Sushi Teams Up with ZetaChain to Pioneer Native Bitcoin Swaps across Blockchains
Summary:
Sushi, a decentralized finance (DeFi) platform, has partnered with interoperability platform ZetaChain to explore the possibility of native Bitcoin swaps across multiple blockchains. The integration will include Sushi's automated market makers and its cross-chain swap, SushiXSwap. The partnership aims to attract Bitcoin's large user base to the DeFi sector in a new way. Upon successful beta testing and incentive programs, Sushi plans to become one of ZetaChain's launch partners, providing full functionality for Bitcoin interoperability.
The decentralized finance (DeFi) platform Sushi has started a collaboration with the interoperability platform ZetaChain to investigate the potential of native Bitcoin swaps across 30 different blockchain networks for its users. This partnership will allow Sushi to deploy its decentralized exchange (DEX) on ZetaChain, which is anticipated to facilitate the trading of BTC without any need for wrapping across several chains, as characterized by the team. They regard this as a “native, decentralized and permissionless manner".
Sushi’s v2 and v3 automated market makers and its cross-chain swap SushiXSwap will be part of the integration. Ankur Nandwani, a core contributor to ZetaChain, spoke to Cointelegraph about how the partnership can attract Bitcoin's enormous user base to the DeFi sector in a native way. He disputed claims that it is impossible to bridge BTC without wrapping the assets on another chain.
Nandwani referred to early instances such as THORChain which have traded Bitcoin natively with other chain assets. He also mentioned Bitcoin side chains as another alternative. He pointed out that ZetaChain's approach provides anyone the opportunity to create Bitcoin-interoperable decentralized applications (DApps) which can settle contracts and transactions natively. Still, trust in the decentralization of the network executing the cross-chain transaction is required.
ZetaChain has allegedly demonstrated its technology at the testnet level and will validate the utility by launching its mainnet, partnered with SushiSwap and other DeFi protocols. Jared Grey, Sushi's head chef, praised the integration, referring to it as a significant progression for DeFi and calling the ability to swap Bitcoin natively a “game-changer” for the industry. He emphasized the importance of interoperability and increased connectivity, aside from the expanded liquidity provided by Bitcoin.
Sushi's integration with ZetaChain will occur in two stages. The first phase will involve Sushi launching a DEX on ZetaChain’s testnet to facilitate basic asset swaps and liquidity provision. This stage will also comprise beta testing and application testing incentives. Sushi will be one of ZetaChain's launch partners upon deployment of its mainnet, which is expected to offer full functionality for Bitcoin interoperability subsequently.
Nandwani explained the technicalities involved in enabling native BTC cross-chain swaps. An omnichain cross-chain swap contract is deployed on ZetaChain’s Ethereum Virtual Machine (EVM). A user can initiate a call to a cross-chain swap contract by sending a standard native token transfer transaction on Bitcoin with a specific memo to a Threshold Signature Scheme (TSS) address. The TSS address is controlled by ZetaChain's signer validators. The memo includes the omnichain contract address on ZetaChain and a value to pass to the contract. This process is repeated in inverse for the outbound cross-chain transaction (CCTX, from ZetaChain to Ethereum). Nandwani used this process to demonstrate how native BTC can be swapped for native ETH in a decentralized way facilitated by ZetaChain's network validators across connected chains.
Published At
11/17/2023 7:37:30 AM
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