BTC 🤝 ICP integration is ushering a new era of bridgeless DeFi projects... which are also 100% on-chain!
Many people were drawn into crypto because of Bitcoin. But after buying some BTC and getting to know more about blockchain technology, they discovered that Bitcoin is limited in use. Crypto users must use altcoins like ETH, ALGO, or SOL if they want to access DeFi projects or dApps, buy NFTs, join a DAO, or stake in a liquidity pool.
Now imagine that smart contracts could work efficiently on the Bitcoin blockchain and that you could make use of your BTC directly within DeFi projects. It would be possible to borrow, lend, or stake it in a liquidity pool. InfinitySwap, a new automated market-maker running on the Internet Computer blockchain, aims to implement this range of features so that users can use real BTC within DeFi.
This is made possible thanks to Chain Key cryptography on the Internet Computer (ICP), enabling a direct, bridgeless integration with the Bitcoin network. With this integration, developers can create special “canister” smart contracts that are capable of handling BTC. For example, bitcoin holders can swap their BTC with any other altcoin on Internet Computer through InfinitySwap.
The InfinitySwap team, fresh off a seed round led by Polychain Capital, aims to change the DeFi ecosystem while unlocking innovation in the Bitcoin and Ethereum ecosystems — and they are doing this by building an interoperable platform for swapping tokens from any blockchain network.Next-gen AMM
InfinitySwap wants to make it easier for founders, developers, and entrepreneurs to create and fund their projects. They can create their tokens and seek funds easily, doing both directly from the web app. Users will also be able to stake their tokens (ERC-20 and IS20) in liquidity pools.
Though popular decentralized exchanges like Uniswap and PancakeSwap already exist, their web interfaces are not decentralized or tamper-proof. They rely on centralized providers that are less resilient and censorship-resistant than their underlying DeFi protocols. InfinitySwap shows how the pace of innovation is changing DeFi, where the actual web interface runs securely on-chain, allowing for expanded interoperability and composability. Other features include:In addition to ERC tokens, users would be able to lend their BTC. Low transaction fees. Zero third-party intervention, since the whole process is run with smart contracts. Token staking is made simple. Any ERC20 or IS20 tokens can be staked directly in the app. Infinity Wallet: The wallet that supports every blockchain network
Many of the current cryptocurrency wallets and exchanges support tokens from a select number of blockchains — Ethereum, Bitcoin, and Binance Smart Chain being the dominant three. Every blockchain ecosystem needs its own specialized wallet to hold its coins. Why isn’t there one wallet to hold them all?
That’s one reason why InfinityWallet is special. It can support tokens from both Bitcoin and the Ethereum ecosystem. The idea is to make the InfinityWallet the most interoperable wallet on the market.
As InfinitySwap CEO Max Chamberlin puts it, “Ethereum coins, they’ll be on our platform. IC coins, they’ll be on our platform. Bitcoin, you guessed it, will be on our platform.”
As a user, you can buy, sell, and swap your favorite ERC-20 tokens with BTC, ETH, and ICP-native tokens.Social Finance
At InfinitySwap, your trading experience can be shared with others, bringing a social aspect to a previously singular activity. Developers have added social features that let users build a following and interact with other traders. Users can share their investment portfolios with friends, colleagues, or clients. InfinitySwap believes the next evolution of blockchain applications will be social in nature.
”The Internet Computer will be the next evolution of blockchain, blending the old Web2 and the new Web3 worlds while laying the foundations of a new blockchain-based economy, with applications that are far-reaching and revolutionary,” says Chamberlin. “We will see a new world of social media, running directly on the blockchain; the most interoperable blockchain platform, as the layer-0 for other blockchains, giving rise to some of the most powerful DeFi projects in crypto. At the center of this brave new world will be the InfinitySwap AMM, an exchange where tokens meet the community and vice versa.”Conclusion
InfinitySwap aims to make it easier and cheaper to create, swap, and stake Ethereum tokens, Internet Computer tokens, and BTC. If it succeeds at facilitating this quickly, cheaply, and securely, InfinitySwap stands a chance of being one of the most significant new DeFi projects in the coming years and a big contributor to the crypto ecosystem.