Bybit Launches Bitcoin Yield On Solana Powered By Function And Kamino

Function, a Bitcoin infrastructure firm, has reported that its 1:1 Bitcoin-backed asset, FBTC, is now obtainable on Solana, extending a completely collateralized Bitcoin illustration to one of many trade’s highest-throughput blockchain networks. The rollout additionally introduces what’s described as the primary retail-focused Bitcoin vault on Solana, enabling customers to earn yield by means of FBTC through Bybit’s On-Chain Earn service.

The launch is accompanied by a collection of decentralized finance integrations meant to assist liquidity and value from the outset. Orca is offering swapping performance and low-slippage buying and selling, whereas Kamino is providing entry to roughly $500 million in stablecoin liquidity. 

“FBTC offers Bitcoin holders entry to yield throughout Solana’s vibrant ecosystem,” stated Leo Zhang, Contributor at Function, in a written assertion. “This integration marks one other step in direction of making Bitcoin extra composable and useful throughout DeFi,” he added.

FBTC operates utilizing LayerZero’s Omnichain Fungible Token normal, which permits it to be bridged to Solana by means of Stargate Finance at a assured one-to-one fee, no matter switch dimension and with out slippage. The asset is designed to remodel idle Bitcoin right into a productive on-chain instrument, with every token backed by an equal quantity of BTC and supported by publicly verifiable reserve addresses. The construction is meant to mix Bitcoin’s safety profile with the programmability of good contracts, enabling Bitcoin-backed liquidity to take part in trendy DeFi purposes with out compromising collateral backing.

“Function constructed FBTC with the transparency and institutional-grade threat requirements anticipated from belongings coming into Kamino’s credit score layer,” stated Mark Hull, Contributor at Kamino, in a written assertion. “With greater than half a billion {dollars} in stablecoin deposits obtainable, Kamino supplies deep liquidity for FBTC holders to faucet into from day one,” he added.

FBTC Goes Live On Solana With Full DeFi Support Across Orca, Kamino, LayerZero, Stargate, And Bybit

The broader ecosystem supporting FBTC at launch contains Solana because the host community, Orca for swapping and liquidity provision, Kamino for collateralized lending, LayerZero because the cross-chain messaging layer, Stargate because the bridging mechanism, and Bybit because the distribution channel for retail customers by means of its Bitcoin vault providing.

“Bybit’s On-Chain Earn makes it easy for tens of millions of Bybit customers to entry yield alternatives,” stated Jerry Li, Head of Financial Products and Wealth Management at Bybit, in a written assertion. “Through FBTC, we’re bringing collectively the safety of Bitcoin with the effectivity of Solana’s ecosystem, giving our group the instruments to make their BTC productive with out sacrificing publicity to the underlying asset,” he added.

The rollout supplies a number of entry factors for customers, together with bridging FBTC to Solana through Stargate, utilizing FBTC as collateral on Kamino to borrow stablecoins, and accessing curated yield methods by means of Bybit’s On-Chain Earn. Together, these elements are positioned as a part of an effort to combine Bitcoin extra deeply into decentralized finance whereas sustaining full reserve backing and cross-chain performance.

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