Bitcoin’s biggest DeFi drawback under attack as OpNet unlocks smart contracts on mainnet

Bitcoin’s biggest limitation is being challenged as OpNet brings native, yield-generating DeFi directly to the Bitcoin mainnet.

Make us preferred on Google

What to know:

• Bitcoin’s biggest limitation is being challenged as OpNet brings native, yield-generating DeFi directly to the Bitcoin mainnet, without requiring bridges or wrapped BTC.
• The new protocol enables smart contracts, token launches and trading on Bitcoin's layer-1 blockchain, allowing users to put BTC to work while retaining full custody.
• By embracing Bitcoin’s slower design, OpNet introduces a “SlowFi” model aimed at creating stickier liquidity and a more sustainable DeFi ecosystem.

Bitcoin’s BTC$69,925.80 biggest limitation just got shattered. A new protocol went live Thursday, making it simple to put the largest cryptocurrency directly to work in powerful, yield-generating strategies within the booming world of decentralized finance (DeFi).

OpNet, a new smart-contract protocol, was activated on the Bitcoin blockchain, marking the arrival of DeFi-powering smart contracts that run directly on Bitcoin’s foundational layer. This keeps traders' bitcoin on Bitcoin's mainnet through standard transactions with BTC as the only fee token.

DeFi powers lending and borrowing activities that allow token holders to earn additional returns on their coin holdings. Holders of tokens native to smart-contract blockchains like Ethereum have always been able to access DeFi seamlessly, because the blockchain itself hosted most of the DeFi industry.

But the promise of DeFi came with a catch: it was closed to bitcoin. Bitcoin owners had to adopt strategies such as wrapping BTC with centralized services like Bitgo or Coinbase, using bridges to move assets to Ethereum or other chains, or depositing into custodial lending platforms to access the industry. Each step introduced counterparty risks that contradicted Bitcoin's core principle of trustless, self-sovereign money.

OpNet's mainnet debut claims to solve that issue and represents the first time users can access real DeFi applications, such as swapping, staking and token launches, without bridges, wrapped BTC or leaving Bitcoin's base layer, potentially eliminating the security risks and custody issues that have plagued previous Bitcoin DeFi attempts.

All users need to do is connect their wallets to DeFi applications, keeping their bitcoin as it is and maintaining full control over their assets.

"Every OpNet transaction is just a Bitcoin transaction. Users are never doing anything but making Bitcoin transactions," Chad Master, a co-founder of OpNet, said in an interview with CoinDesk. "Connect your BTC wallet, make a trustless swap, and your Bitcoin stays Bitcoin. This is what native DeFi on Bitcoin actually looks like.”

The protocol turns Bitcoin DeFi seamless by embedding contract bytecode, parameters and execution data directly into standard Bitcoin transactions. These are then confirmed by Bitcoin miners, ensuring that decentralized applications operate with their execution and state immutably anchored to Bitcoin’s base layer.

Debuts with DeFi stack and OP-20 standard

OpNet's mainnet activation includes a live DeFi stack running on Bitcoin layer 1. The initial ecosystem enables permissionless smart-contract deployment and focuses on trading, yield generation and native asset issuance.

That allows developers to introduce tokens under the OP-20 standard and build DeFi applications that settle directly to Bitcoin's base layer.

Users can access MotoSwap, a decentralized exchange for swapping BTC and OP-20 tokens directly on Bitcoin. The platform includes NativeSwap's two-phase execution model designed to handle Bitcoin's slower block times, and staking contracts that let users create yield farms for new assets.

The SlowFi embrace

While other blockchains and protocols yearn for speed, OpNet views Bitcoin's inherent slowness, characterized by 10-minute block times and L1 congestion dynamics, as features, not bugs, calling it “structural exit friction.”

“This is where the SlowFi thesis becomes real: slower blocks, higher fees during congestion, and capital that stays in protocols long enough to actually build value,” Chad Master said. He argued that this friction makes liquidity stickier, preventing “panic exits” and fostering a more durable DeFi cycle where protocols have time to stabilize and iterate.

Master likened the debut to a replay of a foundational era in crypto:

"We’re basically running back 2020 Ethereum DeFi Summer play-by-play on Bitcoin Layer 1 … But this time, the environment is better. Bitcoin’s 10-minute blocks create natural exit friction that sustains liquidity longer.” This suggests a more robust and sustainable DeFi ecosystem, less prone to the “farm-and-dump” cycles seen on faster chains.

The OpNet team also signaled major stablecoin integration on Bitcoin via the OP-20S extension standard as a key milestone for early Q2 2026, promising to further expand the utility of Bitcoin-native DeFi.

More For You

Venus’ XVS token plunges 9% as exploit leaves protocol with bad debt

The exploit, which occurred on March 16, didn’t appear to impact XVS prices until analysis showed major holders moving large amounts to exchanges.

What to know:

• The Venus protocol was exploited on March 16, resulting in $2.15 million in bad debt and a 9% drop in the value of its governance token XVS.
• The attacker manipulated the THE token market, borrowed assets, and sold THE, causing a 17% price drop and liquidations, with estimated profits of $3.7-5.8 million.
• Venus responded by pausing THE borrows and adjusting collateral values, and is now considering how to cover the loss through its risk fund.

Coinbase faces a multibillion-dollar threat from D.C. but a 'rewards' loophole could protect its stablecoin revenue

1 minute ago

Crypto.com cuts 12% of staff as it integrates AI across the business for efficiency

16 minutes ago

Capital is shifting into digital dollars as bitcoin wilts

33 minutes ago

Venus’ XVS token plunges 9% as exploit leaves protocol with bad debt

43 minutes ago

Bitcoin slips to $70,000 as oil surge, Fed pause weigh on risk assets

1 hour ago

Bitcoin’s quantum threat is real, but far from an existential crisis, Galaxy says

1 hour ago

SEC approves Nasdaq's move to support tokenized securities trading

15 hours ago

Bitcoin OGs dump over $100 million in BTC after hawkish Fed dents rate cut hopes

4 hours ago

Forget market hours: Leading ETP firm just opened 24/7 liquidity for tokenized stocks, gold and money market funds

5 hours ago

Sam Bankman-Fried's bankrupt exchange FTX set to repay creditors $2.2 billion this month

16 hours ago

Bitcoin, unusually, outperforms gold as hawkish Fed, oil price fuel risk-off sentiment

1 hour ago

Fairshake's $10 million Illinois misfire marks first big hitch in crypto political surge

15 hours ago

In this article

BTCBTC$69,925.80◢4.15%