BOB Leads the Next Era of Bitcoin DeFi with the Launch of Hybrid BTC Yield Products

BOB solidifies its position as the ideal home for Bitcoin DeFi, pioneering a seamless and secure way to access Bitcoin yield across multiple chains. First partners include Veda, Euler & Lombard.

LONDON, Feb. 27, 2025 /PRNewswire/ -- BOB ("Build on Bitcoin"), a hybrid Layer-2 combining the security of Bitcoin with Ethereum's DeFi innovation, 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. BOB's initial partners for launching Hybrid BTC are Veda, Euler, Lombard, Gamma, Oku and Hourglass.

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.

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 Hybrid BTC vaults will also streamline access to diverse Bitcoin yield sources, enabling users to maximise BTC yield without needing to navigate different interfaces or wallets. Lombard's LBTC will be accepted as an underlying asset for the new vaults, providing additional utility to the $1.8B TVL Bitcoin liquid staking token (LST). More vaults are planned to access yield on chains including Solana, BNB, Base, Move and Berachain.

Alexei Zamyatin, BOB Co-Founder and BitVM Core Contributor 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 added: "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."

Sun Raghupathi, Co-founder and CEO, Veda said: "2025 is shaping up to be a major year for Bitcoin DeFi. BOB's Hybrid BTC model significantly enhances security and usability in the pursuit of Bitcoin yield. At Veda, we're committed to making DeFi seamless and bringing every asset on-chain. Partnering with projects like BOB allows us to push that vision further and make DeFi's benefits more accessible to a wider audience."

Yield Bearing Assets

These cross-chain yield positions are tokenised on BOB into yield-bearing assets (YBAs), which can be utilised in DeFi applications on BOB. HybridBTC.pendle is already integrated with Euler v2 and Hourglass, which also launched on BOB today.

Euler is a flexible decentralised lending and borrowing platform that enables users to leverage their HybridBTC.pendle positions. Euler's permissionless design makes it a powerful tool for DeFi users seeking efficient BTC liquidity management. Hourglass provides leveraged airdrop farming.

To support the growth of HybridBTC.pendle and Bitcoin DeFi in general, BOB has launched BOB Rise, a DeFi campaign allocating 750,000 OP tokens from Optimism Grant Season 6. The initiative aims to enhance BTC liquidity provision while facilitating lending and borrowing of Bitcoin liquid staking tokens (LSTs) and the new YBAs.

Michael Bentley, CEO at Euler said: "With the launch of Euler v2 on BOB, we're excited to provide Bitcoin holders with a secure way to put their Bitcoin to work. Allowing users the ability to use HybridBTC.pendle as collateral unlocks new capabilities for leverage and liquidity management. We're proud to be part of a new era in innovation, and work with BOB to provide a major step forward for DeFi solutions on Bitcoin."

About BOB ("Build on Bitcoin")

BOB ("Build on Bitcoin") is a Hybrid Layer-2 blockchain that combines the best of Bitcoin and Ethereum to create the home for Bitcoin DeFi. The unique Hybrid L2 model merges the strengths of both ecosystems—Bitcoin's security and dormant capital, with Ethereum's DeFi innovation and versatility. By positioning BTC as the backbone of a new decentralised finance system, BOB can unlock new use cases and trillions in BTC liquidity. BOB uses BitVM to inherit security from Bitcoin and create trust-minimized bridges between BOB, Bitcoin, Ethereum, and other L1s. As a result, the Hybrid L2 does not need to rely on third-party bridges for interoperability, concentrating liquidity around Bitcoin instead of fragmenting it across chains. BOB is backed by leading investors such as Castle Island Ventures, Coinbase Ventures, Ledger Cathay Ventures, and IOSG.

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About Veda

Veda is the leading DeFi vault platform, enabling crypto applications, asset issuers, and protocols to build consumer-grade cross chain yield products. Veda's technology powers many of DeFi's largest vault products, including ether.fi Liquid, Lombard DeFi Vault, and Mantle cmETH. More than 100k depositors trust Veda with ~$3B of assets.

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About Euler

Euler revolutionizes DeFi by letting any asset become collateral for a lending market. Lenders and borrowers get market leading risk-adjusted rates. Builders can create and manage markets exactly how they want them, with institutional-grade security. For more information, visit euler.finance.