Decentralized exchange Sushi has partnered with interoperability platform ZetaChain to explore native Bitcoin (BTC) swaps across 30 different blockchain networks. This integration will allow users to trade BTC without the need for wrapping across multiple blockchains, in a decentralized and permissionless manner. ZetaChain’s core contributor, Ankur Nandwani, believes that this partnership can bring Bitcoin’s large user base to the decentralized finance (DeFi) sector in a native way. The integration will include Sushi’s automated market makers and cross-chain swap, SushiXSwap. ZetaChain has already proven the technology at a testnet level and plans to launch its mainnet through partnerships with SushiSwap and other DeFi protocols. Sushi’s head chef, Jared Grey, sees this integration as a significant advancement for DeFi, describing the capability to swap Bitcoin natively as a “game-changer” for the industry. The integration will take place in two phases, with the first phase supporting basic asset swaps and liquidity provision on ZetaChain’s testnet. The second phase will involve the full functionality of Bitcoin interoperability. Technical details behind the native BTC cross-chain swaps involve deploying a cross-chain swap contract on ZetaChain’s Ethereum Virtual Machine, which can be called from any connected chain, including Bitcoin. The contract is triggered by a user sending a native token transfer transaction on Bitcoin with a special memo to a TSS address. Once enough votes are cast by ZetaChain’s validators, an inbound cross-chain transaction is created, allowing for the swapping of BTC for another token on ZetaChain. Finally, the swapped token can be withdrawn to the destination chain. This partnership between Sushi and ZetaChain aims to enhance connectivity and interoperability in the DeFi space.
