LayerZero Aims to Create One, Unified Experience for BTC.b,

Published by AVAX on

LayerZero Aims to Create One, Unified Experience for BTC.b, Expanding BTC.b Transfers to Ethereum, Polygon, Arbitrum, Aptos, and more.

BTC.b can now be quickly transferred to any blockchain supported by LayerZero

BTC.b, a token representing Bitcoin on Avalanche and automatically bridged (transferred cross-chain) in Core, is now an Omnichain Fungible Token (OFT) that quickly, securely transfers to and from Avalanche and Ethereum, Polygon, Arbitrum, Aptos, or any other blockchain supported by LayerZero in the future.

Since Core launched in June 2022, Bitcoin holders transferred a total of 2,700 BTC (~$45M in USD) [Source] to Avalanche. Compared to other natively bridged Bitcoin assets, BTC.b allows users to freely transfer native Bitcoin without having to rely on custodians. With BTC.b, users can immediately use their native Bitcoin on dApps as BTC.b and quickly convert their BTC.b back to native Bitcoin.

LayerZero’s Omnichain Fungible Token (OFT) makes BTC.b composable across multiple blockchains–no more fragmented liquidity. Users of BTC.b don’t have to change their workflows and can interact directly with the BTC.b token contract. Just use LayerZero’s Bitcoin Bridge to transfer BTC.b to any of the supported LayerZero blockchains.

BTC.b as an OFT allows for Bitcoin to exist on many more dApps and blockchains than ever before. Now, BTC traders can create more complex strategies around their Bitcoin, like hedging and high-frequency arbitrage opportunities.

How You Can Use Bitcoin on Avalanche and Beyond

  1. Transfer Bitcoin using Core and receive BTC.b
  2. Use BTC.b in Avalanche DeFi dApps
  3. Expand your strategies across multiple blockchains using LayerZero’s Bitcoin Bridge

OFT Aims to Maximize Tokens’ Composability

OFT is an extensible token contract. There are four main benefits for tokens adopting the OFT standard.

  1. Own your contracts
  2. Own your security
  3. Own your fees
  4. Let the world compose you

Own Your Contracts

Eliminate the need for additional wrapped and bridged assets across blockchains, increasing your token’s utility. Additional bridges interested in supporting your token will just have to integrate your native token.

OFT enables a single token version (BTC.b), directly from the issuing protocol (Avalanche).

Own your security

Completely control your own security. With LayerZero’s modular security, all applications have the ability to explicitly own their security or leverage the most secure existing configurations.

Own your fees

No need to incur additional fees for BTC.b transfers–just pay the cost of gas. With transfers built directly into the contract, users can forgo paying an additional bridge provider per transaction. Transaction fees are constant and bypass the challenges of securing the most efficient route for large transfers to avoid onerous fees.

Let the world compose you.

Use one unified standard for all protocols and platforms (e.g., bridges, aggregators, CEXs), and adopt your token as easily as adopting an ERC-20. This standard opens up the sendAndCall functionality which allows your token to be externally composed in all manner of DeFi applications. Go from one liquidity pool on Chain A to another liquidity pool on Chain B, or transfer and stake BTC.b on another chain in a single transaction. All of this functionality is opened up directly at the token layer and included in the token contract.

How did BTC.b do this?

OFT was implemented on BTC.b with just two 10-line code files.

First, BTC.b implemented the ProxyOFT contract that enables the existing BTC.b token to keep its original address, while remaining transferable to other chains:

BTC.b then implemented the standard OFT contract and deployed this on all blockchains the protocol wished to deploy its native token on:

That’s it!

If you’re interested in adding OFT capabilities to your token, please reach out directly to the LayerZero team.

For DeFi users, LayerZero’s integration with BTC.b is just one step towards a more composable, efficient DeFi ecosystem. Check out how seamless the omnichain experience is for BTC.b by using the Bitcoin Bridge.

About Avalanche

Avalanche is the fastest smart contracts platform in the blockchain industry, as measured by time-to-finality, and has the most validators securing its activity of any proof-of-stake protocol. Avalanche is blazingly fast, low cost, and green. Any smart contract-enabled application can outperform its competition by deploying on Avalanche. Don’t believe it? Try Avalanche today.

Website | Whitepapers | Twitter | Discord | GitHub | Documentation | Telegram | Facebook | LinkedIn | Reddit | YouTube

LayerZero Aims to Create One, Unified Experience for BTC.b, was originally published in Avalanche on Medium, where people are continuing the conversation by highlighting and responding to this story.


Categories: Avalabs