June 23, 2021 — DefiDollar & BadgerDAO proudly announce the launch of interest-bearing Bitcoin DeFi solutions to the Polygon network. This marks another impressive milestone for decentralized finance solutions involving Bitcoin.
BadgerDAO has focused a lot of its attention on enabling native Bitcoin support for decentralized finance. The world’s leading cryptocurrency is incompatible with this concept at its core due to its minor appeal involving smart contracts. Thanks to these efforts by BadgerDAO, the team has achieved over $500 million in Total Value Locked. Moreover, the team has created vaults, SETTs, and bridges to bring Bitcoin to Ethereum DeFi, allowing the industry to acquire broader liquidity.
“DeFiDollar and BadgerDAO are pioneers in DeFi and we’re thrilled to see the possibilities unlocked by the interest-bearing Bitcoin in Polygon’s DeFi ecosystem.” Sandeep Nailwal, Co-Founder — Polygon
Accelerating the adoption of Bitcoin in DeFi requires branching out to more networks. As Polygon has experienced explosive growth over the past few months, it makes for a perfect fit. DefiDollar and BadgerDAO recently launched ibBTC — Interest Bearing Bitcoin as a joint venture. That product is accessible on the Polygon network, as the ecosystem has successfully seen a strong use of BTC in Aave and SushiSwap, among other protocols. A total of $1.3 billion in BTC is being utilized on this network today, a number that will likely increase in the coming months.
To roll out the interest-bearing Bitcoin solution on Polygon, there will be three stages to complete:
Introducing the interest-bearing Bitcoin solution on Polygon with an incentive to leverage the BTC bridge
Build deep liquidity pools on SushiSwap for ibBTC/WBTC, creating cost-efficient swaps with Wrapped Bitcoin. This approach also gives way to optimal yield farming strategies involving BTC on Polygon.
Future deployment of ibBTC after the Badger Bridge and Sett launches have been completed.
Considering how there are other versions of Bitcoin, such as BTCB on Binance Smart Chain and Wrapped Bitcoin [WBTC] on Ethereum, there is a certain degree of fragmentation to address.
Creating a more liquid and composable iteration of Bitcoin across multiple chains will occur through the ibBTC effort. Users will be able to transfer value between the different chains from within the same ecosystem. Those who hold their Bitcoin will continually earn interest. Opting for Polygon as one of the first chains to be supported highlights the potential of this ecosystem and the role it can play in Bitcoin-related DeFi products and services.
Source : blog.polygon