Interlay has launched a Bitcoin-based stable coin cross-chain bridge on Polkadot, named interBTC (IBTC). This bridge will allow the use of Bitcoin on other blockchains not native to Bitcoin, for Defi transactions, cross-chain transfers, NFTs, and a lot more.
iBTC will operate as a stable coin that is backed by BTC and secured by a decentralized network of collateralized vaults in a model that is similar to DAI token which is a markerDAO stable coin on the Ethereum blockchain.
The iBTC vault uses multiple number of assets as collateral in ensuring its BTC reserves ,this makes one BTC to be redeemable 1:1 with BTC over the Bitcoin blockchain. In any event of the vault failing, the collaterals are automatically taken out of the Vault and used to pay debt owed to depositors of BTC .
The iBTC driven DeFi programs will be first launched on Acala and Moonbeam, and these programs will be supported with a liquidity of up to one million Dollars ($1 mill.) from the interlay network treasury and partner projects.
About interlay
Interlay is a research and development blockchain firm that is focused on blockchain interoperability. It envisions a future where blockchain seamlessly connects and interacts with all sectors.
Interlay facilitates investing, earning and paying for goods and services with BTC on any blockchain.
The platform is open and secured by insurance.