Sushi, a decentralized finance (DeFi) platform, has joined forces with ZetaChain, an interoperability platform, to explore the potential of a native Bitcoin exchange across 30 different blockchain networks for users. The collaboration aims to deploy a decentralized exchange (DEX) on ZetaChain, enabling BTC transactions without the necessity of spanning multiple blockchains, offering a "native, decentralized, and permissionless approach," as described by the team.
This integration encompasses Sushi's v2 and v3 automated market makers alongside Sushi's cross-chain exchange, SushiXSwap, within the ZetaChain infrastructure. Ankur Nandwani, a core contributor to ZetaChain, highlighted the significance of this partnership in bringing Bitcoin's extensive user base into the DeFi domain in a native fashion. Nandwani addressed doubts about bridging BTC without wrapping the asset on another chain, citing precedents such as THORChain and Bitcoin sidechains as early examples accomplishing native Bitcoin transactions with other chain assets.
According to Nandwani, ZetaChain's approach empowers the development of Bitcoin-interoperable decentralized applications (DApps) capable of settling contracts and transactions natively. However, he emphasized the necessity for trust assumptions and the decentralization of networks involved in conducting cross-chain transactions.
Reportedly, ZetaChain has demonstrated the technology at the testnet level and intends to showcase its utility in partnership with SushiSwap and other DeFi protocols upon the launch of its mainnet. Jared Gray, Sushi's chef, hailed this integration as a significant leap for DeFi, highlighting the potential of natively exchanging Bitcoin as a transformative development for the industry, predicting increased real-world use cases and enhanced connectivity.
The integration between Sushi and ZetaChain will occur in two phases. Initially, Sushi will introduce the DEX on ZetaChain's testnet to support basic asset exchange and liquidity provision, including beta testing and incentivized application testing. Subsequently, as one of ZetaChain's launch partners, Sushi anticipates full functionality for Bitcoin interoperability post the deployment of ZetaChain's mainnet. Nandwani provided detailed technical insights into the functionality that will enable native BTC cross-chain swaps through the utilization of ZetaChain's network of validators spanning various connected chains.
