Bitcoin Project Citrea Deploys Bridge to Tackle Collateral Bottleneck of Using BTC in DeFi

A challenge aiming to broaden Bitcoin’s utility is tackling the collateral necessities of bridging the blockchain to programmable layer 2s.

Rollup challenge Citrea deployed its Clementine Bridge on the Bitcoin testnet. The bridge makes use of the BitVM2 programming language to broaden the supply for decentralized finance (DeFi) on Bitcoin, through the use of it to confirm layer 2s and sidechains which are absolutely programable in the way in which Bitcoin is not.

“A safe bridge between Bitcoin and a secondary layer has all the time been a bottleneck for utilizing BTC in a programmable setting,” Citrea said on Monday.

Clementine is designed to resolve this by offering a trust-minimized strategy to bridge bitcoin (BTC) to be used in DeFi environments.

The BitVM household of computing paradigms, which could allow Ethereum-style smart contracts on Bitcoin, typically lies on the coronary heart of makes an attempt by builders to make the community extra programmable and thus enable BTC to energy DeFi actions.

Nevertheless, BitVM is hampered by the requirement to deposit BTC as a safety mechanism every time a computation is initiated.

“We reuse the operator’s collateral, permitting them to facilitate a number of peg-outs with a single collateral,” Citrea co-creator Ekrem Bal informed CoinDesk in a Telegram message.

Peg-outs check with the method of shifting belongings from a sidechain again to Bitcoin, triggering the discharge of the locked BTC collateral on the principle chain.

Citrea deployed Clementine on the original BitVM design last September. Citrea’s newest bridge makes use of BitVM2, an improve that boasts enhancements comparable to permitting any participant to problem suspicious transactions, not only a fastened set of operators.