interBTC

interBTC is a modular and programmable layer designed to bring Bitcoin into the multi-chain ecosystem. It allows for the seamless integration of Bitcoin with other blockchain networks, enabling decentralized finance (DeFi) applications and cross-chain functionality.

About the Project

The interBTC project includes:

• Collateralized and Permissionless Bitcoin Bridge: Based on the XCLAIM protocol, providing a secure and decentralized way to bring Bitcoin onto other blockchains.
• DeFi Hub: Incorporates a Rust-native Uniswap v2-style AMM, Curve v1-style AMM, and a Compound v2-style money market.
• EVM-Compatible Smart Contracts: Utilizes Parity's Frontier to support Ethereum-compatible smart contracts.
• Bridges to Other Smart Contract Chains: Facilitates interoperability with various blockchain networks.
• Rust Smart Contract Layer: Employs Ink! for Rust-based smart contract development, ensuring compatibility with the broader ecosystem.

Built with

• Rust: The core development language.
• Substrate: A modular framework for building blockchain applications.

Structure

Runtime

• Interlay: Main runtime configuration for Interlay.
• Kintsugi: Canary network runtime configuration.
• Common: Shared runtime configuration for both Interlay and Kintsugi.

Crates

• annuity: Block rewards for stake-to-vote and vaults.
• bitcoin: Library for Bitcoin type, parsing, and verification functions.
• btc-relay: Stateful SPV client for Bitcoin, tracking forks and validating transactions.
• clients-info: Manages current and future interbtc-client software releases.
• collator-selection: Decentralized sequencers (collators) for the chain.
• currency: Handles currencies (e.g., DOT/KSM/IBTC).
• democracy: Optimistic governance fork of pallet-democracy.
• dex-general: Uniswap v2-style AMM implementation.
• dex-stable: Curve v1-style AMM implementation.
• dex-swap-router: Swap router for the AMMs.
• escrow: Rust implementation of Curve's Voting Escrow contract.
• farming: Module for AMM liquidity mining.
• fee: Participant reward calculation and distribution.
• issue: Handles issuing of interBTC for BTC on Bitcoin.
• loans: Compound v2-style money market implementation.
• multi-transaction-payment: Allows payment of transaction fees in assets other than the native one.
• nomination: Interface for vault nomination.
• oracle: Trusted providers set exchange rates and Bitcoin fee estimates.
• redeem: Handles redeeming of interBTC for BTC on Bitcoin.
• replace: Handles replacing vaults.
• reward: Scalable reward distribution.
• security: Manages status and error changes.
• staking: Core logic for vault nomination and slashing.
• supply: Token minting and inflation.
• tx-pause: Manages pausing of transactions.
• vault-registry: Manages registration, collateral, and liquidation of vaults.