Harmony Protocol to Launch Trustless Bi-Directional Bitcoin Network to Harmony Bridge, Allowing Bitcoin Holders to Participate in $1 Billion DeFi Ecosystem
We’re excited to announce the guarded soft launch of the non-custodial, fully trustless Harmony BTC Bridge.
Staying true to our vision of high interoperability with other ecosystems, we created the Harmony BTC Bridge so holders of Bitcoin will be able to bridge their BTC to Harmony and participate in high yielding DeFi products, putting their BTC to productive use.
TLDR;
- Harmony-BTC Bridge is live on Harmony Mainnet
- It is fully permissionless and decentralized
- We’re calling this a guarded soft launch, which means we’re watching it and being extra careful
- We’re partnering with Tranquil.Finance so users can bridge their Bitcoin and get 1BTC and use the Tranquil lending platform to earn incentives in ONE and TRANQ
What is it?
Based on the Interlay architecture, the Harmony BTC Bridge enables a 1:1 Bitcoin-backed asset, fully overcollateralized, interoperable, and censorship-resistant.
At the heart of the Interlay architecture is the Lock-Mint-BTC DeFi-Redeem lifecycle.
- Lock: Lock your ONE in a vault so that BTC can be bridged and minted at a 150% overcollaterization ratio.
- Mint: Get BTC at a 1:1 ratio
- BTC DeFi: Use 1BTC in DeFi protocols on Harmony
- Redeem: Redeem 1BTC for BTC by crossing the bridge back to the Bitcoin Network.
How is it Decentralized?
Unlike other wrapped BTC options, the Harmony BTC Bridge is trustless and fully decentralized.
- Secured by Insurance: Vaults lock collateral in ONE at a 150% collateralization ratio. This means you can have confidence that BTC will always be backed and will always be able to redeem your 1BTC for BTC.
- Open and Permissionless: Becoming a vault operator is open to anybody.
How to use it?
Bridging your BTC to Harmony can be done in a few simple steps.
Step 1: Connect Your Wallet
To begin, visit btc.harmony.one and connect your Metamask wallet. This wallet will receive your minted 1BTC, so make sure the Harmony network has been added. Click here for instructions on adding Harmony to Metamask.
Step 2: Specify the Amount You Wish to Bridge
With your wallet connected, and on the Issue screen, enter the amount of BTC you wish to bridge to Harmony. The bridge will automatically assign your transaction to a vault at random, but you may select one if you desire. Click the Continue button and sign the transaction to initiate the bridge — the fee is minimal on Harmony so expect to pay fractions of a penny.
Step 3: Send Your BTC to the Bridge
Next, the bridge will provide you with a BTC address and the amount of BTC for you to transfer. This step will take your BTC and place them in a vault so that 1BTC can be minted. Simply transfer your BTC to the address specified, in the amount specified, and wait for confirmation it was received.
Note that BTC confirmations can take upwards of 1-hour to complete.
Step 4: Receive Your 1BTC
Finally, with your BTC in an external vault, click the Execute Issue button and sign the transaction to receive your 1BTC. The 1BTC will be stored in the wallet used to connect to btc.harmony.one.
Please note that you may need to import the 1BTC token into your Metamask. To do this in Metamask, click on Assets while on the Harmony network, then click Import Token and enter the following contract address:
Contract Address: 0xdc54046c0451f9269FEe1840aeC808D36015697d
This should automatically populate the token symbol (1BTC) and token decimal (8).
$1 Million Incentive Campaign
In partnership with Tranquil.Finance, we will be providing a total of $1 million dollars as part of an incentive campaign, 50% in ONE, 50% in TRANQ, for users that utilize the Tranquil borrowing and lending platform with 1BTC.
Visit: https://www.tranquil.finance/ to get started.
About Tranquil Finance
Tranquil Finance is an algorithmic money market and liquid staking protocol on the Harmony ONE blockchain.
The money market allows users to supply and borrow assets, while receiving or paying interest in a completely permissionless and decentralized way. Borrowing and lending interest is set based on market demand, and loans are over-collateralized to ensure solvency.
This model was pioneered by the Compound protocol on Ethereum, but high gas fees have made the protocol untenable for most users. Building on Harmony ONE gives the Tranquil protocol fast and cheap transactions, democratizing access to everyone.
Another feature in Tranquil Finance is our liquid staking token, stONE, which allows the user to stake ONE for rewards while also being able to use it in Harmony’s DeFi ecosystem, such as using it as collateral on Tranquil Lending. We envision stONE becoming the currency of choice in Harmony, as ONE naturally loses value due to inflation if it is not staked.
Tranquil Finance’s core Comptroller and market contracts have been audited by CertiK.
About Harmony
Build on Harmony, Bridge to All Chains.
Harmony is an open and fast blockchain. Our mainnet runs Ethereum applications with 2-second transaction finality and 100 times lower fees.
Harmony is your open platform for assets, collectibles, identity, governance. Our secure bridges offer cross-chain asset transfers with Ethereum, Binance and 3 other chains.
We ❤️ Developers.
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