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name: bitcoin-l2-bsquared description: | B² Network (BSquared): hybrid ZK + optimistic Bitcoin L2 with EVM compatibility. Live since 2024; DeFi TVL is down ~97% from its December 2024 peak as of September 2026. USE WHEN: evaluating B² for deployment, integrating with their bridge, comparing Bitcoin L2 options. allowed-tools: Read, Grep, Glob

B² Network (BSquared)

Bitcoin L2 with EVM compatibility, ZK proof rollup combined with optimistic challenge mechanism. Deployed 2024. Mainnet is still live as of September 2026, but DeFi TVL is down ~97% from its December 2024 peak — see Position below.

Architecture

• EVM execution (Solidity contracts).
• ZK proofs for state validity.
• Optimistic challenges as backup verification.
• Bridge: federation + planned BitVM upgrade.
• Native token: B²BTC (peg-style) + B² (governance/utility).

Use cases

• DeFi: yield protocols, lending, AMMs.
• Bitcoin staking-like products: bridged BTC earns yield in B² ecosystem.
• NFTs / Asset issuance.

Position

One of multiple "Bitcoin L2" projects competing for TVL in 2024-2025, and still smaller than Stacks, Rootstock and Merlin — but the absolute scale has changed by orders of magnitude since then. Chain DeFi TVL, DefiLlama, 16 September 2026:

Chain	DeFi TVL
BSquared	~$2.6M
Merlin	~$8.9M
Stacks	~$77.7M
Rootstock	~$79.2M

BSquared peaked at ~$103.3M on 7 December 2024 and was ~$89.1M on 1 January 2025, so this is a ~97% drawdown from peak. The contraction is sector-wide rather than BSquared-specific — between 1 January 2025 and 16 September 2026 Bitlayer went ~$361M -> ~$0.46M and Merlin ~$169M -> ~$8.9M. Treat every figure here as a dated snapshot, not a fact: re-check https://defillama.com/chain/BSquared before quoting.

Limitations

• Federation trust for current bridge.
• EVM compatibility but smaller dApp ecosystem.
• Unclear path to fully trustless bridging.

See also

• strata/SKILL.md
• citrea/SKILL.md
• bitlayer/SKILL.md
• merlin/SKILL.md