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Interlay raises $ 6.5 million to bring Bitcoin DeFi to Polkadot

The central theses

  • Interlay hopes to bring Tokenized to and other networks.
  • Interlay has raised 6.5 million US dollars in a funding round led by the DFG.
  • The project plans to be tokenized Bitcoin in the Polkadot– Introduce the ecosystem.
  • The team hopes to have a polkadotParachain to bring to market the bitcoin-focused DeFi is dedicated.
  • Interlay raised $ 6.5 million to introduce tokenized Bitcoin on Polkadot.

The project hopes to launch tokenized Bitcoin on Polkadot and later expand its offering to other Layer 1 blockchains. Interlay, a Polkadot-based cross-chain interoperability project, has closed a $ 6.5 million financing round.

The DFG led the increase, while IOSG, KR1, Hypersphere, Nexo Finance, D1 Ventures and Signum Capital participated. This will be followed by a $ 3 million seed funding round in July 2021.

With Interlay, users can lock Bitcoin on a decentralized network of secured vaults that connect Bitcoin and Polkadot. Users can then mint a token linked to Bitcoin called interBTC and use it in the Polkadot ecosystem. interBTC can be used as collateral for DeFi loans and other activities like yield farming.

Tokenizing Bitcoin is not a new concept. According to DeFiPulse, 328,651 BTC worth around $ 16.1 billion are already living in forms like that Wrapped Bitcoin from BitGo and the BTC of the Keep network. Meanwhile, Interlay’s solution aims to become the first tokenized Bitcoin launched on Polkadot via its Parachain.

DFG founder and CEO James Wo said:

“The team was very proud to be an early supporter of Interlay. The solution expands the cross-chain possibilities for Bitcoin. “

Unlike other tokenized bitcoin protocols that often depend on solutions like centralized bridge contracts, the Interlay team claims that interBTC is completely undisclosed. The founders of interBTC developed a decentralized protocol called XCLAIM to block, spend and redeem Bitcoin. The system is supported by unprotected security vaults that maintain the physical support of interBTC.

In the press release announcing the raise, Interlay Co-Founder and CEO Alexei Zamyatin discussed the project’s value proposition,

“Bitcoin DeFi has so far relied on centralized providers and interBTC offers a trustworthy and decentralized alternative.”

The interoperability project began its crypto journey after receiving a grant from the Web3 Foundation in March 2020. It currently operates a Canarian network called Kintsugi Kusama. The Interlay team says their next step is to introduce a parachain. Polkadot has already completed its first parachain slot auctions and the first five auction winners.

Interlay will participate in the second auction series of Polkadot participate from December 23, 2021. If it secures a parachain, Interlay will endeavor to integrate interBTC into the DeFi projects with their parachains such as Acala and Moonbeam. After that, the roadmap includes plans to start in other networks such as,,, and.

Source: Crypto News Deutsch

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