A new portal into Ethereum DeFi for Bitcoin Lightning users

Mainstream DeFi has always passed Bitcoin by. The Bitcoin community is barely involved in the conversations that excite DeFi enthusiasts.

But the team at SatsBridge has come up with a way to give Bitcoiners direct access to Ethereum’s decentralized apps. Here’s the idea:

• Many Lightning Network wallets support LNURL logins - similar to how Ethereum wallets connect to dApps.
• SatsBridge decided to merge these two worlds.
• Their proposal: create smart contract-based accounts on Ethereum and let LNURL authorization from a Lightning wallet serve as the owner’s signature.
• This means you can access an Ethereum smart contract directly from your Lightning wallet.
• For a Lightning user, it looks like a simple wallet login. For the smart contract, it’s a valid instruction to perform actions with the assets held in the account.

Of course, there’s a catch: Lightning wallets only hold satoshis (BTC), while Ethereum DeFi runs on ETH and ERC-20 tokens. SatsBridge’s answer is to keep those assets inside the smart contract account itself, while using Lightning for access and control.

And where can a Bitcoiner get ETH or ERC-20 tokens? That part is easy: on rabbit.io you can swap your BTC into any coin or token at the best rates, with no limits and no registration required.