Native Bitcoin to be available on DeFi for the first time, details here

Journalist

Posted: November 17, 2023

• This significant advancement was made possible by ZetaChain.
• SUSHI pumped 17% on the news of BTC’s integration.

Native Bitcoin [BTC] trading would be made possible for the first time in decentralized finance (DeFi), marking a huge development for the industry.

🍣 Sushi is expanding to @zetablockchain, the first EVM-compatible L1 blockchain that connects everything!

🪙 Native $BTC Swap
🚀 First Testnet deployment
⭐️ v2 & v3 AMM on Mainnet
🔗 Cross-chain Swap across 30 chains

Stay tuned for more updates!

Blog: https://t.co/fYAtPChbuP pic.twitter.com/yg8N6fFPVb

— Sushi.com (@SushiSwap) November 16, 2023

Bitcoin trading in DeFi to get easier

The landmark transition would be facilitated by the popular decentralized exchange (DEX) SushiSwap [SUSHI]. If things go as planned, DeFi traders could exchange native BTC with other networks without the need for wrapping or bridging.

As is well known, most DEXes are built atop the Ethereum [ETH] chain, making them incompatible with BTC. This has historically restricted Bitcoin holders’ participation in the ever-expanding DeFi world.

To bridge this gap, the ERC-20 compliant Wrapped Bitcoin [WBTC] tokens have been in use. You can think of a wrapped token as a tokenized version of an original token, but with cross-chain compatibility.

However, the conversion into a WBTC requires additional efforts for a BTC user, causing delays and impacting the overall trading experience.

Therefore, the new plug-and-play feature by SushiSwap could prove to be a game changer. Bitcoin’s large untapped liquidity could become available for the innovative DeFi world which has been churning out new use cases on a regular basis.

ZetaChain makes it happen

It was worth noting that SushiSwap’s launch on layer-1 (L1) network, ZetaChain, powered this development. ZetaChain’s unique token standard ZRC-20 would enable trading of different assets in a unified blockchain environment.

SushiSwap also said it would launch a DEX on the  Zetachain testnet in the first phase. After thorough testing and mainnet launch, the native trading functionality would come into effect.

How much are 1,10,100 SUSHIs worth today?

SushiSwap to go upwards?

Needless to say, the development could have far-reaching consequences for SushiSwap. At the time of writing, it was ranked well below some of the other frontline DEXes in the ecosystem, AMBCrypto discovered from DeFiLlama’s data.

Source: DeFiLlama

Governance token SUSHI pumped 17% to $1.2 on the news of BTC’s integration, as per CoinMarketCap. However, profit-taking by traders dragged the asset back to $1.12 as of press time. On a weekly timeframe, SUSHI was up nearly 20%.