Etherlink Bridges Bitcoin and Stablecoins to Ignite a Tezos-Centric DeFi Revolution

In the past year or two, Etherlink (an EVM -compatible L2) have seen a large growth spurt about the Tezos ecosystem; Thanks to a large part on the legacy of the security and management framework of the latter in addition to various Ethereum-like development tools.

Ethherlink recently announced a series of collaborations to stimulate Defi activities on Tezos, in which one of the most important collaboration with Bitcoin Capital Markets supplier Lombard Finance. To work out, the company has deployed its flagship offer (a liquid expansion token called ‘$ lbtc’) on the network, allowing holders to maintain their Bitcoin exposure and at the same time earn rewards through BTC strike Babylon protocol.

The setup has already won a huge grip in many networks, because almost $ 2 billion LBTC has entered a circulation in Ethereum, SUI, Base, BNB chain and more. In addition, 70% of this offer was actively used for Defi use (on platforms such as Aave and Morpho), making LBTC the primary Bitcoin assets on TEZOS.

In a recent interview, Anthony Hayot, head of Defi Adoption for Nomadic Labs, noticed that LBTC stood out him and his team because of his ‘ideal’ characteristics (such as liquidity, ease of use, etc.) with the Tezos Foundation executive director Jean-Frédéric Echoënde

“The TEZOS ECO system has always prioritized in innovation and bringing Bitcoin’s liquid built -in bitcoin to Etherlink reflects that fundamental vision. This integration will offer BTC holders new and exciting opportunities in Defi.”

Supercharging stablecoin liquidity on Etherlink

Very on the heels of his Bitcoin -bridging activities, Ethherlink recently scored a big win by working together with Curve Finance, one of the world’s most popular Stablecoin exchanges. Long a staple from the Ethereum Defi landscape, Curve offers an automated market maker aimed at stable value assets (such as USDT, USDC or packaged BTC), so that transactions with minimal slipper and reimbursements can often become less than 0.1%.

In practical terms, this means that TEZOS users can tap liquidity pools that are comparable to those of Ethereum, but with a much higher transaction supply and negligible costs. Not only that, the integration of Curve, is also intertwined with the Etherlink stimulation programs, where the protocol is set to participate in Apple Farm Season 2, a loyalty and remuneration initiative with more than $ 3 million in incentives to increase user involvement.

LBTC is planned to also be included in the initiative, allowing Bitcoin holders to seamlessly achieve extra yields on Etherlink.

Finally, it mentions that to add institutional rails/support for real assets (RWAS), Ethherlink collaborated with Hex Trust (a regulated digital-asset stakeholder), the addition of custody for Tokenized Uranium XU3O8. As a result, settings can possess the precious metal via a recognized custodian while still having access to Ethherlink’s on-chain rails, something that has traditionally been impossible.

A convergence of ecosystems that are strung together by the vision of Ethherlink

The aforementioned partnerships are not insulated events, but reflect Ethherlink’s wider strategy to offer its customers the best of the world, ie the safe, energy-efficient backbone of Tezos, and the flexibility/developer-friendly environment of Ethereum’s extensive tools.

In fact, developers who may be the idea of learning the Native Smart Contract languages from Tezos (such as Michelson) can implement on materiality-based contracts on Etherlink using well-known tools such as Metamask and Hardhat.

This allows Etherlink to “speak the same language” as Ethereum and all the learning curves considerably shorten, something that has proven a powerful draw. Only a few months ago, prominent Dex -Aggreator OKU launched The UNISWAP V3-like trading platform on the network.

Around the same time, CryptoDy Custody Platform Midas entered Return-wearing tokenized assets (MBasis, MTBILL and others) in the emerging Defi market of Etherlink, which further diversify users’ investment options. Finally, at the beginning of the year, the project was integrated with Jumper Exchange, a bridge that connects more than 50 different block chains and L2S (from arbitrum to base).

The impact of this flurry has already become clear as the total value of Ethherlink (TVL) has recently reached a peak of around $ 47.7 million, with around $ 88 million in assets that flow through its contracts.

The road that lies in front of us is paved with digital gold

All this momentum seems to be feeding in a clear vision, one that converges applications of multiple networks under the secure umbrella of Tezos. By anchoring an Ethereum-Grade Defi experience to the reliability of Tezos, Etherlink states to give the ecosystem a much needed boost in attracting liquidity and talent, especially in view of the permissionless, non-right, non-custodial design (where everyone can run a junction or the commitments of the Rollup). Interesting times to say the least!