Interlay publishes a new protocol with which it intends to develop the DeFi self-custody of BTC

Interlay publishes a new protocol with which it intends to develop the DeFi self-custody of BTC

The decentralized network Interlay published a whitepaper of a new protocol called XCLAIM Commit (XCC), which is intended to increase the security of user funds and improve the capital efficiency of vaults through self-custody of BTC DeFi across chains.

After launching the Kintsugi Bitcoin Bridge, the first trustless Bitcoin bridge in Kusama, Interlay now publishes XCLAIM Commit (XCC) and extends XCLAIM, another whitepaper published in 2018, which builds on the technology behind the network’s core products. interBTC and kBTC from Interlay.

However, it is necessary to comment according to what Interlay explained in its press release that XCC vaults will now need less collateral than XCLAIM to achieve the same economic security guarantees.

Alexei Zamyatin, Co-Founder and CEO of Interlay, described the publication as a great milestone and expressed the following: “interBTC, aiming to become the equivalent of DAI for BTC, has already decentralized Bitcoin custody. However, the goal was always to achieve non-custodial BTC DeFi, a very difficult problem to solve. Now with XCC, a milestone in this regard, finally enabling easy-to-use and theft-resistant Bitcoin DeFi.”

Having said this and the rest of the benefits that arise from this new protocol, the Interlay team explained that from now on, the “collateralization on demand”a concept qualified as innovative in inter-chain communication, which also has the potential – they said – to change the rules of the game in the construction of truly decentralized bridges. “It allows greater flexibility of the networks and that the bridge operators can adapt their security deposits to the patterns of use of BTC and the investment styles of their users”they explained.

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In this sense, once activated, according to Interlay, XCC will allow users to stake their bitcoins in some selected DeFi applications, mainly benefiting from high security and capital efficiency, combining Bitcoin multisigs with concepts seen in Ethereum L2.

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