Details

iBTC is a decentralised wrapped Bitcoin minted from self-custody, enabling Bitcoin holders to participate in DeFi protocols while retaining full ownership of their assets. It utilises Partially Signed Bitcoin Transaction (PSBTs).

How iBTC Works

Locking $BTC: Users lock their $BTC into a PSBT using iBTC's bridge. This process mints $iBTC tokens equivalent to the amount of $BTC locked.


DLC Mechanism: A PSBT acts as a lockbox via a "contract" on the Bitcoin blockchain, taking the form of a pre-signed agreement of possible transaction outcomes between the user and the protocol.

Key Distribution: Users hold one key to the multisig UTXO, and the second is distributed among the attestor nodes. The PSBT can only be liquidated back to the user, safeguarding against theft or loss.


Attestor Layer: A network of seven trusted node operators monitor blockchain events, accept $DLC creations, and validate EVM blockchain outcomes. They support the bridge by ensuring reliable cross-chain communication without holding users' keys or having custodial ownership of the locked funds.


Using $iBTC : Minted $iBTC tokens can be used as collateral in lending protocols, liquidity pools, and DeFi options, such as Covered Calls to generate yield.

Problem & Solutions

Bitcoin wrapping solutions that aim to allow users to gain liquidity and functionality out of their Bitcoin face great counterparty risk. For example, Wrapped Bitcoin - wBTC - is backed 1:1 with native $BTC and custodied by BitGo, an independent third -party entity. Though custodians promise to safekeep the Bitcoin, this introduces significant counterparty risk. Wrapped Bitcoin in particular suffers from a number of risks including blackbox, censorship, and regulatory risk. In other words, wBTC is a centralised solution with one point of failure.

iBTC uses multiple decentralized attestors and a self-custodial model to secure the $iBTC network ensuring no central point of failure.