We’ve got some exciting news for you all!
xBTC by Tokensoft, a custodial representation of Bitcoin on Stacks has entered its next phase. OkCoin has integrated full support for xBTC, creating an xBTC/BTC market on their exchange as well as enabling deposits and withdrawals of SIP10 xBTC. This means that xBTC can freely flow in and out of Stacks and that you can get it easily on OkCoin.
At Arkadiko, we have always been very excited to support the Bitcoin asset. Up until now, there was not good way for us to do this, but now that xBTC has a strong onramp and can be acquired by anyone, we are convinced that providing full support for xBTC on Stacks DeFi is the way to go.
Those of you who have been following governance closely already know that a vote is running to support xBTC in general. The first phase of the plan will be to create a xBTC/STX Swap pool with DIKO incentives. This step is crucial to create initial liquidity for xBTC on Stacks. A second pool xBTC/USDA should go up soon after once xBTC/STX is sufficiently capitalized. Once we have strong liquidity in both pools, we can add xBTC as a collateral asset in Vaults to borrow against. This means users will be able to mint USDA against xBTC !
While xBTC arrival on Stacks is great, it is certainly not the end of the road for Bitcoin DeFi. We hope that the future brings truly non-custodial and trustless Bitcoin through atomic swaps or another type of technology. Despite the limitations, custodial or wrapped BTC has been used successfully on EVM-compatible chains. There is over 200k wBTC in existence on Ethereum. We see xBTC as the necessary step to boost an ecosystem that can produce an even better form of Bitcoin collateral.
xBTC will be a big step for Arkadiko as it allows the minting of the USDA stablecoin with everyone’s favourite asset, Bitcoin. This will undoubtedly increase USDA supply and transform Arkadiko from a single-asset to a multi-asset protocol.
Expect the first liquidity pool to be online on Wednesday the 22nd !
EDIT: Due to ongoing high traffic on Stacks we have decided to postpone the launch of the new LP to next week. Check up on discord for an announcement detailing the final date further.
Onto the next milestone.. In the meantime, get that xBTC !