3 Reasons Why Skybridge is the Easiest Way to Use BTC in DeFi on Ethereum
Skybridge has been live since the successful release of the Chaos-MainNet on December 28th.
What does it mean? Users have started to swap their BTC to WBTC back and forth, metanodes have been running smoothly. They have been collecting network fees that are shared with liquidity providers who deposited BTC or WBTC to any side of the bridge.
Maybe you still wonder why Skybridge should be used. We’ve got you covered! This short article introduces three reasons why Skybridge has become the easiest way to transfer your bitcoins in the DeFi ecosystem on Ethereum.
1. One transaction is all it takes ↪️
Skybridge makes cross-chain interactions very simple.
You have to deposit your BTC to an address on the Bitcoin blockchain to receive WBTC to the Ethereum address you specified.
Unlike other protocols, you don’t need any specific wallet to use Skybridge. We support all wallets such as MetaMask, Ledger, Trezor, Trust Wallet, Coinbase Wallet, and any sort of cold (and hot) storage infrastructure you may have.
If you wish to redeem your native bitcoins, deposit your WBTC tokens to an address and receive BTC to the address specified (on the Bitcoin blockchain).
Yet, Skybridge’s simplicity is not at the expense of security. Skybridge is secured by a network of metanodes using cutting-edge technology: Threshold Signature Schemes (“TSS”). If they misbehave, network validators lose their financial stake.
2. You don’t need to trust anyone🕵️
If you have been in the DeFi ecosystem for a long time, you probably (already) value privacy.
However, if you are a new user and followed recent news, you might have heard scary stories like exchanges or centralized parties getting user information leaked.
With Skybridge, privacy is a right, not an option.
WBTC is tradable on many centralized exchanges but getting there often includes sharing your information with someone, including sensitive information such as mail address, IP location, and (often) KYC documents.
In addition to these, centralized exchanges also have (1) transaction fees (2) withdrawal fees. For instance, on Coinbase Pro, transaction fees start at 0.50%, and withdrawal fees fluctuate over time. Even if these fees seem low, you cannot know whether they will not change without your consent. In comparison, Skybridge swaps only cost 0.25%.
Finally, with centralized platforms, you need to trust them to properly secure your assets while exchanging BTC to WBTC (and vice versa). Platforms like Uniswap are great to trade without trusting anyone (except yourself) to hold custody of your assets. Why would a gateway to DeFi require any trusted party?
With Swingby Skybridge, the world of DeFi is just one transaction away. No trusted party; it is all non-custodial and fully decentralized.
3. It bridges to the king of BTC tokens: WBTC 👑
Why should you use WBTC instead of RenBTC/HBTC/BBTC/pBTC/tBTC?
One reason: WBTC dominates with a market cap representing more than 80% of the total supply of BTC pegged tokens issued on Ethereum.
With a supply of ~110k bitcoins, WBTC benefits from positive network effects and is used widely in the DeFi space on platforms like Curve, Uniswap, SushiSwap, Loopring, Deversifi, and more.
In comparison, the second-largest pegged token on Ethereum, RenBTC, had a supply of ~12k BTC, roughly 10% of the supply of WBTC.
Since the BTC pegged token space on Ethereum seems to be “winner takes all”, Swingby Skybridge does bridge your bitcoins to the best in class.
Try it yourself!
Now, you know why Swingby Skybridge is the easiest way to get started in the DeFi space. It is simple to use but fully decentralized with a network of metanodes with a financial bond at stake.
Wait! We are only getting started. Our roadmap includes:
- Integration with price oracle providers like Band Protocol and Bluzelle for additional safety mechanisms
- A referral program
- Community governance portal with the SWINGBY token
- Fee discounts with SWINGBY tokens
- ERC20 token bridges to other networks
Anyway, don’t trust our word for it. Try it by yourself. You are just one transaction away from #DeFi.