BiFi launches Bitcoin lending on Ethereum

BiFi, the multichain decentralized financial lending protocol based on Bifrost’s Multichain technology, launched Bitcoin native (BTC) loans on the Ethereum network for the first time in DeFi history.

BiFi connects Bitcoin and Ethereum networks directly on its platform, so users don’t have to convert Bitcoin to Wrapped Bitcoin (wBTC) or other Bitcoin-linked assets to use on DeFi. A third party chain does not interfere with the use of Bitcoin. BiFi’s native bitcoin lending and lending services enable users to avoid additional transaction fees as they do not need to convert bitcoin to wrapped bitcoin and users can also avoid slippage issues during the conversion process.

BiFi users can borrow native bitcoin by depositing ERC-20 assets or borrow ERC-20 assets by depositing bitcoin on the Ethereum network. The procedures for depositing and borrowing are the same as for borrowing other assets on BiFi loans.

One difference in using Bitcoin loans, however, is that users need to register three addresses before they can start borrowing or borrowing Bitcoin on BiFi. Two addresses (Bitcoin deposit address and Bitcoin repayment address) are automatically assigned to the user when he clicks on “Deposit Bitcoin”. Users need to enter the third address (their own bitcoin address) in order to deposit bitcoin into the BiFi protocol.

safety

Data transfer is important for Bitcoin-Ethereum connectivity. Transactions must be transmitted from one chain to another precisely and without errors. This computational integrity of blockchain transactions ensures transparency and security.

BiFi uses this computational integrity of trustworthy blockchains instead of creating its own new chain. Bifrost uses cryptographic evidence to verify the accuracy of transactions on the Bitcoin network and the chain of Ethereum smart contracts. BiFi uses Bifrost to verify the correctness of transactions using the Fraud Proof method. This is a method used in optimistic rollups of Ethereum chains on layer two.

In addition, BiFi attaches great importance to the importance of protocol security. The BiFi team develops its own protocol codes and performs several smart contract audits when it introduces its new services and features.

About Bifrost

Bifrost is a multichain middleware platform that enables developers to build decentralized applications on multiple protocols. Bifrost is not limited to a single blockchain, but creates a new environment where developers can combine the best protocols to create much more scalable and flexible DApps.

About BiFi

BiFi opens a new era of DeFi, offering the first native BTC lending through the direct connection of the Bitcoin and Ethereum networks. Driven by Bifrost’s Multichain technology, BiFi will not only connect Bitcoin, Ethereum and the Binance Smart Chain, but also other blockchains such as Polkadot, Klaytn, Cardano and more. Through this multichain connectivity, BiFi will lower gas tariffs, increase accessibility and expand the ecosystem to enable the development of more innovative financial products for more people.

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