Bitcoin DeFi Is Taking Root on Sui—Here’s How It Works

Bitcoin is widely considered the safest and decentralized digital property. But for all power as a value trade, it is historically offering little financial utility services due to network limitations, while the price of ballooning has prevented them from being viewed as daily spending money.

Bitcoin defined, also known as BTCFI – an expression relating to decentralized applications for finance built on Bitcoin“That shifts that.” Sui is one of several blockchain layers-1 that now support a functionality based on bitcoin, along with similar Saltworks,, Suitableand Cardano.

“Most of us start a journey in digital property as Bitcoiners, attracted to BTC as a safe and valuable property of a blue chip-but until recently Bitcoin’s usefulness is primarily limited to value trade.” said Adhenii Abimanyco -founder and CPO in Mysten Labs, the original team behind the SUI network.

He added that the SUI allows for the approach to the Dead -UI awards for Bitcoin users, so they can “convert to passive posture” BTC.

What does bitcoin define on sui looks like

Sui’s BTCFI Ecosystem now includes several different integrations. First, there is a wrapped bitcoin (WBTC), brought through the Sui bridge. This version of Bitcoin, forged on Ethereum And they manage guardians, it offers the fastest path to the definition of the Sui app. Customers can arrange their WBTC in decentralized exchanges such as bluefin or borrowing protocols such as suilenda and navities. While wbtc comes with Compromise trustHis liquidity and infrastructure are tested in the fight.

Then it is LbtcBitcoin derivative who issued a Lombard Finance. It is designed for users who want to put their BTC to work in yield strategies, with features such as excessively chopped forging and integration into fixed income products. LBTC offers flexibility with reducing some dependence on bridges with cross -chains.

In recent times, Sui has expanded its BTCFI ecosystem, integrating with the Bitcoin Layer-2 network series. This collaboration aims to enable Bitcoin owners to participate in the borrowing, borrowing, trading and services of fluid investment, usually traditionally limited to chains such as Ethereum or Solane or wrapped version of bitcoin on different chains.

Abiodun said that the property associated with Bitcoin consists of more than 10% of the total value locked (or TVL) on SUI, which he said “tells us that there is a demand for Bitcoin to do more than just sitting on the side.”

What is SBTC on Sui?

SBTC indicates BTC bundles and is 1: 1 Bitcoin supported on the Stacks Bitcoin Layer-2 network, which allows the decentralized movement of BTC UI outside the Bitcoin layers without relying on centralized guards. Unlike wrapped property such as WBTC, which depends on third -party guardians to hold and betray tokens, SBTC uses a decentralized network of signatories.

These signatories are approved by SBTC forging and buying through the mechanism of the threshold consensus – usually requires 70% of the approval – for maintenance of security and vibrant protocols. The goal is to provide the owners of Bitcoin way to approach the protocols with the preservation of the confidence of the minimized ethos from Bitcoin.

Abiodun said SBTC enables Bitcoin owners to earn awards and participate in definitely using their bitcoin, without addiction to centralized intermediaries. It also provides developers with a reliable, scalable approach to Bitcoin liquidity, allowing them to create more sophisticated and user applications.

“We are looking for potential integrations that will improve the experiences of users and developers in a safe, fast and reliable environment,” Abiodun said, adding that Stacks are part of the “growing list” of allies, including Babylon, Redstone, Lombard, Cubist and Satlayer working on “help full potential Bitcoin”.

On the side of the pile, the intention is to bridge Bitcoin into other ecosystems in a way that remains true to his ethos of decentralization.

“This integration between the SUI -AI Stacks will allow BTCOin owners to implement their BTC in the definition through the sui without any relying on centralized guardians,” said Rena Shah, her contribution to the Stacks BD work group.

Through this integration and SBTC, Stacks aims to help paving new ways to Bitcoiners to keep the property productive.

“Participation in Bitcoin is still limited,” Shah added. “To have L1 like Sui -a recognizes SBTC on Sui means that all owners can earn a yield and remain faithful to Bitcoin’s helpless ethos, wherever you decide to do defines.”

Bitcoin defined on other chains

Sui is not the only network building around Bitcoin. Other chains are also racing to unlock the BTC service program, but with different degrees of decentralization and usability.

Cardano, for example, has experimented with Bitcoin wrappers with synthetic agents that could enable BTC owners to participate in Define through the Cardano -ov Extended UTXO model.

To Cardano, Bitcoinos Improves the expanded UTXO (Eutxo) model, allowing BTC interaction with Cardan’s smart contracts. This allows the owners of Bitcoin to use their BTC in defined activities such as borrowing or investing on cardano protocols, such as those launched by Anetabtc.

Solana, meanwhile, supports WBTC via Ethereum bridges, with integration through decentralized exchange (or dexes) such as Jupiter and ORCA. But his bitcoin liquidity is relatively thin compared to the property based on the ETH.

What separates the sui is the attempt to combine these models, offering guardianship bridges, synthetic derivatives and property minimized in one environment.

APTOS and SUI are blockchains layer-1 built with a programming language of Move and progress BTCFI. However, they differ in their technical approaches and focus.

APTOS emphasizes defined defined through integrations such as XBTC (via OKX). Its relationships, such as the B² network, allow reliable Bitcoin bridges, which makes it a center for definite protocols such as Panora Exchange and Aries Markets. APTOSE environment priority gives the liquidity of bitcoin to borrow, replace and invest.

Expanding the use of bitcoin

The use of bitcoin directly on the chain remains limiting for most users. Native BTC transactions do not support smart contracts, and developing applications directly on Bitcoin is still difficult, despite progress from projects such as Plain and Bitvm.

Abiodun said Sui “expanded the Bitcoin service program, allowing users to move beyond posture.”

The growing BTCFI category aims to bring bitcoin to active use without endangering decentralization. Sui -is an approach – through SBTC, WBTC, LBTC and other assets – shows that multiple routes to BTC service program can coexist within one ecosystem. Sui also recently announced a Collaboration with Bitlayer To initiate “the first confidence of the minimized Bitvm Bridge” on Sui.

And obviously is even more, and Abiodun said that “BTCFI is a key strategic priority this year” for the SUI ecosystem.

Edited Andrew Hayward