The hVM enables true DeFI in the Bitcoin blockchain.

TL;DR

Hemi Virtual Machine (hVM) enables Bitcoin to participate in DeFi by integrating Ethereum-like smart contracts directly with Bitcoin, bypassing the need for external bridges or oracles. This allows Bitcoin to be used as collateral, settle transactions natively, and enhance liquidity across DeFi platforms, while preserving Bitcoin’s security and decentralization. Hemi also expands Bitcoin’s utility beyond DeFi, offering staking, borrowing, lending, and other features within its ecosystem.

The openness of DeFi platforms fostered innovation, attracting users seeking greater control over their assets and offering potential yield beyond the scope of what traditional finance platforms could offer. Today DeFi isn’t solely relegated to Ethereum, and has expanded to other networks, like Solana, Binance Smart Chain, and Flow. 

However, none of these networks have successfully captured Bitcoin’s store of deep value. On the network level, Bitcoin’s bytecode proves a limiting factor for the deployment of DeFi platforms while its lack of programmability forces users to attempt workarounds that are decentralized and, needless to say, problematic.

Expanding Bitcoin to DeFi with the Hemi Virtual Machine

Enter the Hemi Virtual Machine (hVM), a complete Ethereum Virtual machine within that runs a fully indexed Bitcoin node. This enables any Solidity-based smart contracts and, by extension, apps on Hemi to access Bitcoin data without relying on external bridges or third party oracles. 

The hVM allows developers to engineer DeFi platforms that harness Bitcoin’s deep value as a means of maintaining market liquidity, and ensuring the decentralization and level of security with which Bitcoin is synonymous. Lending protocols, automated market makers, or yield-generating platforms, can now utilize Bitcoin as usable collateral and settle transactions natively with the hVM.

Bitcoin on Hemi remains fully sovereign, avoiding the centralized pitfalls of other bridges that may be exploited or hacked. This protocol-level integration preserves the integrity of both Bitcoin and Ethereum ecosystems, allowing the native currencies of both networks to reinforce one another on DeFi platforms.

Hemi Brings Bitcoin Beyond DeFi

Hemi allows Bitcoin to transcend the limitations of its bytecode and to act as an active trading pair in DeFi networks. But DeFi platforms aren’t the only place Hemi extends Bitcoin. On day one, users can stake, restake, borrow, lend, as well as transact natively with Bitcoin with the numerous partner platforms integrated within the Hemi ecosystem.