MakerDao Governance, a decentralized community of MKR token holders that governs the Maker Protocol, voted to pull Bitcoin (BTC) onto the Ethereum blockchain by accepting Wrapped Bitcoin as a new collateral asset in the Maker Protocol.
According to the official announcement, for the uninitiated, wBTC is the first ERC20 token with Bitcoin backed by 1:1.
WBTC marks the fourth type of collateral asset to add to the MakerDAO DeFi ecosystem. The former three comprised ETH, BAT, and USDT. The wBTC could now open Maker Vaults to generate Dai. The report added:
“WBTC will help bring greater liquidity to the Ethereum and decentralized finance (DeFi) ecosystems, and to decentralized exchanges (DEXs).”
Pulling Bitcoin to Ethereum Blockchain
Bitcoin holders can trade their BTC through wBTC to open a vault and generate Dai.
On Oasis Borrow, a decentralized finance platform, the process of opening a vault may be done. The conversion is completed in 5 steps. First users sign up for Coinlist, complete KYC, wrap BTC to wBTC, send wBTC to a compatible wallet, and then create a wBTC vault to generate new DAI, the report states.
As reported in early February, assets worth more than $1 billion reside in the DeFi protocols. Crypto experts were reportedly skeptical about Bitcoin’s early adoption in DeFi protocols, but also curious and interested in seeing how the future would evolve.
Cryptolydian reported earlier that,
MakerDao (MKR) has released a new report that attempts to contextualize the ‘Black Thursday’ events and recommends safeguards to ensure that it can never happen again.
A roughly 50 percent crash in Ethereum’s price (ETH) on March 12-13 led to the under-collateralization of debt positions underpinning Maker’s Dai (DAI) stablecoin.