing, and commitment, providing players with asset collateral, consumption, and other game scenarios. Starting with the first Monopoly-type game, Richverse hopes to make the Bitcoin ecosystem richer and more fun.
Anome
Anome is an NFT derivative asset issuance and lending platform that enters the full-chain gaming scene, aiming to help users unlock liquidity and value of NFT assets by building an integrated DeFi, NFTFi, and GameFi closed-loop ecosystem, becoming the world’s largest NFT collateral lending protocol in terms of TVL. Anome’s “NFT Melee” game is the world’s first AI-driven, UGC, exchangeable, full-chain card game that supports ERC 404 assets. Players can improve their combat capabilities by training the game AI, gaining more enjoyment from the game.
Metaverse
Redbrick
Redbrick is a UGC-based metaverse platform that provides land builders and 3D studios, creating a token economy that fairly rewards the value of creations.
Conclusion
According to DefiLlama data (https://defillama.com/chain/Bitlayer), Bitlayer’s TVL is currently $361M, with significant room for growth compared to Ethereum L2. However, considering that only 2 months have passed since the deployment of Bitlayer’s mainnet V1, the liquidity scale and number of ecosystem projects currently gathered by the project are already far ahead of similar projects.
Overall, Bitlayer is still in its early stages, with many ecosystem projects needing time to be tested and further unlock their potential. However, with the continuous progress and implementation of Bitlayer’s developer airdrop incentive plan, as well as the ongoing expansion of the mining festival series incentives, it is expected that more and more Bitlayer-native applications will soon emerge, with new assets beginning to circulate, resulting in the rapid increase of Bitlayer’s valuation.
