The bridge will enable fast and low-cost transfers between Centralised Finance (CeFi) and Decentralised Finance (DeFi), while skipping Layer-1 (L1) Ethereum all together.
It’s our mission at DeversiFi to make DeFi truly accessible and we’re excited to announce our second bridge. This will be the first Layer-2 (L2) bridge between centralised exchange Bitfinex, and a decentralised exchange, enabling fast and low-cost transfers for ERC-20 tokens, starting with Tether tokens (USDt).
This bridge is another piece in the puzzle, by helping make the costs of depositing between different blockchains more accessible.
Why build this bridge?
Centralised exchanges are an entry point into cryptocurrency for many users and this new bridge will help thousands more access DeFi, by giving users from both exchanges access to the opportunities on each platform, without having to transact on L1 Ethereum (and those pesky fees that go with it!).
Will Harborne, CEO, and Co-Founder of DeversiFi believes that L2 is the future of blockchain.
“Layer-2 is the future of blockchain. Whether it’s the Lightning Network for Bitcoin or roll-ups such as DeversiFi for Ethereum, cryptocurrencies, and DeFi are finally on the verge of becoming accessible to everyone” he said.
“Today, centralised exchanges are where most people get their first taste of cryptocurrencies, and so it’s amazing to see Bitfinex leading the way in connecting their customers directly to DeFi on Layer-2.”
Paolo Ardoino, CTO at Bitfinex, showed his enthusiasm for Bitfinex leading the way in the industry.
“Bitfinex is an established pioneer in the digital token space and the launch of this Layer-2 bridge with DeversiFi represents yet another first in technological innovation,” he said.
“I feel confident that there will be a ready uptake of this low-cost transfer mechanism among our customer base as interest in DeFi continues to grow.”
Through the bridge, users will now be able to enjoy the fully permissionless, secure, and speedy nature of decentralization, with the benefits of using one of the largest centralised exchanges in the world.
How will it work?
Sending USDt from Bitfinex to DeversiFi
- Log into your Bitfinex and go to the ‘Wallet>Withdraw’ section of the platform
- Choose to withdraw ‘Tether Token USDt’
- Select the network from the dropdown ‘Tether (USD) on DeversiFi’
- Enter the Ethereum address you have used on DeversiFi
- Confirm the transfer and complete security checks
- You will now receive USDt directly on L2 and can view it by connecting your Ethereum wallet to the DeversiFi website!
Sending USDT from DeversiFi to Bitfinex
- Connect your Ethereum wallet to DeversiFi
- Head to the Portfolio section and choose Withdraw
- Select USDt, and then choose the ‘Bitfinex’ option
- You will be required to enter a ‘Memo’ for your withdrawal, which you can get by logging into your Bitfinex account, and going to ‘Wallet>Deposit>USDt’
- After entering the memo, complete the transfer!
DeversiFi will now not only act as a gas-free L2 DeFi hub for traders to obtain access to some of the best opportunities and yields in DeFi, but will also serve as a highway between the Polygon network and Bitfinex, following the successful launch of our very first L2 bridge earlier this month. This means that users will be able to seamlessly move funds from the Polygon network to Bitfinex via DeversiFi, without ever paying expensive on-chain gas costs.
While the bridge will initially launch with USDt, we plan to expand the ERC-20 tokens the bridge supports very soon.
DeversiFi makes DeFi easy. Swap, Invest and Send without paying Ethereum network fees.