First Trustless Bitcoin, iBTC, Launches on Polkadot & Moonbeam
Exactly a week after announcing a strategic partnership with Interlay, we’re excited to launch the first trustless wrapped-Bitcoin that is native to Polkadot, right here on StellaSwap! This is a huge milestone in fostering adoption for Polkadot-native assets, especially one that is a strategic staple across the broader DeFi.
The recent exploit on Nomad bridge underlined the importance of utilizing Polkadot-native assets via cross-chain messaging (XCM). XCM represents a secure way of transporting assets from one parachain to another without utilizing centralized bridges which possess a high-degree of risk. As we move towards a Polkadot-native future, StellaSwap is dedicated to fostering adoption for these assets in-line with the growth of Polkadot’s ecosystem.
What is iBTC?
In 2021, Interlay introduced Polkadot’s first trustless wrapped Bitcoin — PolkaBTC — marking a critical step towards a truly interoperable ecosystem.
Interlay has previously released a detailed technical specification and a working PoC implementation of wrapped Bitcoin, and after the successful pilot project, they received a Web3 Foundation grant. Interlay’s success led them towards being a fully-fledged parachain on March 2022.
Users are now able to mint 1:1 Bitcoin-backed assets onto Polkadot, as iBTC, and use these across a wide range of applications, including decentralized exchanges, stablecoins, and lending protocols. Under the hood, the BTC-Parachain implements XCLAIM, the only cross-chain framework that is financially trustless, permissionless, and censorship-resistant — and is backed by top-tier research.
What Makes Polkadot’s iBTC Unique & Secure?
The core design principles of iBTC is predicated on two central elements: trustless and open.
- Trustless: Unlike other forms of wBTC, iBTC has no central authority. From its inception, iBTC will be run by a decentralized network of individuals, community members, and entities.
- Open: In the spirit of permissionless systems like Bitcoin, anyone can participate in the iBTC minting process. Compared to other wBTC’s centralized infrastructure, you do not need permission or any additional token to become a maintainer and start earning fees.
It is important to understand that iBTC holders can always redeem iBTC for actual BTC, or be reimbursed in the collateral currency at a beneficial rate. In the case that a vault misbehaves, you will be reimbursed from the Vault’s collateral and you can then profit off the premium between the BTC & DOT rates. At the start, the accepted collateral for minting iBTC would be DOT. In the long-run, accepted collaterals may include stablecoins or other bluechip token-sets to improve stability.
StellaSwap would be the first DEX on Moonbeam to launch iBTC. The details of the launch is as follows;
⭐️ Launch: iBTC on Moonbeam
⭐️ Bridge: Native XCM Transfer (Moonbeam’s XCM Portal)
⭐️ Launch Date: 11 August| 14:00 UTC
StellaSwap is the first and leading Moonbeam DEX that offers an integrated gateway to the DeFi world. Users can swap, earn, yield farm, bridge assets, explore new projects and engage in NFT trading all from a single unified platform. StellaSwap’s products are structured in such a way that facilitates decentralized governance of STELLA holders, while continuing to innovate on the collective foundations by design.