🧡cBTC1 - Bitcoin's Gateway
Introduction to cBTC and Native Bitcoin Money Markets
cBTC1 in the Ordibank context is a specialized representation of Bitcoin on the Ordibank protocol. It serves as a critical bridge between the native Bitcoin environment and Ordibank's money market infrastructure. The significance of cBTC1 lies in its role as a wrapped or tokenized version of Bitcoin, allowing it to seamlessly integrate with Ordibank's off-chain flow & process logic and provide compatibility with the broader DeFi ecosystem. This tokenization of Bitcoin facilitates its usage within the Ordibank platform, enabling users to participate in the money market, utilize it as collateral, and engage in borrowing and lending activities.
For Ordibank, cBTC1 becomes a key asset because it transforms the traditionally non-programmable and non-composable Bitcoin into a dynamic, programmable, and interoperable asset within the Ordibank ecosystem. Users can now unlock the liquidity of Bitcoin on the Bitcoin L1 network and actively participate in decentralized finance applications, enhancing the overall utility and accessibility of Bitcoin in the rapidly evolving blockchain landscape.
Protocol Specific Flows
Swap cBTC with BTC
Analysis: This step involves a user-initiated transaction where the user pays the ord server for inscription and the vault wallet for BTC. Following payment confirmation, the ord server sends the corresponding cBTC (BRC20) from the vault to the user.
Swap BTC with cBTC
Analysis: In this step, the user authorizes the transfer of their cBTC to the vault by paying the ord server. The subsequent process involves the user signing a Partially Signed Bitcoin Transaction (PSBT) to send cBTC and receive (x) amount of BTC, which is then sent to the server. The vault wallet counter-signs the PSBT to complete the transaction.
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