Cross-chain liquidity provider LI.FI announced support for native Bitcoin swaps via ThorChain, according to an Aug. 14 statement shared with CryptoSlate.
The integration, facilitated by SwapKit, will power Bitcoin transfers between Ethereum Virtual Machine (EVM) chains, simplifying the exchange of the flagship asset for other cryptocurrencies within these networks.
Accelerating recruitment
LI.FI's new features are aimed at expanding access to Bitcoin and enabling its use in DeFi and other financial innovations.
According to the company:
“This development provides a huge opportunity for wallets, DeFi platforms and enterprise applications to enhance their services by providing users with a safe and easy way to purchase BTC or exchange it for other assets on the EVM chain.”
The company also highlighted that this feature will remove the difficulties EVM users face when purchasing Bitcoin. Users can now use their preferred wallet to directly purchase Bitcoin or exchange it for other assets.
Additionally, ThorChain will be added to LI.FI’s supported bridges, providing users with the best rates for token swaps and cross-chain transfers.
ThorChain is a decentralized cross-chain protocol that facilitates native swaps between different blockchains. It temporarily suspended operations last year to address the flow of illicit funds through the platform.
Bitcoin Layer 2
LI.FI also plans to extend support to Bitcoin Layer 2 (L2) solutions, aiming to increase application flexibility and leverage the growth potential of the Bitcoin network.
Bitcoin L2 is a protocol designed to solve Bitcoin's scalability problems, increase transaction speeds, and lower transaction fees. Notably, part of these solutions introduces smart contract functionality to the blockchain, greatly expanding its possibilities.
These protocols have become increasingly popular over the past year, raising roughly $100 million collectively in the second quarter of this year, but Alex Thorne, head of research at Galaxy Digital, warned that the networks face significant challenges in the long term due to the high cost of posting data to BTC.
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