Interlay, a London-based blockchain company, has launched a cross-chain bridge based on Bitcoin (BTC) in Polkadot (DOT). The bridge, called interBTC (iBTC), allows Bitcoin to be used in non-native blockchains for decentralized finance (DeFi), cross-chain transfers and non-fungible tokens (NFTs), among others.
interBTC operates as a stablecoin backed by BTC, secured by a decentralized network of redundant collateral vaults, which, according to Interlay, is similar to MakerDAO DAI, a stablecoin on the Ethereum blockchain.
iBTC vaults use hybrid asset collateral to secure BTC reserves, making iBTC redeemable at a 1:1 ratio with BTC on the Bitcoin blockchain. As a precaution during an unexpected vault failure, collateral has been programmed to obtain coins and compensate BTC depositors. Alexey Zamyatin, co-founder and CEO of Interlay, shared the thought process behind the initiative:
“Bitcoin is the driving force behind global crypto adoption, while Polkadot, Ethereum & co. is where technological innovation happens. With interBTC, we combine the best of both worlds while preserving the unreliable nature of bitcoin.”
The Interlay announcement also highlighted the vision of Ethereum founder and Polkadot inventor Gavin Wood to create a fully decentralized Bitcoin bridge on Polkadot, made possible by interBTC. Acala and Moonbeam will be the first DeFi centers to host the debut of iBTC, which will be supported by a $1 million liquidity program provided by Interlay Network Treasury and partner projects.
The iBTC roadmap includes availability on other major DeFi networks, including Ethereum, Cosmos, Solana, and Avalanche.
Related Topics: DeFi Market Has Room to Grow in Korea: 1-inch Co-Founder – KBW 2022
Echoing Interlay’s interest in DeFi and other crypto markets, the 1-inch pooled DeFi network is looking to expand geographically into new jurisdictions. Speaking to Cointelegraph, DeFigregator 1inch Network co-founder Serge Koons revealed plans to expand its reach in Asia.
Koons revealed that 1inch is actively looking for a partnership with Asia-based Web3 companies despite the small DeFi market in Korea and Asia, adding that:
“Here, there are a lot of people who love games and a lot of things like that, so I think the DeFi market can grow a lot in South Korea.”
The basic 1-inch use case as a decentralized exchange (DEX) aggregator involves identifying pools with the most liquidity, the least slippage and the cheapest cryptocurrency exchange rates.