Demand for wrapped bitcoin increases along with the DeFi rally. In terms of market capitalization, Binance is the largest cryptocurrency exchange in the world. It is listing another token for the support of the growth of Decentralized finance, or DeFi.
Wrapped Bitcoin (WBTC) is pegged to the price of Bitcoin (BTC). Thus, WBTC is a new ERC-20 token. It is now tradeable on Binance according to an Aug.31 blog post by the exchange.
Now, Binance users can start to deposit Wrapped Bitcoin. Moreover, they can trade the token against the Bitcoin and Ether (ETH), as officially announced.
WBTC is an Ethereum-based token, and it represents Bitcoin.
One Bitcoin is equal to one Wrapped Bitcoin. WBTC came from the major DeFi players like Compound, Kyber Network, BitGO, Ren, Dharma, Set Protocol, and MakerDAO. The token will bring more liquidity with Bitcoin into the Ethereum network. Furthermore, it will implement it in the Decentralized Finance industry.
The token Bitcoin holders can keep holding bitcoin and simultaneously use DeFi applications like Compound to borrow and lend money, as part of wrapped bitcoin’s functionality in DeFi.
Opposed to traditional finance, decentralized finance (DeFi) envisions a brand-new monetary system built on top public blockchains. Directly eliminating credit checks, DeFi platforms connect borrowers and lenders. Furthermore, users can collateralize digital assets. So, DeFi is providing decentralized lending as its key benefit.
The Decentralized Finance industry has been growing exponentially in 2020. On August 30, the total value locked in the market hit $9 billion. The most widely used decentralized exchange on Ethereum is the Uniswap. So, in daily volume on August 30, it surpassed significant crypto exchange Coinbase. That is what earlier today, Cointelegraph reported.
DeFi sees a meteoric rise. Furthermore, the demand for Wrapped Bitcoin is rising.
Binance launched DeFi staking in partnership with major industry players like Kava Labs and Compound Finance.