Today, a thousand wrapped bitcoin (WBTC) were minted on the Ethereum (ETH) networkA single transaction that is worth more in US dollars than the entire Lightning network.
This increases the total amount of Bitcoin stored in the WBTC tokens to 2,300.compared to the approximately 927 Bitcoin (BTC) stored on the Lightning network.
According to DeFi Pulse’s decentralized financial data aggregator The USD value of wBTC is USD 20.7 million, making it the eighth largest decentralized financial protocol (DeFi).
WBTC grows with DeFi
Wrapped bitcoin is an ERC-20 token that Users can access popular ETH-based DeFi protocols with the value of their Bitcoin holdings.
The users’ Bitcoin is in the hands of the BitGo custodian, while eight “start-up traders” act as intermediaries between the users and the custodianThese include Dharma, Kyber, Ren, DiversiFi, Set Protocol, Gopax, AirSwap and Prycto.
The wrapped Bitcoin protocol is operated by a decentralized autonomous organization with 16 projects, including Initial Traders, Compound and MakerDAO.
BTC can be redeemed by burning wBTC tokens.
Synthetic ETH-based BTC protocols are multiplying
The recent increase in DeFi popularity has led to an increase in the number of DeFi projects offering Bitcoin tokenization on the Ethereum network.
At the beginning of April, PieDAO launched its first fund, PieDAO BTC ++. The fund offers exposure to a diversified basket of synthetic BTC protocols that allow users to use their token to access DeFi while covering the failure or goal of a synthetic BTC project. PieDAO BTC ++ includes 25% wrapped BTC, 25% Synthetix BTC, 25% Provable BTC and 25% ImBTC.
In November 2019, the decentralized Tokenlon exchange launched the BTC synthesis protocol in the BTC. However, tokens have recently sparked controversy after being used in attacks against Uniswap and DForce last month.
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