Tapping ZetaChain’s Interoperability
Sushi, a leading decentralized finance (DeFi) platform, has formed a strategic alliance with ZetaChain, an interoperability platform to revolutionize cross-chain transactions. The collaboration enables Bitcoin swaps on 30 blockchain platforms, making DeFi more accessible.
This joint venture enables Sushi’s deployment of its decentralized exchange (DEX) in the ZetaChain ecosystem. In addition, the move allows users to trade Bitcoin (BTC) directly without wrapping it across multiple blockchains.
The initiative’s leaders believe it’s a bold move towards decentralized and permissionless trading. This integration relies on using Sushi’s v2 and v3 automated market makers and SushiXSwap’s cross-chain swapping.
Ankur Nandwani, a pivotal contributor to ZetaChain, highlighted the vital role this partnership can play in connecting Bitcoin users with the growing DeFi sector. Nandwani cited precedent-setting cases such as THORChain to quash doubts about the feasibility of enabling BTC transactions across chains without wrapping assets.
He highlighted alternative approaches like Bitcoin side chains, showing how interoperability solutions are developing. Nandwani praised ZetaChain’s innovative approach in allowing developers to create Bitcoin-compatible DApps. These applications can handle contracts and transactions on multiple blockchain platforms.
The Upcoming Mainnet Launch
ZetaChain’s testnet success paves the way for a revolutionary mainnet launch. By partnering with DeFi giants like SushiSwap, the platform aims for validation and practical benefits. SushiSwap’s mastermind, Jared Grey, hailed this integration as a historic moment for DeFi, referring to the possibility of swapping Bitcoin seamlessly as a fundamental change for the entire sector.
This collaboration is in two key stages. SushiSwap plans to launch a DEX on ZetaChain’s testnet initially, setting the stage for asset swaps and liquidity support. This stage involves beta testing and the provision of incentives to improve applications.
Based on this development, SushiSwap has become a strategic partner to ZetaChain for the mainnet deployment. Many crypto community players have lauded the launch, saying it paves the way for full Bitcoin interoperability.
Nandwani’s detailed explanation hints at the upcoming reality of seamless BTC cross-chain swaps. It will start a new era in decentralized finance, focusing on innovation and collaboration.
Moving Value Across Chains
An omnichain swap contract on ZetaChain allows users to move value between chains like Bitcoin and Ethereum. To do this, the user sends a Bitcoin token transfer to a specific address, including a note within the ZetaChain contract address and transfer amount.
On Ethereum, the user determines the value as either Ether or USD Coin and provides the address for the transfer. However, validators on ZetaChain own the receiving address, the TSS address.
Furthermore, when someone sends Bitcoin to this address, validators on ZetaChain lock it and confirm this action. Then, if enough validators agree, a transaction can be made from Bitcoin to ZetaChain.
The ZetaChain contract waits for transaction confirmation before converting the transferred Bitcoin into ZRC-20 BTC tokens. After that, users can exchange these tokens for other tokens, such as ZRC-20 ETH.
A crucial part of this transfer process is that ZetaChain destroys the ZRC-20 ETH tokens and generates a transaction from ZetaChain to Ethereum. ZetaChain validators then approve the transaction and send ETH to the recipient’s Ethereum address.