One Crypto-Dollar to Convert Them All – They Want to Bring DeFi from Ethereum to Bitcoin

A DeFi ecosystem on Bitcoin? – While Ethereum is reaching records of gas usage and costs, RSK wants to develop the DeFi ecosystem on Bitcoin Hero. Thus, after having recently integrated a Uniswap-like, it is the DAI’s turn to be ported to the Bitcoin sidechain .

RSK: la sidechain de Bitcoin

RSK is a Bitcoin network sidechain . In other words, RSK is a blockchain that evolves in parallel with Bitcoin using a tokenized version of it as its primary asset.

In practice, its objective is to allow the execution of smart contracts in a Bitcoin environment .

DAI focused on Bitcoin

The project announced on October 6 the porting of MakerDAO’s DAI stablecoin to its sidechain .

To do this, the RIF (RSK infrastructure framework) teams used a tool developed a few months ago, called RSK-Ethereum token bridge . This allows to tokenize native Ethereum assets on the RSK blockchain.

In fact, tokens are blocked in a smart contract on Ethereum before being created in a tokenized form on the RSK blockchain

“The interoperability bridge locks the original token such as DAI onto the Ethereum blockchain while creating an ERC777 side token that can roam freely on the RSK network. This helps maintain the existing supply of tokens while allowing their distribution between chains. „- The publication.

This feature was first audited by Trail of Bits and then reviewed by the MakerDAO Foundation .

Bitcoin and Ethereum, the unlikely alliance

With this innovation, the RSK network hopes to become a viable alternative to Ethereum and alleviate the cost issues facing the network.

“At a time when Ehtereum gas prices have reached high levels, this integration allows access to DAI at low cost through the RSK blockchain. “

A situation to say the least preposterous when we know that Ethereum has long been presented as an alternative to too high fees on Bitcoin , but it seems that the wheel has turned.

RSK even wants to go further by developing its own DeFi ecosystem on the Bitcoin sidechain . Thus, the protocol recently introduced RSK Swap a fork of Uniswap on the RSK network. In fact, the tokenized version of the recently created DAI will be tradable on this platform via two pools: RBTC-DAI and RIF-DAI .