iBTC Network Documentation
  • Overview
  • Protocol
    • What is iBTC?
    • How iBTC Works
    • Attestor Network
    • Merchant Network
  • Security
    • Core Security Features
    • Proof of Reserves
  • Yield & Rewards
    • Yield Opportunities
    • iBTC Rewards Program
  • Usage
    • Getting iBTC
    • Redeeming iBTC
  • Ecosystem
    • Supported Chains
    • Comparisons
    • Contract Addresses
  • Community & Support
    • FAQs
    • Contact Us
    • Glossary
  • Team
Powered by GitBook
On this page
  • Merchant Responsibilities
  • Benefits of the Merchant Model
  • Becoming a Merchant
  1. Protocol

Merchant Network

Powering Bitcoin Liquidity

Merchants are the liquidity engines of iBTC, enabling institutions to mint and redeem iBTC without bridges or custodians. These KYB-verified entities—trading firms, market makers, and asset managers—facilitate secure BTCFi while ensuring compliance and deep market liquidity.

Merchant Responsibilities

  • Minting iBTC: Lock BTC in 2-of-2 multisig vaults on Layer 1, triggering iBTC minting on target chains.

  • Redeeming iBTC: Burn iBTC and co-sign PSBTs with attestors to release BTC.

  • Providing Liquidity: Integrate iBTC into DeFi platforms, OTC desks, and trading venues (e.g., Curve, Uniswap).

  • Ensuring Compliance: Undergo KYB verification via Fractl to meet regulatory standards.

Benefits of the Merchant Model

  • Bridgeless: BTC stays on Layer 1, avoiding bridge risks (e.g., Wormhole’s $326M hack).

  • Fast Transactions: Minting/redemption in 30-60 minutes vs. 3-12 hours for traditional wrapped BTC.

  • Institutional Access: Deep liquidity for DeFi and trading, supported by LPs like Bullish.

  • Compliance: KYB ensures regulatory adherence, appealing to institutions.

Becoming a Merchant

  1. KYB Verification: Pass Fractl’s compliance checks to join the network.

  2. Secure BTC: Deposit BTC into a 2-of-2 multisig vault with attestors.

  3. Mint/Redeem iBTC: Facilitate iBTC creation and redemption on supported chains.

  4. Provide Liquidity: Deploy iBTC across DeFi and institutional markets. Eligible Entities: Trading firms, custodians (e.g., Ledger, Fordefi), market makers, asset managers. Start here.

PreviousAttestor NetworkNextCore Security Features

Last updated 18 days ago