Famous DeFi platform Sushi has announced a partnership with ZetaChain to explore Bitcoin trading possibilities for its users across 30 different blockchain networks. The inclusion of Sushi’s decentralized exchange (DEX) into ZetaChain will make it easier to conduct Bitcoin trading operations as defined by the team, locally, without a central authority, and in a permissionless manner.
Sushi and ZetaChain’s Noteworthy Partnership
According to the report, Sushi’s v2 and v3 automated market makers, as well as its cross-chain swapping feature, are being adjusted to include SushiXSwap. Ankur Nandwani, one of ZetaChain’s managers, stated that this partnership would bring Bitcoin’s broad user base into the decentralized finance (DeFi) sector in a local manner. He also refuted the notion that Bitcoin transfers are only possible by storing assets on another chain.
“Early examples like THORChain, which allows local buying and selling of Bitcoin with other ecosystem assets, already exist. Other approaches like Bitcoin sidechains also offer a solution.”
Nandwani added that ZetaChain’s approach effectively enables the creation of decentralized applications (DApps) that can work with Bitcoin, allowing everyone to execute contracts and transactions locally:
“Of course, there are trust assumptions, meaning trusting the decentralization of the network performing this cross-chain transaction.”
What’s Next?
It was reported that ZetaChain has proven the technology at the test network level and will try to prove its benefits through main launch via partnerships with SushiSwap and other DeFi protocols. Sushi administrator Jared Grey described the integration as a significant development for DeFi and proposed that the ability to locally swap Bitcoin would be a game-changer for the industry:
“This is not just about increasing liquidity from Bitcoin; it’s about starting a new chapter in DeFi, where we see more practical use cases of interoperability and enhanced connectivity.”
Sushi’s planned integration with ZetaChain will happen in two stages. In the first stage, Sushi will provide a DEX in the test network of the ZetaChain ecosystem for basic asset swaps and liquidity provision. This stage will also include incentives for beta testing and application testing. In the ongoing process, Sushi will become one of ZetaChain’s launch partners when it deploys its mainnet. Full functionality to support Bitcoin interoperability is expected after the launch.
