Interlay’s interoperable network today announced the launch the first trustless Bitcoin bridge on the Kusama network called Kintsugi Bitcoin (KBTC), a 1:1 Bitcoin-backed asset on Kusamaand which also operates as a Bitcoin wrapper equivalent in BTC to Maker’s DAI expanded with physical settlement.
The new protocol of what would be a Bitcoin algorithmic stable currency, secured by a decentralized network of vaults, would have already passed academic review and scrutiny by the Bitcoin and Ethereum community at various conferences, even being audited by NCC, Informal Systems. , Quarkslab and reviewed by SRLabs.
Likewise, KBTC that operates in Kintsugi, Interlay’s Canarian or test network in Kusama, can already be used in the Karura (from Acala) and Moonriver (from Mooonbeam) parachains. This interoperability breakthrough would allow DeFi applications like Solarbeam, Zenlink, and Moonwell to access BTC liquidity without centralization risk.
Alexei Zamyatin, co-founder and CEO of Interlay, claimed that there is currently $14 billion worth of Bitcoin “DeFi” on Ethereum.controlled by a handful of centralized custodians, behind KYC, with no recourse for users or Dapps if anything goes wrong.
“Even the big players like Maker, Compound and Aave implicitly trust a few traditional institutions. Interlay decentralizes BTC custody, protecting Dapps and users, while incentivizing institutional custodians to join and de-risk.”Zamyatin said through a press release announcing that the Interlay network treasury itself, along with other parachain treasuries, is preparing to introduce incentives for the liquidity and utilization of kBTC in the Polkadot and Kusama ecosystems. .
Lastly, it should be noted that The launch of kBTC comes after Interlay secured a parachain slot by raising 2.5 million DOT from over 10,000 community members during the auction round, and also comes shortly before the launch of Interlay’s flagship product, interBTC. (iBTC) on Polkadot.
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