Harmony Is Gearing to Launch Bitcoin Bridge

In order to further intensify and widen the scope of its bridging and decentralized solutions, Harmony is now preparing for the launch of its Bitcoin bridge. This launch will be carried out with the help of the community members of the Harmony, and external participation in the process will be ensured through the feature of external vaults. 

The community members of the group will run these external vaults, and they will act as a custodian for Bitcoins of the users for ultimately issuing HRC20 Bitcoins. In order to efficiently work, these vaults need to be collateralized, and users who provide collateral will be paid a 0.5% bridge fee in accordance with the terms and conditions of the platform. 

It is also important to note that there is no limit in terms of the amount of collateral that any one particular vault puts down in order to secure the transactions of BTC issuance. That said, it is expected that vaults must be able to preserve the 150% Collateral ratio, and this ratio is ascertained in terms of the total dollar amount in the vault. 

The incentive associated with the participation process will be delivered to users in terms of the speaking and Bridge fees, as already mentioned above. There is also a provision of providing grants to further make the process more attractive and beneficial for the users. 

In order to make sure that there is enough collateral available all the time, an automated system will be put in place. This system will ensure that the sufficient amount of collateralized amount in vaults will continue to exist at all times. There is a provision of issuing a warning in case the collateralized ratio falls beyond the minimum threshold level. Even after the warning, if the ratio continues to remain on the lower side, there will be the liquidation of the collateral. Now how much the amount of the collateral will be liquidated is still to be announced by the platform. 

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It is very much clear that more vaults in the system will definitely lead to the more effective working of the BTC bridges. This, in turn, is expected to bring more investors and users to the ecosystem of Harmony.

David Cox

David is a finance graduate and crypto enthusiast. He projects his expertise in subjects like crypto and Blockchain while writing for CryptoNewsZ. Being from Finance background, he efficiently writes Price Analysis. Apart from writing, he actively nurtures hobbies like sports and movies.

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