Interlay, a decentralized blockchain network, has unveiled a new platform that it calls a one-stop-shop for Bitcoin decentralized finance (DeFi). The platform includes a decentralized exchange (DEX) and a lending protocol, both integrated with Interlay’s existing DeFi bridge. This bridge, launched last year, is powered by the wrapped token InterBTC (iBTC).
The new platform is intended to fill the void left by the closure of peer-to-peer bitcoin exchanges like LocalBitcoins and Paxful earlier in the year, as well as the multi-billion dollar flight from two of the world’s largest crypto exchanges – Binance and Coinbase – due to the current U.S. Securities and Exchange Commission (SEC) lawsuits.
LocalBitcoins closed, Paxful had issues, said Interlay CEO and Co-founder Alexei Zamyatin. We focus on trying to unlock additional functionality for bitcoin and we try to be an alternative to centralized exchanges.
The platform is a combination of Uniswap, a popular DEX, and Aave and Compound, open-source protocols for liquidity and lending, respectively. It features not only bitcoin (BTC), but also tether (USDT), polkadot (DOT), and Interlay’s governance token INTR. Liquid staking tokens, or portable tokens that represent staked cryptocurrencies, are expected to be available in Q3, while assets from Ethereum and Cosmos may become available by year’s end.
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.