Bitcoin DeFi App Sovryn to Deploy on Hybrid Layer 2 Network Build on Bitcoin – Unchained

Bitcoin’s most prominent DeFi app is integrating with a yet-to-launch Bitcoin layer 2 network known as Build on Bitcoin (BOB) in an effort to attract liquidity from Ethereum.

Earlier this week, a governance vote for Bitcoin decentralized finance (DeFi) protocol Sovryn resulted in the decision to deploy the app on new Bitcoin layer-two network Build on Bitcoin (BOB). 

Sovryn originally launched on the Ethereum Virtual Machine-compatible Rootstock sidechain in late 2020 and focuses on providing many of the DeFi use cases popular on Ethereum to a Bitcoin-focused user base. According to data from DeFiLlama, Sovryn currently has just under $78 million of total value locked (TVL) on its platform, making it the largest project on Rootstock by that metric.

Sovryn’s Move to BOB

BOB is self-described as a hybrid layer-two project built on top of both Bitcoin and Ethereum. The idea is to take advantage of Ethereum’s massive DeFi liquidity while simultaneously building out a layer 2 protocol on top of the Bitcoin blockchain itself. BOB is scheduled to launch on Bitcoin around the time of the upcoming halving, which is currently estimated to take place on April 20. In a post on X, BOB founder Alexei Zamyatin referred to Sovryn as the “OG of Bitcoin DeFi” and claimed it is “time to bring Ethereum DeFi users back to Bitcoin.”

“BOB is a unique creature — an Ethereum rollup that will be merge-mined with Bitcoin, merging the security and liquidity of the two ecosystems,” Sovryn contributor Edan Yago said on X. “BOB will be a bridge between the two largest ecosystems in the crypto space.”

Notably, Sovryn is also working on its own Bitcoin layer-two network, known as BitcoinOS, which they describe as a “public good” that will operate as a chain of interoperable Bitcoin rollups.

“Our overall goal is to build a world on Bitcoin—this means a Bitcoin native economy,” Yago told Unchained. “We are pushing forward technology (Bitcoin rollups and Bitcoin-native DeFi) to make this possible. Our goal is to bring crypto capital and users back to Bitcoin.”

Read more: Stacks’ Muneeb Ali On Why Bitcoin Is Exciting Once Again

Is It Time for ‘Bitcoin Season 2?’

Yago is not alone in his enthusiasm, as a number of other long-term Bitcoin proponents, such as Asymmetric General Partner Dan Held and Ordinals proponent Udi Wertheimer, are anticipating a so-called “Bitcoin season 2” to occur this cycle, in which much of the crypto development and activity found outside of the Bitcoin ecosystem finds its way back to the largest crypto asset network by market cap.

Read more: A New Era for Bitcoin Is Here, Whether Bitcoin Maximalists Like It Or Not

There has been an explosion in interest and development activity around various Bitcoin layer-two networks following the release of the BitVM whitepaper, which is believed to enable a two-way pegging mechanism similar to optimistic rollups on Ethereum. Having said that, many of these projects are still in their early stages and it’s unclear whether those in the Ethereum, Solana, and other crypto communities will ultimately make their way over to Bitcoin.