---
name: bitcoin-l2-bitlayer
description: |
  Bitlayer: Bitcoin L2 with ZK proof system, BTC staking, EVM
  compatibility. Emerging player 2024-2026.
  USE WHEN: evaluating Bitlayer for deployment, BTC staking products.
allowed-tools: Read, Grep, Glob
---

# Bitlayer

Bitcoin L2 with focus on **BTC staking** for yield, plus EVM
smart contracts.

## Architecture

- **ZK rollup** with state commitments to Bitcoin.
- **EVM compatibility** for Solidity contracts.
- **BTC staking** — bridged BTC earns yield via Bitlayer's protocols.
- **Federation peg** (planned BitVM upgrade).

## Position

Among the "BTCFi" Bitcoin L2s competing on yield products. TVL
moderate (early 2026).

## Use cases

- **BTC staking** for yield.
- **DeFi protocols** (lending, AMMs).
- **Bridge integrations** to Ethereum L2s.

## Limitations

- **Federation trust** until BitVM bridge.
- **Yield sources** sometimes unclear / require careful audit.

## See also

- [bsquared/SKILL.md](../bsquared/SKILL.md)
- [merlin/SKILL.md](../merlin/SKILL.md)
- [babylon/SKILL.md](../babylon/SKILL.md)
- [citrea/SKILL.md](../citrea/SKILL.md)
