MakerDao governance, a decentralized neighborhood of MKR token holders that govern the Maker Protocol, has voted to drag Bitcoin onto the Ethereum
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, based on 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 kind to be added to the MakerDAO DeFi ecosystem. The previous three included ETH, BAT, and USDT. wBTC will now have the ability to open Maker Vaults with the intention to generate Dai. The report added that:
“WBTC will assist convey better 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 way of wBTC.
The method of opening a vault may be carried out 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, based on 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 additionally curious and to see how the long run would evolve.