Bitcoin Enters Cross-Chain Finance đ
Cross-chain finance is often discussed through infrastructure such as $LINK . Zest is approaching the opportunity from the collateral side.
Native BTC remains locked inside a self-custodial vault on Bitcoin L1.
That vault is represented on Ethereum as a collateral record, allowing the depositor to borrow USDC without transferring the Bitcoin onto Ethereum.
This separates the location of the collateral from the location of the liquidity.
Every permitted destination for the Bitcoin is signed when the vault is created, preventing an operator from introducing a new destination later.
The design is also intended to support BitVM proof verification, allowing events surrounding the Ethereum loan to be verified before the Bitcoin vault settles.
Zest is showing that cross-chain capital does not require the underlying asset to cross chains.
#Altcoin Season#
Cross-chain finance is often discussed through infrastructure such as $LINK . Zest is approaching the opportunity from the collateral side.
Native BTC remains locked inside a self-custodial vault on Bitcoin L1.
That vault is represented on Ethereum as a collateral record, allowing the depositor to borrow USDC without transferring the Bitcoin onto Ethereum.
This separates the location of the collateral from the location of the liquidity.
Every permitted destination for the Bitcoin is signed when the vault is created, preventing an operator from introducing a new destination later.
The design is also intended to support BitVM proof verification, allowing events surrounding the Ethereum loan to be verified before the Bitcoin vault settles.
Zest is showing that cross-chain capital does not require the underlying asset to cross chains.
#Altcoin Season#
