Making WBTC Natively Omnichain

WBTC is the largest Bitcoin-based ERC-20 token deployed in DeFi, with native integrations on several other chains including Ethereum, Tron, Osmosis, and Base. It also exists on other chains through non-canonical, third-party bridging methods, which introduce security, liveness, and centralization risks. BitGo has partnered with LayerZero as an interoperability provider to expand Wrapped Bitcoin (WBTC) beyond its existing deployments. With WBTC now live on Avalanche and BNB Chain, LayerZero’s messaging protocol will allow WBTC to operate as a truly native, omnichain asset across these ecosystems. This strategic integration opens up new horizons for WBTC’s composability and liquidity in DeFi.

What Does It Mean to be “Native”?

A “native” WBTC deployment on a new chain means that the token exists directly within that chain’s environment, fully integrated, owned, and recognized as an asset by BitGo. Without relying on wrapped representations or synthetic assets that are often controlled by third-party bridges. This native deployment is critical for security and composability, allowing WBTC to exist without additional trust assumptions.Users holding WBTC on one chain can seamlessly move it to another supported chain without needing to swap or unwrap tokens, maintaining the token’s integrity and reducing fragmentation across chains. You can do this on Stargate Finance today, and other interfaces are expected to support omnichain transfers of WBTC soon.

Decentralized Verifier Network (DVN) for WBTC

The omnichain message passing happens securely via a decentralized verifier network. BitGo will own the security configuration for WBTC transfers.For WBTC, BitGo has implemented a unique 1-of-2-of-3 DVN setup:

• Required Verifier (BitGo DVN):

  Every WBTC transfer between chains must be verified by BitGo’s own DVN, ensuring that BitGo always has direct oversight and approval of omnichain transfers. This means BitGo retains control over the verification of all WBTC movements.

• Optional Verifiers (LayerZero Labs and Polyhedra):

  In addition to BitGo, 1 of the 2 optional DVNs (LayerZero Labs and Polyhedra) must also verify the same payload hash for a transfer to complete. This configuration ensures redundancy and flexibility, providing continued liveness even if one verifier is compromised or experiences downtime.

Why This DVN Setup Matters:

1. Enhanced Security through Diversity:

   Using both proof of authority (LayerZero Labs) and zk-proofing (Polyhedra) means that two distinct methods of cryptographic verification are in play. This layered approach minimizes the risk of a single point of failure.

2. Control and Configurability:

   BitGo not only participates as a required verifier but also controls the optional verifiers involved in the process. If any verifier behaves maliciously or is compromised, BitGo can detect and replace them without disrupting WBTC transfers.

3. Censorship Resistance and Immutability:

   Endpoints are immutable smart contracts, they cannot be altered or censored once deployed. This architecture aligns perfectly with BitGo’s commitment to maintaining a censorship-resistant environment for WBTC transfers.

Expanding Beyond Avalanche and BNB Chain and Maintaining Sovereignty Over WBTC

The integration on Avalanche and BNB Chain is just the beginning. The ability to deploy WBTC in a native format on any new chain means that users can expect the same level of security and interoperability regardless of where they operate. Moving forward, WBTC holders will enjoy more seamless and direct access to various DeFi opportunities across multiple blockchains. Looking ahead, BitGo is committed to continuously evaluating the liveness and performance of its DVN setup while exploring additional DVN partners like Lagrange (ZK proof specialists), Axelar (middlechain), Hashi (multi-bridge solutions), and Google Cloud (enterprise signers).

Learn more from LayerZero: https://layerzero.network/