Strudel Finance | Creating a Trustless bridge between Bitcoin and Ethereum
Using a bridge to wrap tokens and altcoins have been on the rise, but users are at risk of losing credibility and assets. However, Strudel Finance presents a safe, secure, and intelligent solution in the form of a trustless bridge. Strudel Finance is the first bridge that joins Ethereum with Bitcoin.
By using the platform’s Dapp, users can easily convert BTC tokens to a new asset, vBTC. The earlier technologies working in the same trend are centralized bridges, that puts the other blockchain at a greater risk. But, Strudel Finance is the link between two blockchains, and it protects the extensibility and authenticity of both Bitcoin and Ethereum blockchain.
With its functioning and modern technological setup, Strudel Finance upgrades the blockchain while helping users to capitalize on forces of crypto-economics. Strudel Finance allows farming and minting of the vBTC to further create better engagement with the audience.
How does BTC transform to vBTC?
The transformation is done with a one-way Strudel Finance Bridge. A unique gateway connects both sides (Ethereum and Blockchain) and allows the members to convert the assets into the other cryptocurrency with 1:1 ratio. The conversion is facilitated with the Strudel Protocol Identifier.
When a user initiates the transaction to convert, Bitcoins are first burned and then marked with the protocol. Once it is done, the burn transaction is then forwarded to Ethereum. In addition to this, the transaction is verified and authenticated by a Simple Payment Verification (SPV) method that restricts the false blocks to move ahead in the chain.
The Strudel Protocol mints vBTC only after getting enough proof. By burning 1 BTC, the protocol generates 1 vBTC without incurring any sort of crossing fees. The greatest benefit of this trustless bridge is that now the BTC users do not necessarily have to hodl the BTC coins.
With the Strudel Finance Bridge, these users can benefit by adding versatility to the existing BTC coins. The ERC20 interface brings interoperability between Bitcoin and Ethereum blockchain.
Liquidity Provisioning by Farming on Strudel – Terra Farms
A user can have two types of assets on Strudel, vBTC, and $TRDL. Both the assets can be used to provide liquidity to the platform and earn incentives. Like any other DeFi platform proffering liquidity benefits to the users, Strudel also leverages form the mechanics of crypto-economics. This is also done to strengthen the foundation of the platform and harness trust.
To operationalize this system, Strudel Finance uses Terra Farms. There are two farms on Strudel vBTC-WETH and $TRDL-ETH that are developed to stake liquidity on the platform.
Farming often entails issuing a higher number of coins. This higher supply leads to pressure on the platform, and the price dwindles over time. Strudel faced a similar situation initially, which led to the development of reflexive farming and coin issuance.
As per this method, the coin issuance exercise is combined with a bonus multiplier. The multiplier takes effect automatically and saves users from the volatile nature of the transactions. This stability ensures a gradual increase in the $TRDL supply while maintaining a higher ROI for the farmers.
A New Reward System Under New Governance System
Just like any other community-oriented platform, Strudel Finance also allows the community to take decisions by giving them power to vote. The users can also lock their $TRDL to earn voting power.
With two types of voting systems, Mainnet (voting on Ethereum) and Snapshot (third-party based), Strudel Finance helps empower the community, gain more flexibility and achieve absolute decentralization.
Working for the community means that the developers listens to the user experience and implement the changes to make the platform oriented towards the community. On these lines, Strudel Finance has refurbished the reward structure to double the $TRDL yield rate.
As per the new reward system, the users on $TRDL/ETH pool will receive 60% of the reward generated while the vBTC/ETH pool will receive 40%.
To sum it up…
Strudel Finance is a smart, innovative, and future-ready platform that gives the users access to better investment options by giving them access to two of the biggest cryptocurrency blockchains, Bitcoin and Ethereum. From innovations in the governance solutions to farming, Strudel Finance is going to become a great asset for the users.