BiFi Announces World’s First Bitcoin Lending Across Native Chains, Ushering In A New Era Of DeFi

Announcements, Blockchain, Innovation, News | October 1, 2021 By:

BIFROST, a blockchain middleware that enables true multichain connectivity, has launched the world’s first native Bitcoin (BTC) Lending on Decentralized Finance (DeFi), connecting both Bitcoin and Ethereum networks natively for the first time.

Called BiFi, the new Bitcoin lending platform reportedly works across native chains, enabling users globally to lend and borrow digital assets directly from one native chain to another, without the need for a third-party chain intervening.

According to the copmpany, BiFi enables multichain capability in DeFi, connecting different capital markets siloed on different blockchains to create a more connected and inclusive DeFi ecosystem. BiFi uses BIFROST’s multichain technology to collect and exchange data among different blockchains, enabling an interoperable multichain DeFi ecosystem with collateralized loans from different chains. With BiFi now connecting the BTC and Ethereum networks directly, BTC holders can now borrow other assets on the Ethereum network once native BTC has been deposited. BiFi supports lending native BTC and borrowing ERC20 assets on the Ethereum network, and vice versa, by borrowing native BTC with ERC20 assets as collateral, native BTC will be deposited in a users’ wallet.

“The launch of the world’s first BTC lending on BiFi is an important milestone for DeFi, giving BTC holders direct access to the full range of DeFi services on the Ethereum network, enabling them to realize the true potential of their digital assets,” said Dohyun Pak, CEO & Co-Founder of BIFROST. “This is an important first step as we continue working towards connecting the diverse capital markets that exist across different blockchains, reducing the fragmentation and complexity of the current DeFi ecosystem, ultimately accelerating the dawn of a new era in DeFi, one that has greater flexibility and scale to accommodate the growing demands of a global market that is hungry for DeFi.”

While most existing solutions create a proof within Layer 2 and verify transactions on-chain, BIFROST uses fraud proofs to verify that the actions of the Relayer are correct, a method that is also used in the Optimistic Rollup of Ethereum chains on Layer 2. By creating cryptographic proofs and verifying them on-chain, BIFROST ensures the security of its protocol with stringent computational integrity requirements that provides unmatched security.

BiFi is set to reveal a multichain wallet to support native-chain features, delivering on its vision to bring to market BIFROST’s multichain technology that is able to work across cross Ethereum Virtual Machine (EVM) and non-EVM networks through BIFROST Multichain Dev Suite.

“BIFROST firmly believes in a future that is not One Chain Wins All, and to that end, we are committed to using our cutting edge technologies to connect the different blockchain mainnets, combining the different strengths of these blockchains to enable true scalability and interoperability. The connectivity between BTC and Ethereum networks is just the tip of the iceberg for us, and we will continue to build the decentralized infrastructure that will collect all capital markets and blockchains, facilitating the seamless flow of data and capital so users can truly take control of their financial future,” Pak added.