Interlay, Polkadot’s network project, announced via a press release, the launch of a new decentralized Bitcoin stablecoin bridge on the Polkadot network with the functionality to use Bitcoin on other blockchains for Defi cross chain, NFT, and more.
Its name, InterBTC, will have the identification ticker: iBTC. Likewise, they have stated that the design of this new bridge is similar to MakerDAO’s DAI, having an advantage, as they call it, of its physical link to BTC, that is, iBTC can be exchanged 1: 1 for BTC directly in the Bitcoin block chain.
“Vaults protect BTC and use mixed collateral assets as insurance. In the event of a Vault failure, collateral is reduced and BTC depositors are reimbursed at a premium rate. Anyone can run a Vault.” they pointed out through the press release shared with Cointelegraph en Español.
In this sense, they also explained through a Twitter thread why IBTC intended to be “different” and differentiated itself from the other bridges. According to them, there are three elements that differentiate it, turning out to be these, the vaults, the collateral and the decentralization.
The big question: What Makes iBTC Different? 🤔
We know you’ve heard it before, but we’re not like other bridges. Let us provide it to you. 🧵⬇️ pic.twitter.com/gyBEPaLkBz
— Interlay #iBTC (@InterlayHQ) August 9, 2022
Vaults: iBTC is a stablecoin backed by Bitcoin, maintained by a decentralized network of collateralized vaults and redeemable 1:1 for #Bitcoin What that means: There is no single point of failure as assets are stored in a network of vaults.
Collateralized: All Interlay Vaults are overcollateralized. Vaults secure Bitcoin AND use mixed asset collateral as insurance. In the unlikely event of a Vault failure, collateral is clipped and BTC depositors are reimbursed at a higher rate.
Decentralization: Anyone who meets the criteria can run a Vault. There is no central force dictating how vaults or users use their liquidity.
For his part, the Dr. Alexei Zamyatin, Co-Founder & CEO of Interlayclarified that the fact of making this new bridge around Bitcoin was because it is this cryptocurrency, the driving force behind global crypto adoption, while Polkadot, Ethereum and the others was where the technological innovation was happening.
“With interBTC, we combine the best of both worlds, while preserving the trustworthy nature of Bitcoin”said.
Having said that, It is also worth noting that the launch of iBTC, as a decentralized Bitcoin bridge, was envisioned by Ethereum co-founder and Polkadot inventor Gavin Wood in the original white paper.
On the other hand, it is also worth noting that its launch will have the support of Acala and Moonbeam. Also , the Interlay network treasury, together with associated projects, reported that it launched a liquidity program of 1 million dollars with the aim of accelerating the growth of Polkadot with BTC liquidity.
“After Polkadot, iBTC will be available on other major DeFi networks, including Ethereum, Cosmos, Solana, and Avalanche – two of which are planned to go live later this year. Interlay continues to work on v2 of the Bitcoin bridge, with the goal of launching the first non-custodial Bitcoin DeFi solution in 2023.”they concluded.
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