Hemi Launches hemiBTC Liquidity Pools on SushiSwap V3, Offering Enhanced Yield Opportunities

Hemi, a modular Layer-2 protocol designed to bridge Bitcoin and Ethereum, has announced the launch of hemiBTC liquidity pools on SushiSwap V3, offering users the ability to earn rewards through Merkl.xyz. The initiative aims to unlock greater utility for Bitcoin in decentralized finance (DeFi) by providing a trust-minimized alternative to wrapped Bitcoin solutions. This development allows liquidity providers to actively utilize their assets within the Hemi ecosystem.

"Your liquidity doesn't have to sit idle," stated Hemi in a recent tweet, encouraging users to "Plug in and start earning today." The announcement highlights Hemi's commitment to enabling programmable Bitcoin, allowing the asset to participate in yield-generating activities without compromising its underlying security or requiring centralized custodians.

hemiBTC distinguishes itself from Wrapped Bitcoin (WBTC) by employing decentralized tunnels for cross-chain transfers, minimizing reliance on trusted third parties. While WBTC uses a centralized custodian to back its tokens, hemiBTC is minted trustlessly and on-chain, maintaining Bitcoin's native integrity within an EVM-compatible environment. This approach aligns with the core principles of decentralization, offering a more secure and scalable foundation for Bitcoin in DeFi.

Hemi, co-founded by former Bitcoin core developer Jeff Garzik and Proof-of-Proof inventor Maxwell Sanchez, has secured substantial funding, including a $15 million growth round in August 2025 with participation from YZi Labs (formerly Binance Labs) and Republic Digital. The network launched its mainnet in March 2025 and has since integrated with numerous DeFi protocols. The collaboration with SushiSwap, a leading decentralized exchange, and Merkl.xyz, a platform known for distributing rewards, signifies a strategic expansion of hemiBTC's reach and utility within the broader DeFi landscape.

The introduction of these pools is expected to attract Bitcoin holders seeking to generate yield on their assets, leveraging Hemi's architecture that combines Bitcoin's security with Ethereum's programmability. Users providing liquidity to hemiBTC pools on SushiSwap V3 can now earn boosted rewards, further incentivizing participation in the growing Hemi ecosystem and its vision for a "supernetwork" that seamlessly integrates Bitcoin and Ethereum.