Key Points
- Hemi, a Bitcoin Layer-2 protocol, has garnered over $260 million in total value locked ahead of its mainnet launch.
- Despite recent outflows in the Bitcoin L2 landscape, Hemi has seen an increase in deposits on its private mainnet network.
Hemi, an innovative Bitcoin (BTC) layer-2 protocol, has successfully locked in over $260 million in total value before its mainnet launch. This protocol was developed by Jeff Garzik, a pioneer in the blockchain development field.
Understanding BTC L2s
BTC L2s operate as sidechains that are linked to Bitcoin’s blockchain. Protocols like Hemi, along with Core, Bitlayer, and Stacks, aim to leverage decentralized finance for Bitcoin via staking and yield generation.
The project’s native explorer data indicates an increase in deposits, which includes around 2,686 in liquid BTC derivatives and approximately 3,207 in Ether (ETH) staking tokens.
Hemi’s Role in the Crypto Landscape
This total value locked (TVL) will be utilized on Hemi’s decentralized exchanges and lending protocols. It will provide initial liquidity to facilitate trading, borrowing, staking, and yield farming for popular assets within the Bitcoin and Ethereum ecosystems.
Despite the recent decline in the Bitcoin L2 landscape, Hemi’s user deposits have been on the rise. Core, the leading BTC L2, reported a 12% decrease in TVL over the past week, according to DefiLlama data. Other major players, like Bitlayer, BSquared, Rootstock, AILayer, and Stacks, also experienced a drop in user balances amid a widespread market correction.
Hemi’s $260 million, as reported by the team, would place the L2 among the top five protocols in the space. Interestingly, these funds were locked in Hemi’s private mainnet while preparations for a public mainnet launch were underway. The team has yet to announce a tentative launch date.
The launch is progressing as planned, and the testnet incentives will end shortly before the public mainnet launch. Once the mainnet is live, the first round of incentives will commence. The token generation event (TGE) is still scheduled to occur four to six weeks after the mainnet release.