Bitfinity introduces EVM compatibility to expand Bitcoin’s role in decentralized finance.
Chain Fusion Technology powers Bitfinity’s integration of Bitcoin in Ethereum DApps.
Bitfinity Network secures $12M to enhance Bitcoin’s ecosystem with advanced DeFi tools.
The Bitfinity Network, a Bitcoin Layer-2 (L2) solution, has officially launched, aiming to transform Bitcoin’s role in decentralized finance (DeFi). With $12 million in funding, the platform introduces Ethereum Virtual Machine (EVM) compatibility to Bitcoin’s ecosystem. Major institutional investors, including Polychain and ParaFi, have backed the project. Bitfinity seeks to expand Bitcoin’s utility beyond its traditional role as a store of value, providing new opportunities for decentralized applications (DApps) and DeFi tools.
Robust Funding and Strategic Investments
Bitfinity raised $7 million from key investors like Polychain’s Beacon Fund, ParaFi, and Draft Ventures. Additionally, $5 million was secured through community-driven over-the-counter (OTC) token sales. This funding aims to accelerate infrastructure development, enhancing Bitcoin’s DeFi capabilities. Notably, the financial backing underscores growing confidence in Bitcoin’s evolving functionality.
The network plans to allocate resources to expand its ecosystem and offer advanced financial solutions. These developments aim to bridge the gap between Bitcoin and Ethereum-compatible environments, providing users with more versatile tools.
EVM Compatibility via Chain Fusion Technology
Bitfinity leverages Internet Computer Protocol’s (ICP) Chain Fusion Technology. This innovation enables Bitcoin assets to operate seamlessly in an EVM-compatible framework, which was previously exclusive to Ethereum. Developers can now create DApps for Bitcoin, enhancing its functionality within the DeFi ecosystem.
For security, Bitfinity uses Chain-Key technology to support Bitcoin Schnorr and ECDSA transactions. This approach provides a robust proof-of-stake protocol, offering improved security over traditional multi-signature methods. These advancements aim to bolster confidence in Bitcoin’s role within decentralized applications.
Ecosystem Growth and DeFi Integration
Bitfinity is poised to host a range of decentralized applications. These include Sonic, Chapswap, Lendfinity, and Omnity Bridge. Each platform is designed to bring innovative financial solutions to the network. Moreover, Bitfinity has garnered support from leading DeFi figures, including Liquity’s founder. Liquity, a platform once valued at over $1 billion in total value locked (TVL), serves as a model for Bitfinity’s own financial tools.
The network’s goal is to replicate and expand upon Liquity’s success. By introducing advanced borrowing and lending models, Bitfinity aims to offer users more robust DeFi solutions.
Bitfinity’s launch represents a significant milestone in Bitcoin’s journey toward broader DeFi adoption. The combination of EVM compatibility and strong security measures could make Bitcoin more versatile within decentralized finance. With substantial funding and strategic support, the network is well-positioned to expand Bitcoin’s use cases, signaling a new era of innovation in the blockchain space.
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