Sui, another layer-1 blockchain, is increasing its focus on Bitcoin-based decentralized finance (DeFi). It is collaborating with Stacks, a layer-2 network constructed atop of Bitcoin. This action is part of its efforts to expand its BTCfi ecosystem and offer Bitcoin holders new ways to use their holdings. Sui builds better Wrapped Bitcoin (WBTC) support with the Sui Bridge 🧱 It opens up the Bitcoin user base to DeFi and yield-bearing opportunities via assets such as sBTC and wBTC, creating possibilities for a vibrant ecosystem of custodial bridges, synthetic derivatives and trust-minimized assets. Bitcoin-related assets are now responsible for more than 10% of Sui’s total value locked (TVL). While building BTCfi, this growth proves the blockchain’s hegemonic position in the BTCfi space.
Strategic Focus on BTCfi
BTCfi’s strategic importance for Sui this year was noted by co-founder and CPO Adeniyi Abiodun.
"BTCfi is a key strategic priority this year." - Adeniyi Abiodun
Abiodun further explained that Sui’s international goal with Bitcoin is to broaden the asset’s use case, so users can do more than just hold Bitcoin. The integration with Stacks and the continued development of sBTC are important pieces to that strategy.
Sui’s sBTC creates decentralized pathways for Bitcoin holders to earn rewards, collateralize their assets and participate in DeFi without dependency on centralized intermediaries. sBTC is maintained by a trustless network of decentralized signers. This method of minting is what differentiates it from wrapped assets such as wBTC, which are backed by third-party custodians.
Integration with Stacks and Bitlayer
Sui’s integration with Stacks is focused on opening up new opportunities for Bitcoiners to turn their assets into productive assets. This partnership makes it possible for Bitcoin holders to use their BTC within DeFi on Sui without relying on centralized custodians.
"This integration between Sui and Stacks will enable Bitcoin holders to deploy their BTC into DeFi through Sui without any reliance on centralized custodians." - Rena Shah
Sui also made headlines by partnering with Bitlayer to release the first trust-minimized BitVM bridge on Sui. As a result, this bridge will further increase the security and trustlessness of Bitcoin paradigm transactions on the Sui network.
Sui's BTCfi Ecosystem
Sui’s BTCfi ecosystem has a number of standout integrations. These products give individuals and institutions unprecedented flexibility to get the most from their Bitcoin holdings. These choices range from custodial bridges to synthetic derivatives to trust-minimized assets—all in the same user interface.
With Sui, users can deploy WBTC into decentralized exchanges such as Bluefin, or lending protocols like Suilend & Navi. This enables Bitcoin holders to get in on the fun and speculation of the broader DeFi movement and earn yield on their assets.
"Participating on Bitcoin directly is still limited. Having an L1 like Sui recognize sBTC on Sui means all holders can earn yield and stay true to Bitcoin’s trustless ethos, wherever they choose to do DeFi." - Rena Shah
Sui's approach to BTCfi is designed to enable Bitcoin holders to earn yield while staying true to Bitcoin's trustless ethos. Sui provides users with several unique opportunities to unlock their Bitcoin assets in DeFi. The purpose of this strategy is to attract a broader pool of Bitcoin holders to the platform.
