The ‘Sats in Motion’ campaign continues this week, with Binance BTC (BTCB) being the latest integration into our BTC cross-chain interoperability system.
Persistence One is building an intent-based cross chain BTC swapping solution that allows users to easily swap BTC variants across multiple blockchains using an Intents-based mechanism to help reduce the problem of siloed liquidity amongst BTC-based L2s and sidechains in the BTCfi space.
We’re thrilled to integrate a BTC variant from one of the largest exchanges in the world. This will allow millions of users to seamlessly swap BTC variants across blockchains and explore more opportunities in BTCfi without selling BTC.
What is Binance Bitcoin (BTCB)?
Binance BTC (BTCB) is a tokenized variant of Bitcoin created by Binance in April 2019 on the BNB Chain.
The BTCB token is a BEP20-wrapped version of Bitcoin on the BNB Chain with a 1:1 peg for BTC locked on the Bitcoin blockchain. That means every BTCB token minted has equivalent BTC deposits to secure the BTC variant.
BTCB enables users to earn a yield on their BTC holdings across a wide variety of applications integrated into the BNB chain. It was built to allow users to explore the bubbling DeFi ecosystem on the BNB chain without having to sell their BTC holdings. Without BTCB, users would need to sell their BTC tokens and purchase DeFi assets to participate in DeFi, potentially missing out on any BTC price gains.
As BTCB is minted on a trust-based model, some concerns surround its centralization. However, the positive trade-off is that it can offer a very high level of security. By holding BTC in Binance’s custodial solution, all BTC deposits are held in secure multi-signature cold storage wallets, protected by the biggest exchange in the industry.
BTCB is seeing notable traction with an on-chain market cap value of $5.35 billion and over 1 million holders:
The TVL is steadily rising with more users exploring the benefits of bringing Bitcoin into the Binance Chain ecosystem;
In addition, Binance is fully committed to transparency. Multiple reserve addresses are publicly published to allow users to individually verify the number of BTC deposited into the custody solution against the amount of BTCB minted. They also have a Proof-of-Assets page, allowing users to see the currency supply for locked and issued assets directly on the blockchain.
There are multiple routes to buying the tokenized version of BTC. Users can trade BTC for BTCB directly on the Binance exchange. Alternatively, users can utilize the Binance Bridge or purchase BTCB on a DEX using the Binance Web3 Wallet.
Best of all, BTC can be redeemed for BTCB anytime, meaning you can claim your BTC back whenever you choose.
Why Integrate BTCB For Cross-Chain Interoperability?
With dozens of BTC variants spawned from numerous L2 solutions on Bitcoin, interoperability is essential to ensure a seamless ecosystem for the BTCfi space. Without it, users are constrained to siloed buckets of liquidity for individual BTC variants and must complete multiple operations to swap one BTC variant for another.
For example, suppose a user currently holds the ERC-20 version of WBTC but sees an opportunity on the BNB chain. In that case, the user would need to send WBTC to Binance and utilize the exchange to swap WBTC into BTCB. Then, they would need to return BTCB to their wallet to take advantage of the opportunity.
The Persistence One interoperability solution would streamline this process and enhance the user experience. It would also help accelerate innovation and adoption within the BTCfi world by making moving BTC variants across multiple chains easier.
Integrating BTCB was a no-brainer for us. As Binance is one of the largest exchanges in the world, integrating its tokenized version of Bitcoin exposes millions of holders to the BTCfi world, making it the perfect fit for Persistence One.
What is Persistence One?
Persistence One is a Bitcoin-focused cross-chain swapping solution. Our platform will use a cross-chain intents-based solution, which allows users to specify the outcome of a particular swap while allowing the Solvers to choose their routes to make it happen. It will enable users to specify the ‘what’ of a specific swap, such as the desired asset and quantity while leaving the ‘how’ for the experts to execute. Solvers can utilize unified liquidity across the entire market and take on the finality risk for users to provide incredibly fast swaps between chains with zero slippage.
To learn more about cross-chain intents, take a look at this blog.
Most importantly, Persistence One and its interoperability product will be secured by Bitcoin, leveraging the security-sharing infrastructure introduced by Babylon Labs.
As you can see, we’re very BTC-orientated, and our service for BTC builders will only integrate BTC-aligned or BTC-related assets. Our goal is to make it easier to move Bitcoin around in all its forms and help bring the BTCfi world closer together in a cohesive ecosystem to push the boundaries of what’s possible with BTCfi,
About Persistence One
Persistence One is building a Bitcoin interoperability solution to enable cross-chain BTC swaps across Bitcoin Layer 2s.
The rapid rollout of Bitcoin L2s and side chains has led to fragmentation, hurting BTCfi scalability. Using the power of intents, Persistence One will enable users to move assets across Bitcoin Layer 2s more efficiently than traditional bridging, offering fast, secure, zero-slippage cross-chain swaps.
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