Interlay (interBTC) is a parachain that allows users to use their BTC on other parachains by locking up BTC in vaults, which, if I understood correctly act as a network of verifiers. How can I run an interBTC vault and what are the advantages to running one?
From the documentation, to become a Vault you need:
- A Vault client.
- A Bitcoin full node.
- A Polkadot account (public/private keypair).
- Some KSM/DOT to provide as collateral and pay for transaction fees.
As for the advantages, running a Vault allows you to earn fees and rewards:
- All Vaults are part of a fee pool and earn fees in interBTC when any user issues or redeems interBTC.
- Vaults on Kintsugi receive a KINT block reward.
- Planned feature: subject to governance, Vaults are able to provide collateral in liquid staked assets like LKSM or LDOT to receive both staking rewards from the relay chain and the rewards form the Kintsugi/interBTC bridge.
In addition, you can be your own Vault if you're a large liquidity provider and don't want to rely/trust other Vaults. In this case you retain custody over your BTC holdings until you sell interBTC.
In additional, there's a guide to run a vault.
With Docker/Docker Compose
Setup the Vault client using docker-compose. This guide is only for the testnet, please follow the Standard Installation for Kintsugi.
- Install docker and docker-compose
- Download the docker-compose file
Or without Docker:
Run Bitcoin and the Vault binary as a service on your computer or server. > Follow this guide if you are interested in operating a Vault for earning and participating in the protocol.
- Install a Bitcoin node
- Install a pre-built binary