Scaling bitcoin defi: how bitlayer is unlocking $1T in idle BTC
Bitcoin is valuable — but most of it just sits there.
Despite holding over 60% of crypto’s total market cap, Bitcoin’s utility in decentralized finance remains largely untapped. Charlie, co-founder of Bitlayer, is here to change that.
In Episode 274 of Web3 with Sam Kamani, we dive deep into how Bitlayer is building a Bitcoin-native rollup that brings smart contract functionality, DeFi liquidity, and miner incentives — all while preserving the core ethos of Bitcoin security.
from bitcoin maxis to defi pragmatists
Charlie’s journey started early — from mining Bitcoin to exploring Ethereum, Polygon, and Polkadot. But he kept circling back to one question:
Can Bitcoin be more than just digital gold?
With Bitlayer, he’s betting on yes.
building defi on bitcoin, not around it
Instead of creating yet another sidechain or custodial bridge, Bitlayer is developing a BVM (Bitcoin Virtual Machine) rollup. This architecture enables trust-minimized bridging — meaning no multisig, no wrapped tokens, and no single points of failure.
“You shouldn't have to sacrifice Bitcoin-level security to participate in DeFi.” — Charlie
The BVM bridge is designed to move BTC across ecosystems — from EVM-compatible chains to Solana and Sui — while retaining fraud-proof guarantees.
why miners are part of the plan
Post-halving economics are squeezing miner incentives. Bitlayer offers a solution:
By integrating fee redistribution to miners directly into the rollup design, it ensures sustainability without relying on block rewards alone.
It’s a bold shift — aligning long-term miner incentives with broader Bitcoin adoption.
the numbers speak
Bitlayer’s traction is already impressive:
- $1B TVL peak
- 65M+ transactions
- 3M+ unique wallets
- Backed by Franklin Templeton, F2Pool, and more
And it’s just the beginning.
beyond infrastructure: culture & community
Charlie compares Bitlayer’s engineering culture to Formula 1:
Precision, speed, and no tolerance for failure.
This ethos is visible in their branding, team (featuring engineers from Polygon, Celestia, and Alibaba), and their approach to onboarding developers and users. They’re creating not just a product — but a Bitcoin engine for DeFi.
btr governance, partnerships & what’s next
Bitlayer’s BTR token is set to launch this August, enabling community governance and staking mechanisms to drive decentralization.
Strategic partnerships are already in play:
- Sui
- Solana
- Top DeFi protocols
Their near-term roadmap includes on-chain campaigns, retail onboarding, and institutional DeFi products — all secured by Bitcoin finality.
final thoughts: the decade ahead for bitcoin
Charlie envisions a Bitcoin ecosystem with:
- Native gas fees in BTC
- Perpetual DEXs and lending
- Yield-bearing BTC (YBTC)
- Institutional-grade DeFi instruments
It's a future where Bitcoin isn't just stored — it’s active capital.
Resources & Links
- Listen to the Episode:
Spotify | Apple Podcasts - Connect with Charlie & Bitlayer:
Bitlayer.org
@BitlayerLabs
@CharlieHusats
Charlie’s LinkedIn
Disclaimer
This blog post is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
