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Mintlayer x Kylix: Unlocking Native Bitcoin Lending and Cross-Chain DeFi
Bitcoin has long been the most secure and decentralized asset in the crypto space, but its utility in decentralized finance (DeFi) has been historically limited due to reliance on wrapped assets and centralized custodians. That’s about to change.
We’re excited to announce our partnership with Kylix, a cross-chain liquidity protocol that enables native Bitcoin lending and borrowing—without wrapped assets. By integrating with Mintlayer, Kylix will bring true decentralized finance to Bitcoin, allowing users to earn yield on their BTC and leverage their assets across multiple chains like Solana, Sui, and Polkadot.
Why This Matters: Native Bitcoin Lending Without Wrapping
Until now, most Bitcoin-based DeFi required BTC to be wrapped (e.g., wBTC, sBTC), which introduces custodial risk, counterparty dependencies, and security vulnerabilities. With Kylix’s native BTC lending markets, users can lend and borrow real Bitcoin directly, while benefiting from Mintlayer’s Atomic Swaps and Bitcoin-native architecture.
This means:
- No wrapped assets, no centralized intermediaries
- True on-chain lending & borrowing using native Bitcoin
- Cross-chain functionality: Borrow BTC against SOL, SUI, or DOT—and vice versa
- A seamless gateway connecting Bitcoin to DeFi on multiple chains
How Kylix & Mintlayer Work Together
Kylix is building a unified liquidity layer that removes the inefficiencies of fragmented DeFi markets. Instead of relying on bridges, Kylix natively connects liquidity across chains, allowing users to lend on one blockchain and borrow from another—all in a frictionless, secure environment.
With Mintlayer’s Atomic Swap-powered interoperability, Kylix users will be able to:
✅ Lend and borrow Bitcoin natively without wrapping
✅ Use Bitcoin as collateral for loans on other chains
✅ Access cross-chain liquidity markets without bridges
✅ Earn a yield on their BTC directly in a decentralized manner
By leveraging Mintlayer’s Bitcoin-native architecture, Kylix can tap into Bitcoin’s liquidity in a way that is fully decentralized and secure—empowering BTC holders to finally unlock the financial potential of their assets.
What’s Next?
Kylix is set to launch its Testnet and Canary Network in April, with full production going live in June 2025. This means that soon, Mintlayer users will have access to a fully functional Bitcoin lending market, allowing them to earn, borrow, and trade natively across multiple chains.
In addition to its Bitcoin lending markets, Kylix is also working on several other cutting-edge DeFi innovations, including:
- Collateral Marketplace
- Lending AI Agents
- Self-Repaying Loans
