BTC/ETH Bridge
A cross chain bridge, staking and lending protocol for BTC and ETH built on the Lightning Network
The problem
The spec for this project was an omnichain Bitcoin liquidity protocol that allows users to supply native Bitcoin as liquidity and earn fees for doing so.
Authentication
We needed to create a system that would allow users to authenticate with their Bitcoin wallet. We chose to use the Lightning ID as it is the standard for this type of authentication and is supported by most wallets. On the Ethereum side we chose to use SIWE (Sign-In with Ethereum) as it is the standard for this type of authentication and is supported by most wallets.
Bridge
The bridge was created to allow users to bridge their assets across various EVM chains. LayerZero was used to handle the omnichain communication.
Minting
The minting was created to allow users to mint and unwrap their assets on Ethereum chains.
Lending
We needed to create a system that would allow users to lend and borrow assets on the Ethereum chains. The Frax Finance model was used to create a trustless, permissionless, and non-custodial lending platform that provides lending markets between any two ERC20 tokens. Custom markets can be created by the protocol or whitelisted by the DAO.
Project outcomes
This project taught me a lot about the complexities of cross-chain communication and the importance of security and decentralisation. It was a challenging project, but I learned a lot and grew as a developer. Unfortunately this project was derailed due to factors outside of our control, however the team formed through this project have continued to work together and are now working on new and exciting projects.