MakerDAO governance token holders voted to simply accept wBTC because the fourth collateral asset within the Maker DeFi Protocol.
MakerDao governance, a decentralized neighborhood of MKR token holders that govern the Maker Protocol, has voted to drag Bitcoin onto the Ethereum blockchain by accepting Wrapped Bitcoin as a brand new collateral asset within the Maker Protocol, in response to the official announcement on Might 3. For the uninitiated, wBTC is the primary ERC20 token backed 1:1 with Bitcoin.
WBTC marks the fourth collateral asset sort to be added to the MakerDAO DeFi ecosystem. The previous three included ETH, BAT, and USDT. wBTC will now be capable to open Maker Vaults with a purpose to generate Dai. The report added that:
“WBTC will assist deliver larger liquidity to the Ethereum and decentralized finance (DeFi) ecosystems, and to decentralized exchanges (DEXs).”
Pulling Bitcoin to the Ethereum blockchain
Bitcoin holders can commerce their BTC to open a vault and generate Dai by means of wBTC.
The method of opening a vault could be performed on Oasis Borrow — a decentralized finance platform. The conversion takes 5 steps to finish. First customers signal as much as Coinlist, full KYC, wrap BTC to wBTC, ship wBTC to a appropriate pockets, after which create a wBTC vault to generate new DAI, according to the report.
As Cointelegraph reported in early February, greater than $1 billion U.S. {dollars} value of property resides in DeFi protocols. Crypto consultants have been reportedly sceptical about early adoption of Bitcoin inside DeFi protocols, but in addition curious and to see how the long run would evolve.
