Sushi Partners with ZetaChain for Native Bitcoin Swaps
SushiSwap, a decentralized finance (DeFi) platform, has teamed up with ZetaChain, an interoperability platform, to explore the possibility of enabling native Bitcoin swaps for users across 30 different blockchain networks. This partnership aims to allow for trading of BTC without wrapping across multiple blockchains in a native, decentralized, and permissionless manner.
The integration will include Sushi’s v2 and v3 automated market makers as well as Sushi’s cross-chain swap SushiXSwap. The goal is to enable the building of Bitcoin-interoperable decentralized applications (DApps) that can settle contracts and transactions natively.
ZetaChain has proven the technology at a testnet level and plans to demonstrate its utility through partnerships with SushiSwap and other DeFi protocols when it launches its mainnet. Sushi head chef Jared Grey believes that this integration is a significant advancement for DeFi, describing the capability to swap Bitcoin natively as a game-changer for the industry.
Phased Integration with ZetaChain
The integration will take place in two phases. In the first phase, Sushi will introduce a DEX on ZetaChain’s testnet to support basic asset swaps and liquidity provision. This phase will also include beta testing and incentives for application testing. In the second phase, Sushi will become one of ZetaChain’s launch partners when it deploys its mainnet. The launch is expected to be followed by full functionality for Bitcoin interoperability.
Technical Details of Native BTC Cross-Chain Swaps
ZetaChain’s EVM (Ethereum Virtual Machine) will deploy a cross-chain swap contract. This omnichain contract can be called from any connected chain, including Bitcoin. To perform a cross-chain swap, a user sends a regular native token transfer transaction on Bitcoin with a special memo to a TSS address containing the omnichain contract address on ZetaChain and the value passed to the contract (the destination token and recipient address on the destination chain).
Hot Take: A New Era for DeFi with Native Bitcoin Swaps
The collaboration between SushiSwap and ZetaChain marks an important milestone in DeFi by enabling native Bitcoin swaps across multiple blockchain networks. With this partnership, the potential for building Bitcoin-interoperable DApps is within reach, promising increased liquidity and practical use cases of interoperability and enhanced connectivity in DeFi. As these technologies continue to evolve, they have the potential to transform how assets are exchanged and settled in decentralized finance ecosystems.
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