Interlay launches trustless BTC stablecoin bridge on Polkadot

Interlay, a London-based blockchain company, launched Bitcoin (BTC)-based cross-chain bridging in the polkadot (DOT) named InterBTC (iBTC), this bridge allows Bitcoin to be used on non-native blockchains. Decentralized Finance (DeFi)cross-chain exchanges and Non-Fungible Tokens (NFTs)among others.

interBTC operates as a BTC-backed stablecoin secured by a decentralized network of overcollateralized vaults, which, according to Interlay, is similar to MakerDAO. DAI Token is a stablecoin on the Ethereum blockchain.

iBTC Vaults use mixed-asset collateral to insure BTC reserves. As a preventative measure in the event of an unexpected vault failure, collateral is planned to be reduced and returned to BTC depositors. Sharing the thought process behind the initiative, Interlay Co-Founder and CEO Alexey Zamyatin said:

“Bitcoin is the driving force behind global crypto adoption, while tech innovation is happening there for Polkadot, Ethereum & Co. With InterBTC, we’re combining the best of both worlds while preserving Bitcoin’s trustlessness.

Interlay’s announcement honors Ethereum co-founder and Polkadot inventor Gavin Wood’s vision to build a fully decentralized Bitcoin bridge on Polkadot, made possible by interBTC. Agala and Moonbeam will be the first DeFi hubs to offer the introduction of iBTC, which will be supported by a $1 million liquidity program provided by the Interlay Network Treasury and partner programs.

The roadmap for iBTC includes availability on other major DeFi networks including Ethereum, Cosmos, Solana and Avalanche.

Related: DeFi market has room for growth in Korea: 1inch co-founder — KBW 2022

Echoing Interlay’s interest in serving DeFi and other crypto markets, DeFi aggregator 1inch Network is eyeing geographic expansion into new jurisdictions. Speaking to Cointelegraph, DeFi aggregator 1inch Network co-founder Sergej Kunz revealed plans to expand its reach in Asia.

Despite the small DeFi market in Korea and Asia, Kunz revealed that 1inch is partnering with Asia-based Web3 companies.

“Here, there are a lot of people who like gaming and a lot of things like that, so I think the DeFi market in South Korea can grow a lot.”

1inch’s primary use as a decentralized exchange (DEX) aggregator involves identifying pools with the largest liquidity, lowest drift, and cheapest cryptocurrency exchange rates.