- BOB begins its rollup of Ethereum for Bitcoin layer-2, with more to follow in the next three weeks.
- On Wednesday, the Build on Bitcoin (BOB) project declared the opening of its first phase, which allows decentralized applications, or dapps, to communicate with the most popular blockchain globally.
The team announced on Twitter that the BOB mainnet is going live with over 40 dapps available and $300 million in total value locked (TVL). They called it “a Bitcoin-driven DeFi summer” and promised more in the upcoming three weeks.
The goal of Build on Bitcoin is to create a hybrid layer-2 network, or “Ethereum rollup,” that combines the decentralized finance (DeFi) capabilities of Ethereum (such as smart contracts, wallets, and stablecoin access) with the widespread use, liquidity, and proof-of-work security of Bitcoin.
Utilizing Build on Bitcoin, Bitcoin DeFi developer Sovryn extended its services to the Ethereum environment in March. In the meantime, BOB works with Wrapped BTC (WBTC) and tBTC from Threshold.
Co-founder of BOB Alexei Zamyatin said, “We are currently working on our bridge infrastructure in parallel while working with the two leading BTC bridge providers.” In order to abstract bridge complexity and make the process of shifting liquidity from Bitcoin to BOB as simple as moving it from Ethereum to an ETH L2 that goes live next week, we developed a one-click onramp from Bitcoin to BOB.
According to Zamyatin, Build on Bitcoin is collaborating with groups that offer bridges for BRC-20 tokens, Ordinals, and Runes in order to offer a one-stop shop for Bitcoin-related services.
The BOB team stated that while Bitcoin DeFi is the ultimate goal, the leading blockchain is not yet ready, necessitating “bootstrapping” on Ethereum.
The team stated that connecting to Ethereum uses a practical rollout strategy. Although there’s a big demand, Bitcoin rollups don’t work yet: While Ethereum users wish to use their BTC and gain access to Ordinals, Runes, and BRC-20s, Bitcoin users require stablecoins and DeFi.
BOB stated, “It’s time to put an end to the cult-like rivalries and bring the two biggest Web3 ecosystems together to lead broad adoption jointly.
The next stage of BOB’s development, according to Zamyatin, will accomplish Bitcoin proof of work merged mining, improving security without interfering with Bitcoin mining. The process of simultaneously mining two or more blockchains is known as “merged mining.”
Due to Proof-of-Work’s restrictions, earlier merged mining instances experienced slow block times (30sec–1min), he claimed.
According to BOB, BitVM will be introduced in the third planned phase, enabling a secure BTC bridge with fraud proofs like Ethereum’s bridges and guaranteeing safe BTC deposits enforced by Bitcoin nodes.
In light of Arbitrum on Ethereum, he said, this guarantees customers bridging in BTC that their deposits are secure and that security is upheld by all Bitcoin full nodes—so long as at least one person is online to provide a fraud-proof.
Zamyatin mentioned a BOB fusion program the company uses to encourage adoption through dApps that enhance the TVL and number of users to entice more people to its platform.
The Build on Bob website states that there is currently over $279 million in total value locked on the platform.
In just four weeks, 33,000 users of BOB Fusion Season 1 generated 300 million TVL, according to Zamyatin. In less than 12 hours after its introduction today, BOB Season 2 saw an inflow of $64 million in on-chain TVL.
The goal is to simplify the deployment of Bitcoin into DeFi, according to Zamyatin. Enable Ethereum and EVM users to access Bitcoin assets, bringing together the two biggest web3 power-user ecosystems. Imagine Yearn Finance for Bitcoin.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
