Institutions and the community consider Bitcoin the most trusted blockchain as it dominates 60–80% of the market cap. It is the most liquid of crypto currencies and is considered to be the best store of value. Bitcoin enjoys its supremacy because of the trustless design Nakamoto created. What was worth cents is now worth over $35000. Bitcoin will grow and infiltrate the retail users. It has an unparalleled trust in the community when compared to Alts. We all love Bitcoin but we must also admit its flaws, for what it is. if we want to keep moving forward with our loved community we must keep evolving.
Notably, the biggest issue with Bitcoin is that it is a legacy technology, which is very limited in terms of speed, scalability, smart contract programmability & Dapp support. Ethereum fills the gap here with its smart contracts & Dapp ecosystem. The Ethereum Virtual Machine is a generation 2 public blockchain and is faster & much more scalable than Bitcoin. However, since the inception of DeFi in early 2020, the network is congested with extremely high gas fees, and with DeFi usage flooding the ecosystem with a massive volume of transactions the Ethereum ecosystem is now in need also of a solution to solve this traffic jam.
The major issues that BTC holders will face when trying to participate in DeFi are:
- Counter Party Risk when sending their BTC to be exchanged
- Price Slippage on both CEFI and DEFI exchanges when making the exchange to ERC20
- Lack of Liquidity if the token they are exchanging for has low volumes
BTC Proxy is here to solve all the above issues. Keep reading to learn how…
Bitcoin Proxy (BTCpx): The Layer-2 Bitcoin Staking Protocol
BTC Proxy or the Proxy Protocol is a Layer-2 Interoperability of Bitcoin on Ethereum. BTC Proxy solves the issues within the DeFi network by providing the users with the following solutions.
- Low-Cost Layer-2 technology using Matic
- Permissionless Interface
- Licensed and Insured Custody reducing Counterparty Risks
- No Slippage
- No Lack of Liquidity
With BTC Proxy users participate in Ethereum DeFi using a slick permissionless interface. It allows Bitcoin holders to stake their coins into an insured custodian to mint an ERC20 token called BTCpx. This removes the counterparty risk, price slippage, and lack of liquidity when users are trying to exchange into ERC20 for usage in Dapps & DeFi applications.
To find out more staking on BTCpx with use for DeFi click Here