Today we are pleased to announce the release of Kava’s new plugin integrating ERC-20 assets into the Interledger protocol. Interledger nodes can now send and receive ERC-20 tokens, enabling trust-minimized payments in assets like DAI, MKR, and REP on Interledger.
In Interledger, peers can choose how much credit they’re willing to extend, and how often they settle. This can scale from large credit limits to counterparty risk of merely a few cents.
With the vast number of ERC-20 tokens, the completion of this work considerably expands the asset support of the Interledger network. With BTC, ETH, and XRP already supported, this new addition of ERC-20 tokens enables Interledger to connect more assets compared to Ethereum-based DEXs or the Bitcoin Lightning Network alone.
“Dai integration with Interledger creates a massive opportunity for people to benefit from the transparency, security and efficiency of a decentralized stablecoin — regardless of blockchain or currency,” said Rune Christensen, CEO and cofounder of MakerDAO. “Working across chain with Interledger gets us one step closer to unlocking access to a decentralized and unbiased financial system for people and organizations around the world.”
“The massive potential for Interledger is to unify payments methods the same way the internet has unified communication,” said Stefan Thomas, Founder and CEO of Coil, co-creator of the Interledger Protocol and former CTO of Ripple. “Companies like Coil use Interledger as an alternative to hundreds of individual bespoke integrations to different payment methods. This significant development by Kava paves the way for a wave of blockchain-based applications to interoperate with more traditional payment methods and emerging markets via the Interledger network.”
Non-custodial DAI to BTC trading
As the first implementation of this work, we have updated Kava’s Switch desktop app to natively support DAI trades. This enables Switch users to make lightning fast, non-custodial trades between DAI, BTC, ETH, and XRP using streaming micropayments on Interledger.
Streaming micropayments work by moving little bits of value piece-by-piece until an entire payment or trade is complete. This enables non-custodial trading, since Switch prefunds only 10¢ at time, minimizing counterparty risk. If the intermediary connector or liquidity provider cheats, Switch halts the exchange!
Download the Switch beta for Mac, Windows, and Linux, which supports both testnet and mainnet, with trades up to $20. Follow our Getting Started guide to get up to speed and configure Switch on testnet in just a few minutes.
While we hope it’s all smooth streaming, as this is beta-quality software, issues may arise. If you encounter any bugs or unexpected behavior, we’d encourage you to submit an issue!
And for the latest updates from Kava, follow us on Twitter ~ we’d love to hear about your experience with Switch!