Introduction
Last updated
Last updated
iBTC (formerly dlcBTC) is a decentralized wrapped Bitcoin offering a theft-proof bridge to DeFi, backed by the security of the Bitcoin network.
The reliance on third-party services introduces significant risks, as evidenced by custodian failures and bridge hacks, collectively leading to over $140 billion in losses. Traditional methods of bringing Bitcoin into the DeFi ecosystem involve custodial solutions or bridge systems requiring users to trust a third party with their Bitcoin.
Most of the current wrapped Bitcoin solutions have inherent vulnerabilities including:
Custodian Failures: When users transfer their Bitcoin to custodial services, they relinquish control over their assets, creating a single point of failure. Users may lose their assets if the custodian is compromised or insolvent.
Bridge Hacks: Bridging systems often involve pooling assets, which can become attractive targets for hackers. Multiple high-profile bridge hacks have resulted in substantial losses, undermining trust in these systems.
iBTC provides a way for Bitcoin users to safely put their Bitcoin to work in the DeFi ecosystem.
With iBTC, Bitcoin remains securely locked in a contract, while users can freely use the equivalent iBTC token in various DeFi protocols.
