Bid farewell to centralized middlemen and embrace an era of scalable, decentralized ‘Bitcoin, everywhere’ as tBTC expands to Polygon, ushering in new avenues to earn with your BTC on QuickSwap and KyberSwap.
What is tBTC?
In the realm of bridging solutions, traditional methods of transferring Bitcoin to Ethereum rely on trust in a third-party intermediary, such as BitGo with WBTC. Users have to relinquish control of their Bitcoin to a central entity in exchange for an Ethereum token representing the original asset. However, this approach introduces the risk of censorship and compromises the very essence of decentralization.
In January, Threshold Network re-introduced tBTC - the industry’s only decentralized, permissionless, and scalable Bitcoin-to-Ethereum bridge. This groundbreaking solution offers an unprecedented opportunity to harness the power of your Bitcoin within the decentralized finance (DeFi) ecosystem, all while preserving the core principles of Bitcoin.
Unlike its centralized counterparts, with their permissioned access and risk of censorship - tBTC doesn't need middlemen or intermediaries. Instead, it leverages a randomly selected group of node operators on the Threshold Network. These independent operators collaboratively secure your deposited Bitcoin through cutting-edge threshold cryptography. Best of all, it remains open-source and accessible to all. tBTC offers Bitcoin holders unfettered access to the expanding decentralized finance and Web3 universe, eliminating middlemen and intermediaries entirely.
Wormhole brings tBTC to Polygon
tBTC's expansion to Polygon introduces an exciting new chapter for tBTC. Polygon (previously known as Matic Network) is a multi-chain scaling solution for the Ethereum blockchain. It's designed to provide faster and cheaper transactions using Layer 2 sidechains, which are blockchains that run alongside the Ethereum main chain. Polygon is committed to creating a more accessible world of DeFi by solving some of the inherent limitations of blockchain technology, such as slow block confirmations and high gas fees. By developing a robust platform for scaling and interoperability, Polygon opens up a world of possibilities for developers to create secure, scalable, and user-friendly dApps (decentralized applications). The tBTC Polygon integration unlocks interoperability between Bitcoin, Ethereum, and now Polygon while ensuring users have complete control over their Bitcoin within the DeFi ecosystem.
The key advantage of tBTC on Polygon over native Bitcoin is its integration within the Ethereum and Polygon-based DeFi ecosystems. Native Bitcoin doesn't have the necessary infrastructure to directly interact with these platforms. By tokenizing Bitcoin into tBTC on Polygon, users can use their Bitcoin in various DeFi activities, like yield farming, lending and borrowing, and liquidity provision, all with the lower transaction costs and fast transaction speeds that Polygon offers.
Comparing tBTC on Polygon with tBTC on Ethereum, the benefits are primarily around scalability and transaction costs. Ethereum, despite its remarkable capabilities, suffers from high gas fees and slower transaction speeds, especially during periods of peak network congestion. On the other hand, Polygon, being a Layer 2 scaling solution, provides users with a platform that offers faster transaction confirmations and significantly lower transaction costs, thereby improving the overall user experience.
Making this expansion possible is the seamless integration of tBTC with Wormhole. Wormhole acts as the bridge connecting the Ethereum ecosystem with Polygon, enabling seamless movement of assets like tBTC between the networks. The utilization of Wormhole is paving the way for tBTC's expansion to over 20 blockchains.
Put your Bitcoin to work with QuickSwap and KyberSwap
The introduction of new tBTC pools on two innovative decentralized platforms – QuickSwap and KyberSwap – exponentially multiplies the opportunities for users to generate returns on their Bitcoin holdings.
QuickSwap, built on Polygon, is a futuristic Layer-2 decentralized exchange (DEX) and an automated market maker (AMM). It has positioned itself as an indispensable player in the DeFi ecosystem by allowing users to seamlessly trade any ERC-20 tokens without permission and at virtually no gas fees. The ability to execute transactions rapidly and inexpensively on QuickSwap facilitates frictionless trading experiences and promotes liquidity in the market.
On the other hand, KyberSwap functions as a decentralized exchange aggregator, ensuring traders receive the most competitive token prices by scouring rates across exchanges in real-time. Besides its aggregator role, KyberSwap also operates as a tick-based AMM with concentrated liquidity, customizable fee tiers, reinvestment curve, and other advanced features specially designed to give LPs the flexibility and tools to optimize earnings without compromising on security. By adding liquidity to KyberSwap's new tBTC pools, users can not only contribute to the overall liquidity of the platform but also earn from the trading fees generated in the process.
The integration of tBTC on QuickSwap and KyberSwap, combined with the advantages of Polygon's Layer-2 scalability, substantially expands the doorway to DeFi and the broader Web3 ecosystem. This integration enables users to leverage their Bitcoin to its fullest potential without the need for third-party intermediaries. More than ever, individuals now have the power to delve deeper into the rapidly expanding world of DeFi on Polygon, experiencing firsthand the transformative potential of decentralized finance.
Become a LP in one of the new tBTC pools to start earning with your tBTC today!
Join us in celebrating this groundbreaking advancement as tBTC unlocks the true potential of Bitcoin in the Polygon ecosystem. Set your reminder for a Twitter Space on Friday, June 30th at 1 p.m. ET with the Threshold DAO, Polygon, Wormhole, and KyberSwap to discuss the new opportunities to earn with your tBTC on Polygon.