Revolutionary Bitcoin Swaps: LiFi and ThorChain Join Forces for EVM Integration

Summary:

Li.Fi integration with ThorChain enhances Bitcoin swaps on EVM chains.
Simplifies Bitcoin transactions for users across various networks.
Addresses EVM user challenges in buying and swapping Bitcoin.
ThorChain offers optimal rates for token swaps and cross-chain transfers.
Future support for Bitcoin Layer-2 solutions aims to boost scalability and transaction speeds.

The new Li.Fi integration with ThorChain significantly enhances Bitcoin's DeFi accessibility on EVM chains. This collaboration, announced on August 14, enables users to perform native Bitcoin swaps seamlessly across various networks.

Bitcoin Network

Enhancing Bitcoin Transactions

LI.FI, a cross-chain liquidity provider, has introduced a feature that simplifies Bitcoin transfers between Ethereum Virtual Machine (EVM) chains. This integration, facilitated by SwapKit, not only streamlines the exchange of Bitcoin for other cryptocurrencies but also aims to boost adoption in decentralized finance (DeFi).

According to LI.FI, this development presents a substantial opportunity for wallets, DeFi platforms, and enterprise applications to enhance their offerings by providing users a secure and easy way to buy BTC or swap it for other assets on EVM chains.

Addressing EVM User Challenges

The integration addresses the difficulties faced by EVM users in purchasing Bitcoin. Users can now buy Bitcoin directly or swap it using their preferred wallets, enhancing the overall user experience.

ThorChain’s Role

ThorChain, a decentralized cross-chain protocol, has been added to LI.FI’s supported bridges, offering users optimal rates for token swaps and cross-chain transfers. Last year, ThorChain temporarily paused operations to address the flow of illicit funds via its platform, ensuring a safer trading environment.

Future Support for Bitcoin Layer-2 Solutions

LI.FI also plans to extend its support to Bitcoin Layer-2 (L2) solutions, which will enhance application flexibility and capitalize on Bitcoin’s growing potential. These protocols are designed to solve scalability issues, boost transaction speeds, and lower transaction fees. Notably, some introduce smart contract functionality, which broadens Bitcoin's potential significantly.

The protocols have gained popularity, raising nearly $100 million in the second quarter of this year. However, experts warn of long-term challenges due to the high costs associated with posting data on the Bitcoin network.

Source: CryptoSlate