OP_NET Activates Smart Contracts on Bitcoin's Base Layer
A new protocol, OP_NET, went live on March 19, 2026, activating smart contract functionality directly on the Bitcoin mainnet. The system allows for the creation of decentralized applications and financial services by embedding contract data into standard Bitcoin transactions. This approach bypasses the need for sidechains, custodial bridges, or wrapped assets like wBTC, which have historically introduced counterparty risk for Bitcoin holders seeking DeFi yield.
OP_NET's architecture uses a network of nodes to scan Bitcoin blocks for contract-related data and execute the logic. This process is the first indexing protocol to feature a consensus mechanism between indexers without requiring a separate gas token; all transaction fees are paid in Bitcoin. This design allows users to interact with DeFi applications directly from their wallets, maintaining full control over their assets.
Connect your BTC wallet, make a trustless swap, and your Bitcoin stays Bitcoin. This is what native DeFi on Bitcoin actually looks like.
— Chad Master, Co-founder of OpNet
'SlowFi' Model Leverages Bitcoin's 10-Minute Blocks
Instead of competing on speed, OP_NET embraces Bitcoin's 10-minute block confirmation times as a core feature of its "SlowFi" model. The founders argue that this inherent slowness creates "structural exit friction," making liquidity stickier and preventing the rapid "farm-and-dump" cycles common on faster blockchains. This design is intended to foster a more durable environment where capital remains in protocols longer, allowing for more sustainable value creation.
Co-founder Chad Master compared the launch to a replay of Ethereum's "2020 DeFi Summer," but argued the environment on Bitcoin is more robust due to this natural friction. The protocol aims to attract long-term capital by creating a system less susceptible to panic exits and short-term speculative cycles, turning what is often seen as a limitation into a strategic advantage for building a stable DeFi ecosystem.
Initial DeFi Stack Launches With OP-20 Token Standard
The mainnet activation includes an initial suite of DeFi tools operating on Bitcoin's Layer 1. Developers can now issue new assets using the OP-20 token standard and deploy smart contracts for trading and yield generation. The initial ecosystem features MotoSwap, a decentralized exchange for trading BTC and OP-20 tokens, alongside staking contracts for creating yield farms.
Looking ahead, the OP_NET team is planning a major stablecoin integration for early Q2 2026. This will be enabled by the OP-20S extension standard, a key milestone expected to significantly expand the utility and capital efficiency of Bitcoin-native DeFi. This move signals a clear roadmap to build a comprehensive financial ecosystem directly on top of Bitcoin's secure base layer.
