Interlay aims to advance Bitcoin’s DeFi potential with new interoperable bridge

Interlay, a newly appointed Polkadot (DOT) parachain community, is nearing the completion of a two-year Bitcoin (BTC) bridge growth challenge on Polkadot, with the launch announcement on its sandbox platform Kusama.

Moreover, Interlay has built-in a Wrapped Bitcoin (wBTC) digital asset, referred to as kBTC, on their Canary parachain Kintsugi. The asset is already accessible for buying and selling on two different Polkadot parachains — Karura, ruled by Acala, and Moonriver, ruled by Moonbeam.

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It’s anticipated that Interlay will search to deploy its know-how throughout each Cosmos and Ethereum throughout the coming yr to boost interoperability between chains.

As a lot of you already know, kBTC is our flagship product on @kusamanetwork. kBTC is a 1:1 BTC-backed asset on Kusama, maintained by a decentralized community of collateralized vaults. KSM would be the first of many collateral to safe kBTC❗️

Detailed evaluation https://t.co/AT8yC4iQqC

— Interlay #interBTC (@InterlayHQ) March 24, 2022

Alexei Zamyatin, the co-founder and CEO of Interlay, acknowledged:

“There may be 14 billion USD price of Bitcoin ‘DeFi’ on Ethereum, managed by a handful of centralized custodians, behind KYC, with no treatment for customers or DApps if one thing goes mistaken. Even huge gamers like Maker, Compound and Aave implicitly belief just a few tradiFi establishments.”

The preliminary growth of this challenge was financially supported by an undisclosed-sum Web3 Basis grant issued in March 2020.

Associated: How Polkadot’s parachain auctions make a decentralized Web3 doable

Following this, the interoperability challenge was the topic of two capital raises, each a $3 million seed spherical in July 2021 and a pre-Collection A $6.5 million spherical in December 2021. On the time of the latter, the founding father of CEO of lead contributor DFG Capital, James Wo, acknowledged that Interlay’s answer will “broaden the cross-chain potentialities for Bitcoin.”

In February, Interlay was announced as one of many winners of Polkadot’s tenth parachain public sale slot, securing in extra of two.7 million DOT tokens from almost 20,000 contributors.