It will be possible to conduct ERC-20 token transactions between centralized and decentralized exchanges using the bridge launched by Bitfinex.
Investing in cryptocurrencies With the launch of its market-debut service, Bitfinex will be able to connect its centralized platform to the layer-2 decentralized trading platform and subsidiary DeversiFi.
When used in conjunction with the permissionless and privacy-centric experiences of DeFi, the bridge will allow users access to the highly-liquid and accessible capabilities of CeFi.
Transactions will initially be restricted to Tether (USDT), a stablecoin linked with the exchange, according to a press release from the business, but it is possible that the exchange may soon open its doors to other ERC-20 tokens as well.
Ethereum-based With the help of scalable technology from StarkWare, DeversiFi has created a trading platform for the cryptocurrency market. They built the first layer-2 bridge between Ethereum and the Polygon Network two months ago, with the goal of diverting users’ attention away from the high gas prices that are often seen on-block.
CEO and Co-Founder Will Harborne of DeversiFi shared the following statement:
“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.
Paolo Ardoino, the Chief Technology Officer of Bitfinex, also stated his thoughts for future 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.”