Expanding Bitcoin’s DeFi: RSK & RIF integrate DAI 🚨 This article is 4 years old...
Expanding Bitcoin’s DeFi: RSK & RIF integrate DAI
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The RSK Infrastructure Framework (RIF) development team has now successfully used the RSK-Ethereum token interoperability bridge to expand DeFi capability on the RSK network. The bridge was launched early this year.
The TOB-audited interoperability bridge works by locking DAI in Ethereum and simultaneously minting an interoperable ERC-777 token that can “move freely” in the RSK network. In this arrangement, there is token interoperability. At the same time, the supply of DAI remains unaffected in the base layer.
Through the link—reviewed by the Maker Foundation integrations team, financial applications can be launched on RSK but deployed on Ethereum. Therefore, creators can concurrently access deep liquidity in the pioneer smart contracting network while enjoying low transaction fees and high scalability on the RSK side chain.
Per the release, the two projects expect to increase decentralized finance services based on Bitcoin’s network.
DApp developers will be capable of creating applications on RSK that connect to the Ethereum ecosystem while tapping into its network liquidity and effect.
RSK and MakerDAO, together with the RIF token community, work closer to bring tools and assets that power DeFi to a Bitcoin environment. This would help fuel the growing demand for DeFi-based assets and apps without them being hampered by the high fees on Ethereum’s network.
As DAI is now available on RSK, this will bring the crypto-collateralized stablecoin to a scalable smart contract network while also maintaining a connection with Ethereum and its valuable users and developers. As a result of the work, DAI is now accessible to BTC-backed DeFi products that include the RIF token and its many protocols.
Speaking on the matter was Diego Gutierrez Zaldivar, CEO, and co-founder at IOVlabs, who said:
“The DAI integration is another key step towards Bitcoin DeFi’s adoption. We are confident the growth of the Bitcoin ecosystem and its DeFi opportunities has only just begun, with much more to come.”
Disclaimer: This is a sponsored post brought to you by IOV Labs. For more information about sponsored posts, see here.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
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Dai (DAI) is a cryptocurrency token and operates on the Ethereum platform.