Users Can Now Access More DApps With WBTC
WBTC is the result of a joint venture by BitGo, Ren (formerly Republic Protocol), Kyber Network, and other community partners.
It enables cross-chain functionality, aiming to enhance decentralized applications (DApps) by bringing Bitcoin’s liquidity to the Ethereum ecosystem.
The new format of WBTC opens new opportunities for a wide range of existing ERC20-based applications, as well as for innovative new use cases as the ecosystem grows.
DApps such as Dharma, Compound, dYdX, bZx, Gnosis, Set protocol Maker, and more, will now be able to leverage Bitcoin for margin trading, decentralized lending, and derivative markets.
The combination of each network’s competitive advantage, Ethereum’s smart contracts and Bitcoin’s liquidity, allows traders to facilitate token trades based on Bitcoin’s value, on decentralized exchanges (DEXs) like AirSwap, ETHfinex, DDEX, IDEX, Loopring, KyberSwap, Radar Relay, RenEx, TheOcean, Switcheo Network, and Dolomite.
Additionally, the cross-chain capabilities will help wallets providers like imToken to mitigate their operational costs as WBTC will allow them to support multiple currencies while only maintaining the one Ethereum node.
An Absolutely Transparent Token Driven by the Community
Each WBTC token will be backed by an equivalent amount of BTC, in a 1:1 ratio which will be kept in custody by BitGo, an institutional crypto financial services provider.
The initial liquidity will be provided by Kyber Network and Ren, with pre-mined WBTC tokens from their own Bitcoin inventory.
Users will be able to execute WBTC and BTC conversions on AirSwap, Dharma, GOPAX, ETHfinex, Kyber Network, Prycto, Ren, and Set Protocol, the eight merchants that will initially support conversions.
The WBTC token liquidity will also be supported by other decentralized and centralized crypto exchanges that have procured WBTC inventory.
WBTC will also be usable in wallets and DApps integrated with Kyber Network as well as financial DApps like bZx, Dharma, Compound, and dYdX.
Users will be able to monitor the live token supply through a dashboard on the WBTC platform, while token information will also become available on websites like Coingecko.
WBTC is a community-led token, focused on maintaining a transparent governance structure.
All critical decisions about the structure of WBTC have to be approved by the DAO, which consists of members like AirSwap, Blockfolio, BitGo, Compound, Dharma, Gnosis, DDEX / Hydro, GOPAX, Kyber Network, MakerDAO, OmiseGO, Loopring Protocol Prycto, Ren, TheOcean, and Set Protocol.
For the ecosystem’s transparency and the auditing of smart contracts, the WBTC community has relied upon reputable auditing firms, such as ChainSecurity, Solidified Technologies, and Coinspect.
The existence of the reserved assets is verified on-chain and can be monitored by Etherscan, which guarantees the 1:1 ratio “between minted WBTC tokens and Bitcoin held by the custodians.”