Interlay + Encode
- 1. Alexei Zamyatin, Co-Founder & CEO 19 August 2021 Encode Club - Polkadot Demo
- 2. Vision Realizing the full potential of decentralized finance: access any asset on any chain
- 3. Mission: Bitcoin Anywhere A trillion dollar market dominated by centralized exchanges… Our mission is enable everyone to invest, earn and pay with BTC on any blockchain - directly from their wallet.
- 4. Interlay: From Academia to Industry Founding of Interlay. First funding via open source research grant. Specification and PoC. 2019 Implementation of XCLAIM for Polkadot: PolkaBTC. Funding via Web3 Foundation grant. 2020 Launch of interBTC Main gateway for Bitcoin in Polkadot’s DeFi ecosystem. 2021 Bridge Network & Products BTC Bridges to other chains and cross-chain DeFi products for BTC 2021 2017- 2020 on security, DeFi, and interoperability: 30+ papers, 700+ citations. Designed XCLAIM Protocol Research Imperial College London PhDs UK, Limited Company Web3 Foundation Grants Polkadot’s main BTC Gateway interBTC on all major chains and DeFi apps
- 6. A 1:1 BTC-Backed Asset
- 8. …Operated by the Community... ...with their own incentives. Vaults invest funds to insure BTC (~150% collateralization) LPs providing BTC liquidity Collators preparing blocks
- 9. Why interBTC? Secured by Insurance You can always: - Redeem interBTC for BTC, OR - Be reimbursed in collateral at a beneficial rate (insurance) → Only “trust” that Bitcoin & Polkadot are secure
- 10. Why interBTC? Secured by Insurance You can always: - Redeem interBTC for BTC, OR - Be reimbursed in collateral at a beneficial rate (insurance) Radically Open - Decentralized governance from day 1 - Anyone can become a Vault or Relayer. You can run your own Vault - Censorship resistant
- 11. Why interBTC? Secured by Insurance You can always: - Redeem interBTC for BTC, OR - Be reimbursed in collateral at a beneficial rate (insurance) Radically Open - Decentralized governance from day 1 - Anyone can become a Vault or Relayer. You can run your own Vault - Censorship resistant Audited & Peer-reviewed - Audited by industry leaders. Soon: formal verification - Based on top-tier, peer-reviewed XCLAIM paper - Assessed by community & supported by grants
- 12. Built on Polkadot. Connected to All. Parachain built with Rust & Substrate ● Scalable (1000+ tps) ● Robust (Rust > Solidity) ● Flexible (reuse Bitcoin’s crypto libraries) interBTC will be on all chains ● Phase 1: BTC → Polkadot → Ethereum, Cosmos, ... ● Phase 2: Direct bridges on demand
- 13. interBTC Today: Public Testnet 40k+ minting operations by a decentralized network: 134 Vaults Collateralized & securing BTC 101 Relayers keeping interBTC up to date with Bitcoin Hundreds LPs providing BTC (testnet) liquidity bridge.interlay.io
- 15. Tech Highlights Multi-Collateral Insurance Maintained by network governance: ● Whitelisted collateral assets ● Ceilings for each collateral asset → MakerDAO-like model ● Why? ○ Stablecoins for stability ○ Interest earning assets for capital efficiency Collateral Delegation ● Users can “nominate” Vaults = lock collateral on their behalf ● Secure threshold → 110% Vault : 40% users = 150% collateral ● Why? ○ User: earns rewards ○ Vault: leveraged position. More rewards, but also higher liquidation risk
- 16. interBTC vs other/centralized wrapped BTC Decentralization Who can join as maintainer? Collateral to secure BTC? wBTC Centralized Not possible None renBTC Centralized (multisig controlled by dev team) Not possible None (potentially own token) tBTC Distributed Restricted number of signatories Static Pre-selected set of early KEEP holders & co. ETH 150% over-collateralized interBTC Decentralized Unrestricted number of Vaults Dynamic Anyone can become a Vault, no restrictions Multi-collateral support 150% over-collateralized, up to 40% can be nominated!
- 17. How Can I Get Involved? Go test interBTC: bridge.interlay.io or run a Vault (docs.interlay.io/#/vault/overview) Join our community: Interlay.io @interlayHQ & @polkaBTC github.com/interlay Discord Code: KgCYK3MKSf Why? ● Incentivized testnet & challenges ● Ambassador program ● Be first to know about crowdloans and launch