Interlay, a London-based blockchain company, introduced a Bitcoin (BTC)-based cross-chain bridge on Polkadot (DOT). Named interBTC (iBTC), the bridge enables the usage of Bitcoin on non-native blockchains for decentralized finance (DeFi), cross-chain transfers and nonfungible tokens (NFTs), to name a few.
interBTC runs as a BTC-backed stablecoin, protected by a decentralized network of overcollateralized vaults, which according to Interlay, looks like MakerDAO’s DAI token, a stablecoin on the Ethereum blockchain.
The iBTC vaults utilize mixed-asset security to guarantee BTC reserves, making iBTC redeemable 1:1 with BTC over the Bitcoin blockchain. As a preventive step throughout unexpected vault failure, the security is set to get slashed and repay the BTC depositors. Sharing the idea procedure behind the effort, Interlay co-founder and CEO Alexei Zamyatin mentioned:
“Bitcoin is the driving force behind global crypto adoption, while Polkadot, Ethereum & co. is where technological innovation is happening. With interBTC, we combine the best of both worlds while preserving the trustless nature of Bitcoin.”
Interlay’s statement likewise highlighted Ethereum co-founder and Polkadot innovator Gavin Wood’s vision of producing a completely decentralized Bitcoin bridge on Polkadot, which was enabled by interBTC. Acala and Moonbeam will be the very first DeFi centers to host iBTC’s launching, which will be supported by a $1 million liquidity program provided by the Interlay network treasury and partner jobs.
The roadmap for iBTC includes being readily available on other significant DeFi networks, consisting of Ethereum, Cosmos, Solana, and Avalanche.
Related: DeFi market has space for development in Korea: 1inch co-founder — KBW 2022
Echoing Interlay’s interest in serving the DeFi and other crypto markets, DeFi aggregator 1inch Network eyes geographical growth in more recent jurisdictions. Speaking to Cointelegraph, DeFi aggregator 1inch Network co-founder Sergej Kunz exposed strategies to broaden its reach in Asia.
Kunz divulged that 1inch is actively seeking to partner with Asia-based Web3 business regardless of the little DeFi market in Korea and Asia, including that:
“Here, there are a lot of people who like gaming and a lot of things like that, so I think the DeFi market can grow a lot in South Korea.”
1inch’s main usage case as a decentralized exchange (DEX) aggregator includes recognizing swimming pools with the biggest liquidity, least expensive slippage and least expensive cryptocurrency exchange rates.