On Polkadot, London-based blockchain company Interlay showed off a cross-chain bridge based on Bitcoin (BTC) (DOT). The bridge, called interBTC (iBTC), lets Bitcoin be used on non-native blockchains for things like decentralized financing (DeFi), cross-chain transactions, and nonfungible tokens (NFTs).
Interlay says that interBTC is a stablecoin backed by BTC that is protected by a decentralized network of overcollateralized vaults. This is similar to MakerDAO’s DAI token, which is a stablecoin based on the Ethereum blockchain.
The iBTC vaults use mixed-asset collateral to guarantee BTC reserves. This means that iBTC can be exchanged on the Bitcoin network for BTC in a 1:1 ratio. As a safety measure in case the vault fails unexpectedly, BTC depositors will get their collateral back. Alexei Zamyatin, who helped start Interlay and is now its CEO, said more about why they were doing this.
“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.”
Gavin Wood, co-founder of Ethereum and creator of Polkadot, wanted to build a fully decentralized Bitcoin bridge on Polkadot. interBTC makes this possible. Acala and Moonbeam will be the first DeFi hubs to host the launch of iBTC, which will be supported by a $1 million liquidity program from the Interlay network treasury and partner initiatives.
It is planned that iBTC will be available on other big DeFi networks like Ethereum, Cosmos, Solana, and Avalanche.
The DeFi aggregator 1inch Network wants to expand into more countries in the region. This is similar to how Interlay wants to serve the DeFi and other crypto markets. Sergej Kunz, one of the co-founders of the DeFi aggregator 1inch Network, said that the company wants to do more business in Asia.
Kunz said that there isn’t much of a market for DeFi in Korea and Asia, but 1inch is working hard to form partnerships with Web3 companies there.
“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.”
As a decentralized exchange (DEX) aggregator, 1inch’s main purpose is to choose pools with the most liquidity, least slippage, and cheapest coin exchange rates.
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