Interlay, the team building Polkadot’s trustless Bitcoin Bridge, PolkaBTC, has completed the integration with Band Protocol to secure the bridge through decentralized and robust Bitcoin price and fee feeds. Oracles provided by Band Protocol will be critical in maintaining a secure collateralization ratio on the bridge and overall system security.
“This integration is a first step towards a more robust collateral balancing mechanism on PolkaBTC. Band Protocol is one of the leading decentralized and scalable oracle providers on Polkadot. We look forward to further collaboration in the long-term.”
Alexei Zamyatin, CEO & Co-Founder of Interlay
PolkaBTC is the trustless representation of Bitcoin on Polkadot. Once deployed, users will be able to mint 1:1 Bitcoin-backed assets onto Polkadot, as PolkaBTC, and use these across a wide range of applications, including decentralized exchanges, stablecoins, and lending protocols.
“Band Protocol is thrilled to integrate with the first decentralized cross-chain bridge on Polkadot, PolkaBTC, built by Interlay and supported by the Web 3 Foundation. This marks a major milestone for all teams and affirms Band Protocol as a key oracle player in the Polkadot ecosystem for many more teams and projects to follow.”
Soravis Srinawakoon, CEO & Co-Founder of Band Protocol
What makes PolkaBTC unique is the strict dedication to being trustless and decentralized:
- Trustless. The bridge has no central authority. Right from the start, PolkaBTC will be run by a decentralized network of individuals, community members, and companies.
- Decentralized. In the spirit of permissionless systems like Bitcoin, anyone can participate in operating the bridge: contrary to other approaches, you do not need permission or any additional token to become a maintainer and start earning fees.
As a holder of PolkaBTC, you have the following guarantee: You can always redeem PolkaBTC for BTC, or be reimbursed in the collateral currency at a beneficial rate.
PolkaBTC will utilize Band Protocol decentralized oracles to maintain a secure collateralization ratio on the bridge. Through reliable and timely reporting of Bitcoin price fluctuations achieved through Band Protocol, PolkaBTC ensures that there is always sufficient collateral locked in the system and invokes auctions and liquidations to prevent imbalance.