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Bitcoin layer-1 smart-contract platform OpNet debuts with native DeFi stack

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The Protocol: New Ethereum scaling plans

Bitcoin’s 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.

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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.

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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.”

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“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.

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Crypto World

US Treasury To Give Crypto Industry Cybersecurity Intelligence at ‘No Cost’

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United States, Cybercrime, Cybersecurity, Hacks

The US Department of the Treasury’s Office of Cybersecurity and Critical Infrastructure Protection (OCCIP) announced on Thursday that it is expanding its cybersecurity threat identification program to include digital asset companies.

Blockchain companies that choose to take part in the program will receive the same cybersecurity threat intelligence provided to traditional financial institutions at “no cost,” according to the Treasury’s announcement.  

“Cyber threats targeting digital asset platforms are growing in frequency and sophistication,” Cory Wilson, the deputy assistant secretary for cybersecurity at the OCCIP, said. 

United States, Cybercrime, Cybersecurity, Hacks
Losses from crypto hacks between 2022 and 2025. Source: TRM Labs

The initiative fulfills policy recommendations from US President Donald Trump’s administration, outlined in its July 2025 report, titled “Strengthening American Leadership in Digital Financial Technology.” 

Cointelegraph reached out to the Department of the Treasury but did not receive a response by the time of publication.

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The initiative reflects the ongoing challenge of countering evolving cybersecurity threats impacting blockchain protocols and their users, as financial losses from decentralized finance (DeFi) platform hacks alone reached nearly $169 million in the first quarter of this year. 

Related: Google Threat Intel flags ‘Ghostblade’ crypto-stealing malware

Foreign intelligence operatives continue infiltrating crypto projects and companies

Crypto projects and users are increasingly subject to evolving cybersecurity threats, which can be carried out by social engineering or infiltration by state-affiliated hackers, including the North Korean-linked Lazarus Group.

Drift Protocol, a decentralized cryptocurrency exchange, suffered a $280 million exploit this month at the hands of suspected North Korean-affiliated hackers.

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The Drift team physically met the malicious actors at a “major” crypto industry conference and interacted with them for months after the initial meeting, according to a preliminary incident report from Drift Protocol.

United States, Cybercrime, Cybersecurity, Hacks
Source: Nic Puckrin

During the months-long interaction, the hackers deployed crypto-stealing malware on the Drift team’s developer machines, which was activated in the April exploit.

The individuals who first approached the Drift team at the industry conference were not North Korean nationals, according to the report.

The Seals911 team, a group of blockchain cybersecurity specialists, said with “medium-high confidence” that the attack was likely carried out by the same hacker group responsible for the October 2024 hack of the Radiant Capital DeFi platform.

Magazine: Lazarus Group’s favorite exploit revealed — Crypto hacks analysis

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