The decentralized finance (DeFi) protocol Sushi has achieved a milestone by adding support for the use of native Bitcoin (BTC) on its protocol through an expansion to ZetaChain. This development, as announced in a blog post by Sushi on Thursday, enables users to seamlessly swap BTC across 30 different networks without the need for “wrapping” the coin as an ERC-20 token, as is typically done on the Ethereum network.
ZetaChain, functioning as a layer 1 blockchain and developer platform, positions itself as the “only blockchain you’ll ever need.” Its Omnichain Smart Contracts facilitate cost-effective, efficient, and secure transfers of digital assets across various blockchain networks. This integration with Sushi allows for greater interoperability and flexibility in handling Bitcoin within the DeFi space.
ZetaChain has previously introduced the innovative ZRC-20 token standard, which facilitates the development of native cross-chain applications for engaging in transactions with various tokens, including Bitcoin and Ethereum-based ERC-20 tokens.
The collaboration between Sushi and ZetaChain is positioned to usher in DeFi 3.0, providing users with a decentralized and permissionless approach to trading native BTC in the DeFi space for the first time.
This integration encompasses Sushi’s popular offerings, including the Sushi v2 automated market maker (AMM), v3 AMM, and SushiXSwap, the cross-chain swap solution. Users will now have the capability to seamlessly swap native BTC across 30 networks, accessing previously untapped liquidity on the Bitcoin network. This move contributes to the ongoing evolution and expansion of decentralized finance capabilities.
In a comment, Jared Grey, Head Chef at Sushi, emphasized the groundbreaking nature of the collaboration, describing it as “a new chapter in DeFi, where we see more practical use cases of interoperability and enhanced connectivity.”
Lead Sushi Developer Jiro highlighted the compatibility of ZetaChain with the Ethereum Virtual Machine (EVM), streamlining the integration process. He mentioned, “Using our existing Ethereum smart contracts on ZetaChain will create a lot of new use cases for Sushi. For example, with the introduction of SushiXSwap, our cross-chain swap, we’ll be able to offer Bitcoin swapping across 30 different chains.”
The team is planning to launch a decentralized exchange (DEX) on the ZetaChain testnet, with full functionality for Bitcoin interoperability to follow upon the mainnet’s launch. This phased approach indicates a careful and systematic rollout of the integration to ensure a smooth and successful deployment.