Interlay is a DeFi platform focused on bridging Bitcoin with Polkadot and other blockchains, enabling Bitcoin holders to engage in DeFi without leaving Bitcoin’s security. Its core features and goals include:
- Bitcoin on Polkadot (InterBTC): Creates a 1:1 Bitcoin-backed asset, InterBTC, that’s usable across various blockchains, maintaining full collateralization and trustlessness.
- Decentralized and Trustless Infrastructure: Utilizes decentralized vaults and a collateralized debt position system to ensure the security of Bitcoin assets on the platform.
- Cross-Chain Interoperability: Leverages Polkadot’s technology to enable seamless Bitcoin movement across different blockchain ecosystems, enhancing liquidity and DeFi utility.
- Expands DeFi Opportunities for Bitcoin: Offers Bitcoin holders access to lending, yield farming, and trading within the DeFi space while maintaining asset security.
- Community Governance and High Security: Involves the community in governance decisions, supported by regular security audits and protective mechanisms like over-collateralization and insurance pools.
Interlay aims to integrate Bitcoin into the DeFi ecosystem, facing challenges like technical complexities, security assurance, and regulatory compliance. Its development signifies a step towards a unified, accessible DeFi landscape, enriching both Bitcoin’s utility and the broader DeFi domain.