"BOB(BOB) Aims to Position Bitcoin(BTC) as DeFi Central Hub, Targeting Ethereum(ETH) TVL Supremacy in Two Years"

### [Bitcoin (BTC): Unlocking the Untapped Potential in DeFi](https://api.blockmedia.co.kr/binance/outlink/?path=bitcoin) **[Bitcoin (BTC)](https://api.blockmedia.co.kr/binance/outlink/?path=bitcoin)**, dominating over 60% of the global cryptocurrency assets, remains underutilized in decentralized finance (DeFi). Despite its significant market presence, only 0.2% of Bitcoin’s $1.7 trillion market capitalization is engaged in DeFi, compared to approximately 35% of **[Ethereum (ETH)](https://api.blockmedia.co.kr/binance/outlink/?path=ethereum)**. Bridging this gap could unlock a new market worth up to $500 billion. BOB, a Hybrid Layer-2 solution, has emerged as a potential technical bridge. Alexei Zamyatin, BOB's co-founder, predicts that "within 12 to 24 months, Bitcoin’s total value locked (TVL) in DeFi will outpace Ethereum." He added, "BOB is poised as the catalyst in this transformation." ### Hybrid Architecture Enables Bitcoin’s DeFi Integration BOB introduces a hybrid architecture to transform Bitcoin from a passive store of value into an active asset within DeFi ecosystems. While Bitcoin has excelled as a secure and scarce asset, its DeFi integration faced practical and security challenges. BOB addresses this by leveraging staked Bitcoin on **[Babylon (BABY)](https://api.blockmedia.co.kr/binance/outlink/?path=babylon)** to establish the Bitcoin Security Network (BSN), applying Bitcoin’s finality to all transactions and bridging processes. Operating as a rollup on the **[Optimism (OP)](https://api.blockmedia.co.kr/binance/outlink/?path=optimism-ethereum)** Superchain, it enables interoperability with Ethereum-based dApps like **[Uniswap (UNI)](https://api.blockmedia.co.kr/binance/outlink/?path=uniswap)** and **[Aave (AAVE)](https://api.blockmedia.co.kr/binance/outlink/?path=aave)**. Currently, BOB’s TVL exceeds $250 million, ranking it sixth on L2beat. ### BitVM: A Trustless Bridge for Bitcoin DeFi A significant challenge in integrating Bitcoin with DeFi is ensuring secure asset bridging. Traditional multi-signature (multisig) methods, dependent on multiple keyholders, entail risks like insider manipulation or key mismanagement. BOB mitigates these risks using a BitVM-based bridge. BitVM executes programs off-chain, verifying them on-chain only in disputes. This setup ensures secure Bitcoin transactions with just one honest node present. Co-developed by Babylon and Fiamma, the bridge enhances security by leveraging Bitcoin’s inherent strengths without data availability issues. ### Creating a Virtuous Cycle for Bitcoin in DeFi BOB has designed an economic model to make Bitcoin a key asset in DeFi. Bitcoin liquidity staking tokens (LSTs) generate fees when staked, distributed to Bitcoin stakers. This incentive boosts deposits, increasing TVL and fostering a self-reinforcing cycle. This model pivots Bitcoin from merely storing value to generating yields, becoming a core driver of the BOB DeFi ecosystem. ### S-Curve Adoption: Accelerating Bitcoin’s DeFi Momentum BOB envisions Bitcoin’s DeFi adoption along an S-curve trajectory. Early adopters, taking on higher risks, will lead the initial phase. As stability and profitability are validated, mainstream users will follow, accelerating adoption. BOB aims to expedite this transition with a hybrid approach combining Bitcoin’s security and Ethereum-based DeFi’s user experience. The BOB app enhances usability with its "Earn" feature, allowing users to stake Bitcoin liquidity tokens, participate in hybrid Bitcoin vaults, or leverage strategies via Euler ($EUL)—all with a single click. Base yields are around 4% annually, with additional rewards through the "BOB Rise" campaign. ### Looking to 2025: The Year of Bitcoin DeFi? BOB’s mission is to enable Bitcoin holders to engage with DeFi without transferring assets. By offering a secure, scalable, and user-friendly platform, it aims to bridge the gap between Bitcoin and DeFi, a previously daunting divide. "Ethereum may never surpass Bitcoin, but Bitcoin DeFi can, and will, surpass Ethereum DeFi," Zamyatin asserted. As 2025 approaches, all eyes are on whether Bitcoin DeFi can truly achieve this anticipated breakthrough.