Cryptocurrency news

The RSK Bitcoin sidechain adds support for the DAI stablecoin

The RSK Bitcoin sidechain adds support for the DAI stablecoin

The developers of IOV Labs, who launched the RSK Bitcoin sidechain, announced the possibility of using the DAI stablecoin from the Ethereum blockchain.

The integration will allow the transfer of DAI coins from Ethereum to the RSK sidechain, so that THEY can be used in a decentralized Bitcoin-based financial ecosystem. This involves a mechanism developed by the RSK Infrastructure Framework (RIF) team, which serves as a “bridge” for transferring Ethereum-based tokens. This bridge blocks coins in the Ethereum blockchain and creates an equivalent amount in RSK, thereby implementing a decentralized binding via smart contracts.

IOVLabs management said that the audit was conducted by Trail of Bits and integration specialists Maker Foundation. Trading pairs for RSK DAI (rDAI) were created based on RSK Swap, a fork of the Uniswap Protocol.

IOVLabs CEO Diego Gutierrez explained that rDAI was created as an alternative digital asset, transactions with which will cost much less, and this will help avoid overloading the Ethereum network. According to Gutierrez, the high cost of gas in Ethereum and its lack of scalability hinder the implementation of DAI in the retail market. In particular, we are talking about traders who do not receive the desired services in traditional markets and are interested in conducting transactions for small amounts with low commissions.

Gutierrez said that thanks to the combined mining, using DAI in the RSK sidechain will be as safe as in the Bitcoin blockchain. In addition, transaction fees will be 50 times lower compared to the current fees in the Ethereum blockchain.

IOV Labs developers position RSK as a Bitcoin-based decentralized Finance platform. In February, IOV Labs launched a tool that allows you to transfer RSK and Ethereum-based crypto assets, including ethers and ERC-20 tokens, between the Bitcoin and Ethereum blockchains. Last week, the firm announced that it will work with Grupo Sabra to create an Extrimian platform for developing enterprise decentralized solutions based on blockchain.