A decentralized blockchain network known as Interlay launched a brand-new platform on Wednesday that it refers to as a “one-stop shop” for Bitcoin decentralized finance (DeFi). The platform has a decentralized exchange (DEX) and a lending protocol, both of which are connected with Interlay’s current DeFi bridge, a method for connecting various blockchains, which was introduced last year and is powered by the wrapped token InterBTC (iBTC). Wrapped tokens are artificial (or tokenized) representations of cryptocurrency assets that are not created by the blockchains on which they are present.
According to Interlay, its new bitcoin DeFi hub aims to fill the void left by the year’s earlier closure of peer-to-peer bitcoin exchanges like LocalBitcoins and Paxful as well as the multi-billion dollar exodus from two of the biggest cryptocurrency exchanges in the world, Binance and Coinbase, sparked by the ongoing SEC lawsuits against the two centralized platforms.
In an interview, Interlay CEO and Co-Founder Alexei Zamyatin stated that “LocalBitcoins closed, Paxful had issues.” “We concentrate on trying to unlock more functionality for bitcoin and we try to be a substitute for centralized exchanges,” the company claims. The 30-year-old PhD in computer science alumnus characterizes the new platform as combining the well-known DEX Uniswap with the open-source liquidity and lending protocols Aave and Compound.
In addition to bitcoin (BTC), the hub apparently includes tether (USDT), polkadot (DOT), and Interlay’s governance token INTR. The project claims that liquid staking tokens, or portable tokens that represent staked cryptocurrencies, “are expected in Q3” and that assets from Ethereum and Cosmos may be made available by the end of the year.
This cornucopia of tokens may irk some Bitcoin purists, but Zamyatin says it’s a necessary step in bringing “Bitcoin to one billion people.”
“Financial freedom means different things to different people,” Zamyatin explained. “For some, it means that they can hedge against fiat by buying bitcoin and just holding it, but not everybody earns and has enough capital to be able to just put something aside and use it as an investment. There’s a lot of people globally who see bitcoin as access to a financial system,” he added.