tBitcoin, a new synthetic Bitcoin asset, is joining the Polkadot parachain, the SORA network.
tBitcoin will join other major cryptocurrencies like Ethereum (ETH), Dai (DAI), and Polkadot (DOT) on the network as collateral. This move is an effort by the network in maintaining the SORA (XOR) token price peg.
tBitcoin is the first synthetic asset backed by the Tau Protocol. This means it’s backed by 12% of the global Bitcoin mining hash rate. Specifically, by the mining operations Atlas Mining, BTC.TOP, Easy2Mine, Genesis Mining, and Hengjia Group.
The creator of TAU protocol, Tim Swanson, says:
“Mechanisms behind generating and stabilizing synthetic assets are an on-going area of research ripe for practical uses in the expanding world of DeFi. The first implementation of the Tau Protocol applies some of the lessons learned from the previous generation of rebasing techniques by including real-world collateral in the form of BTCST, which creates a credible Schelling point.”
The protocol attempts to bridge the gap between bitcoin and DeFi. Makoto Takemiya, CEO of SORA, says that Bitcoin is limited by “ antiquated technology.”
As a result, DeFi has turned to synthetic assets and decentralized networks.
Understandably, the CEO of the network would back his own product. Especially when SORA’s goal is to become “a decentralized world economic system.”
tBitcoin Joins Upcoming Decentralized Network
tBitcoin is not only a price peg for the network but is also going to be a listed coin on the unfinished decentralized exchange, Polkaswap.
This is the latest in a boom of decentralized exchanges. Multiple exchanges have launched over the last year as interest in DEX has soared. This has also brought more investment.
Data from DeFi Pulse shows that the Total Value Locked (TVL) in DeFi currently sits at $42.98 billion.
The exchange is still under construction and will likely launch later this year. It aims to connect the rest of the crypto ecosystem to Polkadot.