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While Bitcoin L2s recently witnessed outflows, a new protocol called Hemi amassed more deposits on its private mainnet network.

Hemi, a Bitcoin (BTC) layer-2 protocol founded by early blockchain developer Jeff Garzik, has achieved over $260 million in total value locked ahead of its mainnet launch. 

BTC L2s function as sidechains connected to Bitcoin’s blockchain. Protocols like Hemi, Core, Bitlayer, and Stacks seek to unlock decentralized finance for BTC through staking and yield generation.

Data from the project’s native explorer showed an uptick in deposits, comprising some 2,686 in liquid BTC derivatives and about 3,207 dominated in Ether (ETH) staking tokens.

This TVL will be deployed onto Hemi’s DEXes and lending protocols to provide Day One liquidity to facilitate trading, borrowing, staking, and yield farming for popular assets across the Bitcoin and Ethereum ecosystems.

Hemi team

Hemi’s claims of surging user deposits contrasted outflows in the Bitcoin L2 landscape. Core, the dominant BTC L2, recorded a 12% drop in TVL over the past week, per DefiLlama data. Other market frontrunners, like Bitlayer, BSquared, Rootstock, AILayer, and Stacks, also noted decreased user balances as markets weathered a broad correction.

Hemi’s $260 million reported by the team would rank the L2 among the top five protocols in the space. Notably, the funds were locked in Hemi’s private mainnet while plans for a public mainnet launch advanced. The team has not shared a tentative date for its launch.

The launch remains on track, and the testnet incentives will conclude shortly before the public Mainnet launch. Once Mainnet is live, the first round of incentives will begin. The token generation event (TGE) is still planned for four to six weeks after the Mainnet release.

Hemi blog