Wrapped Bitcoin (WBTC) is Now Officially Part of the Compound DeFi Protocol
- A spokesperson for Compound Labs recently commented that the firm’s executive brass had postponed their plans to launch WBTC (on the DeFi protocol) because they felt that their platform was still not mature enough.
- Previously, there existed a large WBTC pool that had been created on Uniswap.
As per an all new statement released by Compound Labs, the firm has just added Wrapped Bitcoin to its list of public investment offerings. In this regard, it should be pointed out that this decision came into effect after the project’s core community of users voted in favor of the move almost unanimously.
Additionally, for those of our readers who may not be aware of what wrapped bitcoin is, it is in its most basic sense an ERC20 token whose value is pegged in a ratio of 1:1 with BTC.
According to an official statement released by the firm, the token is now active on the Compound protocol (as a result of which, investors can now borrow and earn interest on the digital asset).
We're excited to announce that WBTC has just been added to the Compound protocol! This is a small step for Compound, and a giant leap for Bitcoin on Ethereum 📈https://t.co/T5N2PnxHmh
— Compound (@compoundfinance) July 16, 2019
Compound CEO — Robert Leshner — stated in a recent interview that by deploying WBTC within the ethereum ecosystem the firm was taking a massive step in the overall evolution of Bitcoin as a legitimate financial asset.
One key concern that currently exists in relation to the aforementioned developments is that the BTC being used to back Compound’s offering is centralized — since it is owned by custodial services such as BitGo.