Opening the Future of Blockchain! Rediscovering DeFi with BTCFi and Bifrost [Builder’s Vibe — Part.2]
Discover the dynamic world of builders making their mark across various industries via Web3 technology! 🧑🏻💻👩🏻💻 In the second part of All That Node’s Builder’s Vibe, we met Bifrost Team, receiving global attention. Join us as we explore BTCFi, their groundbreaking DeFi service, through an insightful interview with Do Hyun Pak, their innovative DeFi service.
BTCFi is a collection of financial services utilizing Bifrost Network’s multi-chain infrastructure, which offers DeFi services using Bitcoin, allowing users to earn returns with Bitcoin and other Bitcoin-based virtual assets issued across various blockchain networks. By using BTC as collateral, users can leverage the liquidity of tokens such as WBTC, BTCB, and sBTC through cross-chain technology, enabling asset sourcing from other networks and liquidity movement across multiple chains for use in DeFi protocols.
Let’s deep dive into BTCFi through our interview 🏄♂️
1. Introducing the Bifrost Team!
Q. Could you briefly introduce yourself, your organization, and your role within the company?
A. (Do Hyun) : Hello, I’m Do Hyun Pak, CEO of Bifrost. I lead the organization to estabilish and implement the company’s vision and stategy. I unite the team, handle external communication, and maintain close relationships with investors to achieve sustainable growth. This year, in 2024, Bifrost is focusing on increasing the diverse users of native Bitcoin by launching the BTCFi project.
Q. Could you give us a brief introduction to the Bifrost team and its mission?
A. (Do Hyun) : The Bifrost team uses cross-chain technology to connect various blockchain networks, maximizing the interoperability of blockchain networks to build a more efficient and secure digital economic ecosystem.
2. Realizing True Interoperability: The Motivation and Distinction of BTCFi
Q. What inspired the creation of BTCFi? What market needs did you identify?
A. (Do Hyun) : We conceived the BTCFi project to maximize Bitcoin’s potential. We detected an increasing market demand for safer and more efficient DeFi services utilizing native Bitcoin. Hence, the Bifrost team focused on enabling decentralized and secure transactions between Bitcoin and other networks, leading to the development of BTCFi.
Furthermore, Bifrost aims to enhance the overall Bitcoin ecosystem and increase its value by providing a platform capable of issuing Bitcoin-based stablecoin BtcUSD. This stablecoin can be used in various financial services, promoting broader applications for Bitcoin as an asset.
Q. How is BTCFi constructed differently from other DeFi Services?
A. (Do Hyun) : BTCFi has two major distinguishing features:
- Secure and Decentralized Bitcoin Transactions: BTCFi ensures high security by connecting with the Bitcoin network and processing transactions in a decentralized manner. Utilizing Bifrost’s Cross-Chain Communication Protocol (CCCP) and Bitcoin Relaying Protocol (BRP), BTCFi facilitates secure and decentralized transactions between Bitcoin and other networks. BRP, a new protocol introduced in the Bifrost Network, enables interoperability with the Bitcoin network, managed by decentralized relayers ensuring secure and decentralized transactions. Additionally, a bi-directional bridge guarantees free asset mobility, providing a differentiated DeFi service with high security and efficiency.
- DeFi Services Utilizing Bitcoin Itself: BTCFi focuses on DeFi services using Bitcoin, connecting Bitcoin and other Bitcoin-based tokens issued on various blockchain platforms with the Bifrost Network. Users can deposit Bitcoin or Bitcoin-based tokens into BTCFi, issuing the stablecoin BtcUSD, which is pegged 1:1 with the US dollar, and use it as collateral in DeFi services to generate additional revenue.
3. Choosing Bitcoin as the Building Chain
Q. Why did you choose to build on Bitcoin among various chains?
A. (Do Hyun) : There are two main reasons: security and market trends.
Firstly, the high level of security that Bitcoin offers was a major factor. Bitcoin is the most stable and reliable cryptocurrency, with a highly secure network. This enables us to provide safe financial services and enhance accessibility to DeFi services through Bitcoin’s broad user base.
Secondly, the changing market trends influenced our decision. While the DeFi market has primarily focused on Ethereum, projects utilizing the Bitcoin network have recently emerged, indicating a shift in the market environment. Particularly with the approval of Bitcoin spot ETFs in the US, Bitcoin’s asset value has been officially recognized, prompting us to build a Bitcoin-based DeFi ecosystem to seek new growth opportunities. Bifrost aims to expand Bitcoin-based DeFi services in line with these changes, exploring new growth prospects.
4. BTCFi’s Roadmap and Milestones
Q. Could you share BTCFi’s roadmap and milestones?
A. (Do Hyun) : BTCFi plans to support native Bitcoin in the third quarter of this year, followed by the addition of various DeFi services and the establishment of a one-click automation system for user convenience. Key milestones include expanding the user base, broadening partnerships, and developing new features. Through these strategic steps, BTCFi aims to continuously improve user experience and foster growth..
5. Target Market and Clients Type of BTCFi
Q. What is BTCFi’s target market and main target clients type?
A. (Do Hyun) : BTCFi primarily targets long-term investors in digital assets, including Bitcoin. These individuals manage a variety of virtual assets through DeFi services. As Bitcoin’s value rises and long-term holding increases, we aim to meet these customers’ needs by providing various financial products that maximize the utilization of digital assets and support the maximization of their investment returns and secure asset management.
6. Choosing a Node Provider and Utilizing All That Node
Q. What are the key factors when choosing a node provider service?
A. (Do Hyun) : Stability, security, and performance are crucial. All That Node processes about 1 billion requests monthly across over 24 networks globally, providing excellent services in these three aspects. Bifrost currently manages network nodes efficiently through All That Node. The stable node operation allows the development team to focus on core tasks, significantly contributing to maintaining overall network stability. Additionally, it helps mitigate geographical risks by addressing issues arising from differences in regional communication environments.
Q. What value does the partnership with All That Node bring to the Bifrost team?
A. (Do Hyun) : Our partnership with All That Node has secured a stable node operation environment for Bifrost, greatly enhancing development and operational efficiency. Through this partnership, we aim to provide more stable and reliable DeFi services to users.
We will continue to lead DeFi service innovation through ongoing collaboration, striving to offer the best user-centric experience. Through the synergy between Bifrost and All That Node, we aim to drive the overall development of the DeFi ecosystem.
💡 As a partner of All That Node, the Bifrost team provides stable services through All That Node endpoints. Besides BTCFi, Bifrost operates various projects such as BiFi, BiFi X, ChainRunners, and Pockie, continuously promoting the expansion of cross-chain technology. All That Node will continue to introduce new updates through these partner showcases. We appreciate your continued interest and support.
- Interviewee: Do Hyun Pak (CEO)
- Team: Bifrost (https://bifrostnetwork.com/)
- BTCFi(Website): https://www.btcfi.one/en
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Interviewed & Written by
Yunseon Na, Growth Manager, DSRV All That Node Team (Twitter @yunseon_na)
Designed by
Heeyoung Moon, Brand Designer, DSRV Brand Marketing Team
