Wrapped Bitcoin (WBTC) is Now Officially Part of the Compound DeFi Protocol

In terms of the business model Compound employs, it makes use of the same interest rate scheme that is currently being used by other popular crypto offerings such as ETH, BAT, ZRX,

  • 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).

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.

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Shiraz J
Shiraz is a multi-year cryptocurrency analyst and blockchain journalist residing in Melbourne, Australia. When he is not writing about the bitcoin ecosystem, he enjoys the art of meditation, playing the blues and traveling the world.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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