Attempt for Addition of Defi to BTC Network by Smart Contract Protocol RSK



By Awi Khan // in Bitcoin


Through the previous year, the decentralized finance (Defi) ecosystem was ruled by the Ethereum, but several other blockchain schemes plan to contribute to the conflict. The smart contract protocol RSK, as a second course, tries to induce the Defi demand to the BTC blockchain. Note that there are also some other RSK-based Defi projects in the race.

Customers grasp applications in the Defi world that alternate traditional finance ideas like announcing assets, lending, borrowing, trading, and collecting interest in a noncustodial way. Crypto enthusiasts have indeed seen the productive and seldom very experimental Defi projects entertained on the Ethereum blockchain.

During 2020 the trends of Defi achievements and interesting mistakes are also underlined without any doubt. While using all the funds in these projects, undoubtedly other blockchains desire a bit of the Defi pie and RSK is trying to grasp the controls.

RSK is known to be an open-source platform letting for smart contracts grasped by the BTC (Bitcoin) network. The manner is attained by merge-mining as the RSK network is mined by Bitcoin miners showing 52 exahash (EH/s) of hashrate.

When visiting the developer page of RSK, the website displays “Defi for bitcoin” and point out several growing projects. For example, RSK concedes for stablecoins, and the projects Money on Chain and RIF permit for pledge tokens.

Lending, borrowing, and liquidity ideas from the RSK network are purchased by trading stages such as Huobi, Liquid, and Coinswitch. RSK began its token bridge on 6 February 2020, and the protocol lets for cross-chain operability exchange between both RSK and Ethereum.

Just like Uniswap, the RSK developers announced the decentralized exchange (dex) Rskswap recently. Rskswap consumers can purchase the AMM (automated market maker) to exchange ERC20 tokens and offers liquidity. The operator and provider of the platform said that “On Rskswap, any ERC20 token can be placed”.

The Rskswap statement reported that “There is no requirement of permission. Every token owns its smart contract and liquidity supply. If none is there, it can be made with ease. When a token possesses its exchange smart contract and liquidity supply, everyone can sell or buy the token or add to the liquidity supply while getting a fee of liquidity provider up to 0.3%”.

The platform Rskswap is a stream of the Uniswap protocol, and the Rakswap describes this on its website home page.

Another step by RSK is they tokenized BTC (bitcoin) known as RBTC, and the RSK creator remarks there are 338 RBTC worth $3.6 million, secured into the system to-date. RBTC can be purchased on Defi apps such as the Rskswap platform and work as security for loans and pegging projects alike the RIF Dollar.

Many bitcoiners are delighted to notice what RSK will convey to the bitcoin-fuelled Defi area, and the advanced use claims RSK smart contracts will contribute. RSK smart contracts are also being purchased by the California Energy Commission employed in a carbon-credit trading guide.

About the author, Awi Khan

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