April 19, 2024
Sushi and ZetaChain Unleash Native Bitcoin Trading: A Paradigm Shift in DeFi
Latest Cryptocurrency News

Sushi and ZetaChain Unleash Native Bitcoin Trading: A Paradigm Shift in DeFi

Sushi, a prominent decentralized finance (DeFi) platform, has forged a strategic partnership with ZetaChain, an interoperability platform, intending to explore native Bitcoin swaps across 30 diverse blockchain networks. This collaboration intends to facilitate the trading of Bitcoin in a native, decentralized, and permissionless manner, without the need for wrapping the asset on multiple blockchains. As part of this initiative, Sushi will deploy its decentralized exchange (DEX) on ZetaChain, incorporating its v2 and v3 automated market makers, along with SushiXSwap.

The integration is poised to include various phases, with the initial step involving the introduction of a DEX on ZetaChain’s testnet. This phase will support basic asset swaps and liquidity provision, along with beta testing and incentives for application testing. Sushi is set to become one of ZetaChain’s launch partners when it deploys its mainnet, marking the second phase. This launch will be followed by the full functionality for Bitcoin interoperability, allowing users to seamlessly swap Bitcoin in a decentralized manner across different blockchain networks.

ZetaChain’s core contributor, Ankur Nandwani, highlighted the significance of this partnership, emphasizing that it could bring Bitcoin’s substantial user base into the realm of decentralized finance. He countered arguments suggesting that native Bitcoin swaps without wrapping assets on another chain are not feasible. Nandwani stated that ZetaChain’s approach enables the development of Bitcoin-interoperable decentralized applications (DApps) that can settle contracts and transactions natively.

The technical details behind the native BTC cross-chain swaps involve a cross-chain swap contract deployed on ZetaChain’s Ethereum Virtual Machine. Users can initiate the cross-chain swap process by sending regular native token transfer transactions on Bitcoin with a special memo to a TSS (Threshold Signature Scheme) address. This process triggers a series of events, including the creation of inbound and outbound cross-chain transactions (CCTX) on ZetaChain and the destination chain, respectively.

Jared Grey, Head Chef at Sushi, lauded the integration with ZetaChain as a significant advancement for DeFi, characterizing the capability to swap Bitcoin natively as a “game-changer” for the industry. The collaboration aims to enhance interoperability and connectivity within the DeFi space, introducing practical use cases for decentralized finance.

While the cryptocurrency and DeFi landscape continues to evolve, partnerships like the one between Sushi and ZetaChain underscore the industry’s commitment to advancing technologies that offer users seamless and secure solutions for decentralized trading and financial activities.

Image: Wallpapers.com

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