We've partnered with Arcade.xyz to offer a unique opportunity for users to utilize their Bitcoin holdings in a non-custodial and decentralized way. By integrating DLC.Link's Bitcoin-backed NFT technology with Arcade's DeFi lending platform, users can now lock their Bitcoin in on-chain escrow and borrow against it.
The process begins with users locking their Bitcoin in a DLC on the Xverse Bitcoin wallet, which acts as an on-chain escrow. Once the Bitcoin is secured in escrow, DLC.Link mints a Bitcoin-backed NFT in the user's Ethereum wallet. This NFT represents the locked Bitcoin and allows users to interact with Ethereum-based DeFi applications.
With the Bitcoin-backed NFT in their Ethereum wallet, users can list it on the Arcade.xyz platform to borrow against it. They can choose from a range of assets, including ETH, USDC, DAI, and other cryptocurrencies. After repaying the loan, users can burn the NFT and reclaim their locked Bitcoin.
In this video demo, Robert from DLC.Link walks through the process of using native Bitcoin as collateral for a stablecoin loan using Arcade.xyz and DLC.Link's NFT broker site. He demonstrates creating a vault on Ethereum using MetaMask, locking the Bitcoin, minting the NFT, and listing the NFT on Arcade.xyz to borrow against it. The demo also explains closing the vault and getting the Bitcoin back, as well as transferring or liquidating a loan on Arcade.
The collaboration between DLC.Link and Arcade.xyz offers several benefits to users:
By bridging the gap between Bitcoin and Ethereum, the partnership between DLC.Link and Arcade.xyz has the potential to:
The partnership between DLC.Link and Arcade.xyz has successfully integrated a Bitcoin-backed NFT solution with a DeFi lending platform, allowing users to access loans in a non-custodial and decentralized manner. The integration demonstrates the potential of connecting Bitcoin and Ethereum, as shown in the video demo walkthrough. With the public beta release upcoming, the potential impact on the DeFi ecosystem is significant, with the potential to increase adoption, enhance liquidity, and drive innovation.
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