Bifrost plans to launch native Bitcoin collateralization service BTCFi.

According to BlockBeats news on February 6th, Bifrost, a multi-chain middleware platform, will launch a native Bitcoin collateralization service called BTCFi, which aims to provide decentralized income for Bitcoin holders. The uniqueness of BTCFi lies in its ability to provide a decentralized and secure revenue solution. As Bitcoin is a PoW system, there is no native collateralization, but BTCFi can serve as an alternative solution to this problem. BTCFi operates on a decentralized protocol without the need for intermediaries or third-party custodians. The core of the protocol is BtcUSD, an over-collateralized stablecoin supported by BTC. To support native BTC integration into BTCFi, fraud-proof will be used to verify the operation of the relay, which is the method adopted by many Optimistic Rollup L2s on Ethereum. According to the BTCFi roadmap, Bifrost plans to build the BTCFi ecosystem in the first quarter, integrating all DeFi components for a circular ecosystem, supporting WBTC (ETH, Polygon, Arbitrum), and BTCB (BNB); in the second quarter, an automatic one-click collateralization service for BTC will be launched; in the third quarter, native Bitcoin support will be provided, namely, the launch of a native BTC deposit service verified by all Bifrost nodes validators.