Until recently, most Bitcoin (BTC) lending was done on centralized platforms. This was due to the cumbersome process of converting bitcoin into a packaged version of ERC-20 before it was deposited on the Ethereum (ETH) network.
This shortcoming not only led to additional transaction fees and price slippage, but also to a decentralized, fragmented economic system (DeFi). Currently, only 1% of bitcoins are traded in Ethereum.
BiFi is a platform that enables real Bitcoin lending on DeFi by directly connecting the Bitcoin and Ethereum networks. The platform describes itself as “like Compound or Aave, but with real, authentic Bitcoin.” Instead of going through a bitcoin top-up process, users can use their original bitcoins from a bitcoin wallet to borrow and borrow ERC-20 assets.
Thanks to BiFi’s native bitcoin lending service, bitcoin customers can use DeFi protocols without the need for third-party managers and merchants. Eliminating the need for mobilized BTC, BiFi anticipates a “massive influx of DeFi BTC holders” that will shape the future of the industry.
Multi-chain lending with maximum security
BiFi claims that it was designed with safety first. Using multi-chain BIFROST technology and a set of encryption guides, BiFi ensures the security of the protocol.
The most important aspect here is the fact that the Bitcoin and Ethereum networks are directly connected. Both of these blockchains already contain a large number of nodes to ensure their computational integrity.
More information about BIFI here
“We are creating cryptographic evidence to verify and validate the accuracy of transactions made on the Bitcoin network in the Ethereum smart contract chain. Chained verifications can be more expensive, but this algorithmic integration method is still the most secure method.” – He said in a blog post BiFi.
The platform also uses fraudulent evidence to verify deportation proceedings. It does this by creating and verifying an encrypted directory on the string.
DeFi future without fragmented liquidity
Since its launch in January 2021, the total value withheld for BiFi’s deposit, lending, and pooling services has exceeded $219 million. The platform also offers a commercial and profitable service based on short-term loans – BiFi X.
“Connecting the Bitcoin and Ethereum networks is a huge step forward. However, BIFROST will connect more networks and BiFi will provide credit and financial services to expand the DeFi ecosystem to make DeFi finance into the future,” commented Dohyun Park, CEO of BiFi and BIFROST. …
The next launch of the project will be a multi-network wallet, which is expected to launch in the third quarter of 2021. Users will be able to store BTC, ETH, BNB, ERC-20 and BEP-20 tokens.
In 2022, BiFi aims to expand its multipurpose DeFi lending network from EVM beyond EVM. With Multichain Dev Suite, developers will be able to manage DApps across all EVM and non-electronic networks, extending the multi-chain DeFi ecosystem.
Ultimately, BIFROST sees a future without isolated capital markets across many chains. To achieve this goal, with the primary goal of solving one of DeFi’s biggest challenges – interoperability – the project allows it to move freely between blockchains without packets, bridges, or repository receivers. BiFi is built on a “global multi-chain middleware” which is a multi-chain DeFi platform that will not isolate the capital markets from many chains.