Avalanche launched a bitcoin bridge via a Web3 wallet Core and the new bridge aims to connect BTC users to the DeFi protocols like TraderJoe and Platypus so let’s read more today In our cryptocurrency news.
Ethereum competitor Avalanche launched a Bitcoin bridge solution built on the crypto wallet Core. After the news, the native token AVX surged higher and outperformed most other assets such as Ethereum and Bitcoin in the past day. Ava Lab is the foundation behind Avalanche and launched a new bridge solution that will allow users to tokenize their BTC and the newly introduced wBTC will make the entire DEFI ecosystem available to BTC network users:
“This enables Bitcoin holders to directly access extensive earning and yield opportunities on top DeFi protocols, while still maintaining BTC on their portfolio.”
The current BTC bridge is available on Avalanche Web3 wallet core only and the post noted that Core Chrome Extension is a customized product that supports a cross-chain bridge and can enable other blockchains based assets to be accessed via the network:
“The Core Wallet Extension was custom built to support Bitcoin and the Avalanche Bridge and to handle the technical problems of linking Bitcoin and EVM chains within a wallet.”
Similar to how wrapped BTC is living on the Ethereum blockchain and was introduced to eTH via smart contracts, Avalanche will lock up each received BTC as a deposit and mint the equivalent amount of BTC.b which is tailored to the network. The Labs stated that the bridge will not expose the users to counter-party risks and trust issues as the ETH-based wrapped BTC has. To bridge BTC to the layer one blockchain, the users will have to process two types of fees such as BTC network fees and bridge fees charged to the user. According to the post, the bridge will enable BTC holders to access Avalanche subnets and other networks like Ethereum as well.
The Avalanche bridge was launched in 2021 to connect assets between the Ethereum and Avalanche networks. Compatible with the EVM applications and dapps on eTH could be easily transferred to Avalanche while users can stake ETH-based assets on the DEFI protocols for earning yields.
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