Following the successful launch of pBTC on the Ethereum network, today we are releasing our interoperability solution for EOS, making it the first Bitcoin to EOS bridge industry-wide.
pBTC is now EOS-compatible, so Bitcoin holders can use their BTC throughout the entire EOS ecosystem, including all DApps.
This unique token is pegged 1:1 with Bitcoin, so users simply mint their own pBTC and can begin using it with EOS DeFi platforms straight away. This “peg-in” system allows you to deposit your BTC for safekeeping, without having to sell or trade your Bitcoin. You can then “peg-out” or redeem your BTC any time you like, withdrawing the originally deposited amount.
The launch of pBTC on EOS was covered by Cointelegraph. Our founder Thomas was quoted as saying, pTokens interoperability “is vital for the movement, as liquidity is the catalyst which will help DeFi reach its true potential.”
Read about the pBTC on EOS launch in Cointelegraph.
How this changes the game
EOS is a leading blockchain network with its native cryptocurrency in the top ten by market cap. The development team behind EOS has promised to completely remove transaction fees and achieve scalability that can handle millions of transactions per second!
This focus on scalability has helped EOS weather the industry’s recent market downturns. The blockchain is “not as sensitive to a rise in simultaneous transactions due to its architectural specifics”. Its current design can handle a bandwidth capacity of 250 transactions per second, which can “potentially be scaled to 4,000”.
EOS has a fast-growing DeFi ecosystem and is on course to achieve their goal of hosting commercial-scale DApps.
However, according to DeFi Prime, EOS is still playing catch up to Ethereum’s more evolved DeFi ecosystem. It lists 22 EOS projects, compared to Ethereum’s 209.
And while EOS holders and developers are benefitting from the ecosystem’s rapid development, it still locks out non-EOS users from participating. As a result, liquidity is siloed and there is a lost opportunity for experimentation and community growth.
Decentralized applications today need to interoperate and complement each other like lego blocks so that the entire DeFi industry can scale. This is what pTokens achieve — an intuitive and scalable level of interoperability, enabling liquidity to flow across different blockchains. This cross-chain liquidity will be the catalyst that drives DeFi adoption.
Merging the EOS DeFi ecosystem with Bitcoin’s unparalleled liquidity could create a powerhouse of decentralized finance.
What do DeFi DApps get out of it?
pTokens help DApps become composable by breaking down their own blockchain’s walls. This maximises their usability and accessibility as they welcome entirely new blockchain communities to explore and interact with them, and “unchain” the liquidity of cryptocurrencies and tokens they bring.
Decentralized exchanges (DEX) are typically required to integrate entirely new blockchain systems in order to provide cross-chain conversions. pTokens connect the centralized and decentralized worlds, making the switch between different blockchain assets smooth for users and creating new opportunities for market makers.
Soon all kinds of digital assets will move seamlessly from one blockchain to another in the form of pTokens. ETH holders will also be able to explore the EOS blockchain, and vice versa. The pTokens system offers an extra feature which enables pBTC to be moved between the Ethereum and EOS blockchains, making the connection between these DeFi ecosystems even stronger.
It’s this cross-chain composability that will enable DeFi to become a strong, diverse and competitive ecosystem that rivals traditional finance.
How is it different to pBTC on Ethereum?
Because of how each blockchain infrastructure works, Ethereum and EOS follow different token specifications.
The way tokens are handled on Ethereum is via smart contracts. Similarly, tokens on EOS are based on the eosio.token smart contract. These EOS smart contracts allow you to create your own token by providing maximum supply, issue tokens to an account and transfer tokens between accounts.
The EOS token itself is issued in the form of a token. You can check out how EOS tokens are made here.
Mint your own pBTC using the custom DApp — dapp.ptokens.io
Backed by bitcoin
By making Bitcoin EOS-compatible, we’re also able to introduce Bitcoin as a collateral position for stablecoins like EOSDT.
EOSDT by Equilibrium is a decentralized, EOS-backed stablecoin pegged to the US dollar. This leading DeFi project is integrating the pTokens solution with EOSDT, which already has approximately $ 10 Million locked in its collateral value (the most of all EOS-based DApps).
With current market falls leading to unprecedented events — such as the MakerDAO debt auction — new solutions are needed to guarantee the stable collateralization of digital assets.
EOSDT will soon upgrade their single collateral token model to a multi-collateral version additionally backed by pBTC. This brings not only more liquidity, but makes their collateral position far more stable, as it is backed by both EOS and BTC.
Alex Melikhov, CEO and founder of Equilibrium, said the team is “excited about the pBTC integration because it creates more use cases for our users, who can now get the most out of their crypto portfolio. DeFi has been most waiting for a trustworthy way to collateralise Bitcoin and now it has become a reality.”
Equilibrium’s main goal is to provide a seamless user experience. Their deep integration of pTokens’ solution into their web interface means that providing Bitcoin as collateral is as easy as sending just two blockchain transactions — one is to deposit Bitcoin and another to redeem EOSDT.