blockchain Adoption defi Decentralization Bitcoin

Worlds collide at Bitcoin-based DeFi project — Nothing is impossible

Reading now: 542

Bitcoin (BTC) has grown from a small project to a frontrunner for a possible global currency thanks to its unrivaled market capitalization, unmatched liquidity pool and reliable infrastructure.

The long-term benefits of Bitcoin have ensured its place in the balance sheets of industry giants like Tesla and MicroStrategy as well as some small nation-states, no matter the passing market conditions.It’s no wonder that all big players in the decentralized finance (DeFi) space are longing for a plunge in Bitcoin’s huge pool of liquidity.

However, since DeFi protocols were built on Ethereum or other blockchains, they lack native compatibility with the Bitcoin network, making it more difficult to tap into the BTC liquidity.Several projects have come up with workarounds to access Bitcoin liquidity over the years, with the most prominent ones being wrapped versions of BTC and token bridges.

Numerous reports highlighted that token bridges are too vulnerable to act as DeFi’s gateway to Bitcoin liquidity, with cross-chain bridges accounting for half of all DeFi exploits.As DeFi struggles to find an ideal way to access Bitcoin liquidity, BTC holders also want their long-term investment to reach its full potential without introducing added vulnerabilities or relying on a centralized third party.

The website is an aggregator of news from open sources. The source is indicated at the beginning and at the end of the announcement. You can send a complaint on the news if you find it unreliable.

Related News