Polygon (MATIC) brings in Bitcoin atomic swaps through Portal tie-up
Polygon (MATIC) would now be able to offer fast, secure, and reliable atomic swaps between Bitcoin and other assets by a strategic partnership with Portal, a self-hosted cross-chain Layer-2 DEX built on the Bitcoin network.
This would help the Portal platform to move assets seamlessly across multiple networks across the DeFi ecosystem at the lowest possible rates. A lot of platforms and developers have been onboarding the Polygon ecosystem due to the promise of low gas fees and high speed and so far, the network has been able to meet the expectations. This partnership is expected to give a huge boost to the Bitcoin and Polygon networks as it would mean that the users would finally be able to swap assets across different chains in a smooth manner with low fees as well.
Portal executive chairman Dr. Chandra Duggirala commented, “Given that Portal is a DeFi layer on Bitcoin, we are excited to partner with Polygon to enable WBTC/BTC and POS-WBTC to BTC swaps. We believe that having liquid markets and enabling price discovery will appropriately price wrapped Bitcoin based on risk and enables increased usability for Bitcoin.”
Portal will facilitate WBTC/BTC and POS-WBTC to BTC swaps on its decentralized exchange. Polygon will run a facilitation node on Portal DEX to provide ongoing liquidity for atomic swaps between Bitcoin and POS-WBTC, WBTC, and other assets. Its Layer 2 and Layer 3 technology simplifies building censorship-resistant communications, media, and one-click execution of cross-chain swaps on top of the Bitcoin blockchain. It facilitates the private, off-chain execution of “smart contracts” for asset issuance, swaps, staking, liquidity, derivatives, and more, all peer-to-peer, without third-party custody or control.
With the regulators around the world coming down hard on the centralized exchanges, it is expected that the decentralized exchanges would benefit in the long run but they do have the challenge of cross-chain compatibility and interoperability that they would need to overcome. Various crypto businesses and exchanges around the world have been trying out various approaches to solving this problem but there is still no one size fits all solution as yet while efforts continue to be taken to bring together compatible chains and ensure that asset transfers happen between them in s secure manner. This is what Portal has also managed to achieve, by the use of atomic swaps, between the Bitcoin and Polygon chains.
