Avalanche recently added support for Bitcoin in its native cross-chain bridge. Since its launch in August of last year, the Avalanche Bridge has made it possible to send ERC20 assets quickly and securely between the Ethereum and Avalanche networks. In less than a year since its debut, the bridge has executed more than $50 billion in transfers and assisted in expanding the Avalanche DeFi ecosystem.
The inclusion of BTC enables users to use the recently released Core wallet to bridge native bitcoin and gain access to Avalanche’s DeFi ecosystem. With the help of this new Bitcoin bridging functionality, more than $500 billion in value currently locked up on the Bitcoin network will be made available for use within the Avalanche DeFi ecosystem.
This will broaden the range of services offered by Avalanche. Bitcoin holders can now access a wide range of earning and yield options on top DeFi protocols as long as they have Bitcoin in their portfolio.
The #Bitcoin Bridge has proven popular so far, with over 600 $BTC bridged in ~3 days
Why let your $BTC sit idly?
Bridge it to #Avalanche and start Yield Farming today!If you're not sure how to Bridge your #Bitcoin to #Avalanche we got you covered, read on below👇 pic.twitter.com/0sC6HqMBKE
— Trader Joe🔺 | We are Hiring! (@traderjoe_xyz) June 25, 2022
Bridging BTC to Avalanche
BTC pools on Trader Joe, a DeFi platform on Avalanche, offer lucrative APR. You can get as much as 62.2% APR. Rather than holding your BTC, you can put it to good use on the Avalanche-based DeFi platform. Trader Joe shared a breakdown of how you can get started using BTC to earn impressive returns on Trader Joe.
Before earning yields on Trader Joe, you have to bridge your BTC to Avalanche using the bridge. You’ll need the Core Wallet for this process. Core is a free, non-custodial browser extension that acts as a one-size-fits-all for Avalanche. After setting up your wallet, follow the following steps.
- Install Core on a desktop device or Chrome browser.
- Get your Bitcoin ready. You can purchase it from any reputable centralized exchange.
- Bridge your Bitcoin. Open the Core wallet and click on the “+) button at the bottom right. Next, click on “Bridge.” Afterwards, click “from Bitcoin,” then click, “add Bitcoin.”
- Copy your Core Bitcoin address. Paste the address for your intended transaction from your preferred centralized exchange.
- Enter the amount of Bitcoin you want to send.
- Confirm the transaction and send it. This process will take a while, so you have to be patient.
Enjoying Yields on Trader Joe
When you have your Bitcoin on Avalanche, you can start farming on Trader Joe. All you have to do is provide liquidity and deposit $AVAX and $BTC.b into the Farm. You’ll earn $JOE and $AVAX rewards. $BTC.b refers to the Bitcoin bridged to Avalanche. It became tradeable on the 22nd of June and is listed on many crypto exchanges. BTC.b can’t be directly purchased with fiat money, unlike many cryptocurrencies. You first have to buy Bitcoin with fiat and then transfer it to the exchanges that offer this coin. The bridge moves BTC from the Bitcoin network to the otherwise incompatible C-Chain in the form of BTC.b.
A Twitter thread by DeFi enthusiast Joe Intern best explains how to enjoy Bitcoin on Trader Joe. So, here’s how to participate in DeFi with your bridged BTC.
- Step 1. Connect your wallet to the Trader Joe website. Then, open your Core wallet and click on Avalanche C-chain. You’ll receive a prompt to connect.
2. Step 2. Click the Trade option at the top of the page to purchase BTC. Then, choose the asset you wish to exchange for BTC using the drop-down option on the Swap feature. This example will exchange $USDC for $BTC.
3. Step 3. Pool BTC AVAX: select the Pool tab at the top of the screen to view a list of potential pools. Then, type BTC.b to locate the BTC.b:AVAX pool and click it.
4. A 50:50 split of the asset value is needed for pool deposits. For instance, if you deposit $50 in BTC, you must also deposit $50 in AVAX. Repeat Step 2 and swap as necessary to obtain what you require. As soon as you click “supply,” you become a liquidity provider, generating yield.
5. The receipt token, or LP token, that is in your wallet serves as a representation of your pool deposit. Use the “Farm” tab at the top of the screen and use the search bar to browse for the BTC.b:AVAX farm.
6. Click on BTC.b:AVAX farm to enter, approve the LP token, and click Stake on the bottom of the page. You will start receiving bonus $AVAX and $JOE tokens as the yield on your deposits as soon as you make a deposit. In fact, you only need to click “Harvest” to receive your rewards.
The above steps show how you can enjoy BTC benefits on Avalanche by using the Core Wallet.
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