Austin Federa, the head of strategy at the Solana Foundation, expressed pleasure about the addition of tBTC integration to Wormhole. He tweeted, “Solana is about to be the best place to trade Bitcoin.”
Wormhole, a link between Solana and other leading networks for decentralised finance (DeFi), has welcomed tBTC to the platform.
A scalable Bitcoin alternative called BTC gives users access to the cross-chain DeFi and Ethereum ecosystems. The network powering tBTC is called Threshold DAO.
Both Ethereum Virtual Machine (EVM) chains like Arbitrum, Optimism, and Polygon as well as non-EVM networks like Solana, Aptos, Sui, and Cosmo will be able to accept tBTC thanks to the Wormhole integration.
Wormhole’s integration with ERC-20 tokens is based on a cutting-edge method of bridging that permits capital deployment to Ethereum L2s without liquidity fragmentation. A canonical token local to each new ecosystem will be introduced in place of wrapping tokens for each chain, and tBTC will be created on Ethereum.
In the middle of April 2023, Wormhole offered an incentive programme to the Threshold community with the goal of making tBTC the predominate BTC type in on-chain DeFi. The project garnered a lot of community support and was fully authorised on April 29, 2023.
In order to reward liquidity providers with token choices to mint tBTC to be distributed across as many as 20 new ecosystems of Wormhole-connected chains, Threshold will integrate with the Wormhole Token Bridge.
By depositing their Bitcoin on the Bitcoin blockchain and locking it there (without employing a custodian), users may produce tBTC, which then generates a similar tBTC token on the Ethereum network.
