Interlay

Background:

Interlay is envisioned as a bridge connecting the pioneering Bitcoin ecosystem with the dynamic world of multi-chain platforms. Aiming to facilitate Bitcoin’s mass adoption and reduce the dependency on centralized systems, Interlay offers a myriad of decentralized financial instruments. Combining strengths, Interlay’s team and Apoddo’s experts worked in unison to achieve a groundbreaking goal: to bring trustless and decentralized BTC integration to other blockchains.

1. Embracing the Bitcoin Bridge Concept:

Together, we forged a path to create the iBTC token, bridging the gap between Bitcoin and other blockchains.

2. Vault Implementation:

• Collateral Asset Whitelisting: The teams established a rigorous governance voting mechanism, ensuring only assets passing community scrutiny were whitelisted.
• Risk Assessment: Collaborating with community and external risk teams, evaluating potential collateral assets, considering their market behavior and liquidity
• Safety Thresholds: To safeguard users’ assets, the teams set up collateral thresholds, ensuring the system’s economic stability

3. Rolling Out BTC Relay:

The joint force implemented the BTC Relay as a dedicated light client, ensuring the system’s transparency and trustworthiness. This relay was crucial for:

– Verifying Bitcoin block headers.
– Proof-checking transactions.
– Handling blockchain forks, ensuring system resilience.

4. Strengthening Bridge Security:

• Open Participation: The system is designed to be permissionless, letting anyone register as a Vault operator, fostering decentralization.
• Non-Interactive Minting: To prevent potential censorship, it is ensured that the minting process is autonomous, eliminating any third-party intervention.
• Over-collateralization: Recognizing the importance of trust, they imposed strict collateral requirements on Vault operators.

5. Ensuring Decentralization and Economic Trustlessness:

• Decentralized Framework: Combined vision empowered anyone to join the ecosystem, ensuring a robust and decentralized network
• Economic Safeguards: By integrating cryptographic proofs and facilitating immediate liquidations, they guaranteed users could always redeem or be reimbursed.