Bitfinex launches the first L2 bridge from CeFi to DeFi

Published at: Sept. 23, 2021

Crypto exchange Bitfinex has today announced a market-debut service to bridge its centralized platform with the layer-2 decentralized trading platform DeversiFi. 

The bridge will provide users access to the permissionless and privacy-centric experiences of decentralized finance (DeFi) systems, in combination with the highly liquid, accessible features of centralized finance (CeFi) institutions. A release from the company noted that transactions will be initially exclusive to Tether (USDT) — a stablecoin affiliated with the exchange — but may eventually open up to various ERC-20 tokens in the future.

Ethereum-based DeversiFi is a trading platform built upon StarkWare’s scalable technology. Two months ago, they launched the first layer-2 bridge between Ethereum and Polygon Network designed to deviate from the pricey gas fees commonly experienced on-chain.

Layer-two platforms such as Arbitrum and Optimism have witnessed a substantial rise throughout 2021, contributing to the further adoption of decentralized finance protocols.

Related: Ethereum-based DeFi platform DeversiFi raises $5M in strategic investments

Will Harborne, CEO and Co-Founder of DeversiFi, said:

“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. 

CTO of Bitfinex, Paolo Ardoino also shared his expectations on potential adoption following the launch:

"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."

Tags
Blockchain
Business
Defi
Layer2
Bitfinex
Erc-20
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