The Decentralized Finance (DeFi) market has grown to become a space worth more than $200 billion. Yet it continues to explode as developers find an innovative method to involve the participation of users from every corner of the crypto space. In doing so, one cannot forget about the subjects of the king coin, Bitcoin.
Bitcoin DeFi set to explode
Bitcoin was created with the intention of revolutionizing the future of finance. And while it did inspire developers, it was Ethereum that truly made revolutionizing finance possible by decentralizing it using smart contracts.
Until a while back, Bitcoin lacked the support for DeFi, which is why it could not become an integral part of the financial metamorphosis, but that has changed now and is continuing to do so.
Mintlayer, a Bitcoin sidechain, and Coinbase-backed Bitcoin-based DeFi platform Portal have joined hands to further these efforts. This new partnership is set to bring Portal’s uncensorable cross-chain DEX functionality to Mintlayer, boosting Bitcoin-based decentralized finance (DeFi).
Commenting on the partnership, Mintlayer CEO Enrico Rubboli stated,
“Mintlayer is a tokenization layer built on top of Bitcoin, enabling native swaps with BTC, including using the Lightning Network. Portal’s cross-chain DEX can help make multi-chain implementations more viable, allowing token issuers to take advantage of the unique capabilities of different protocols, including Bitcoin sidechains like Mintlayer, thereby plugging the entire web3 ecosystem to the most decentralized and valuable blockchain, and the world’s hardest money.”
Additionally, the addition of sidechain assets issued on Mintlayer will increase the number of trading pairs available to Portal DEX users while also benefitting Mintlayer by making its assets accessible to a more extensive user base.
This way, both the platforms will be able to provide their users with the opportunity to interact with the DeFi ecosystem in a private and secure environment with the lowest possible fees, which is another big issue for the DeFi space.
Gas fees in the crypto space
Ethereum, also known as the king of DeFi, is riddled with high gas fees, which forces developers and investors to venture onto other chains, giving rise to the likes of Terra, Avalanche, Solana, and more. A simple ERC-20 transfer on Ethereum can cost up to $12, with the fees for Uniswap transactions exceeding $34.
This is what Portal and Mintlayer intend to keep their investors away from.
Since Bitcoin’s DeFi space is still developing, users would want access to more options that are currently being offered by other chains, which low gas fees and emerging partnerships such as Portal and Mintlayer will provide to the users.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2022/04/portal-partners-up-with-mintlayer-to-boost-defi-on-bitcoin