- This milestone was achieved after MakerDao accepted wBTC as a collateral asset.
- wBTC will reportedly assist increase liquidity to the Ethereum and DeFi ecosystems.
- Oasis Borrow, a DeFi platform shall be liable for wBTC vault administration.
MakerDao governance, a decentralized group comprising MKR token holders that govern the Maker Protocol has voted so as to add bitcoin (BTC) to the Ethereum blockchain. Reportedly, this grew to become potential by accepting wrapped Bitcoin (wBTC) as a brand new collateral asset within the Maker Protocol. MakerDao unveiled this information by means of an official announcement on Could 3.
Within the official announcement, MakerDao stated,
“WBTC will assist convey higher liquidity to the Ethereum and decentralized finance (DeFi) ecosystems, and to decentralized exchanges (DEXs).”
This launch makes wBTC (the primary ERC20 token backed 1:1 by BTC) the fourth collateral sort that MakerDao governance has accepted. In consequence, wBTC shall be used alongside ETH, BAT, and USDC to open maker vaults and generate Dai.
A technical and blockchain milestone
As aforementioned, pulling BTC to the Ethereum blockchain will let BTC holders commerce their BTC to open a vault and generate Dai by means of wBTC. Reportedly, this course of was not simple, each technically and policy-wise.
Oasis Borrow, a decentralized finance (DeFi) platform will deal with vault administration.
Outlining the steps for this course of, an Oasis Borrow post famous that BTC holders ought to,
- Signal as much as CoinList
- Full the KYC course of on CoinList
- Ship wBTC to a suitable pockets. These embody, however not restricted to Metamask, Ledger, and Trezor
- Create a wBTC vault to generate Dai
This transfer places an finish to considerations raised by crypto consultants
Earlier than this information, a report unveiled that crypto consultants had doubts about whether or not BTC will ever be part of the DeFi revolution. Within the report, consultants had a number of questions. These embody, what tradeoffs will show most palatable (or slightly, the least unpalatable) for buyers? Will one protocol or resolution nook the market, or will a number of viable instruments peacefully coexist?
Nonetheless, MakerDao’s determination to drag BTC to the Ethereum blockchain has answered all of the above questions.
Do you suppose wBTC will assist increase liquidity within the DeFi sector? Share your ideas within the remark part under.
