Wrapped Bitcoin Finally Makes Its TRON Debut via BitGo
Wrapped Bitcoin (WBTC) has successfully launched on the TRON blockchain together with its Wrapped Ethereum (WETH) counterpart. The introduction of the wrapped assets, which will be represented as TRC20 tokens on TRON, is the culmination of a partnership with BitGo that was sealed last year.
BitGo is the leading crypto custodian in the space and the issuer of WBTC, using a multisig to lock BTC on the Bitcoin blockchain before issuing a corresponding equivalent on the smart contract chain in question. This can be done using a service such as wbtc.cafe or via a browser wallet such as Liqui, which automates the process on behalf of users. Once sufficient WBTC has been issued on TRON, users will be able to buy it directly using an AMM such as JustSwap.
Boosting BTC’s Defi Credentials
BTC was long constrained to its native blockchain, leaving ETH to become the de facto cryptocurrency of defi, with bitcoin serving only as a store of value. As defi has matured, however, and the amount of tokenized BTC on Ethereum has risen, the number of ways in which BTC can be utilized has also increased. Yield farming projects such as Badger and Snowswap have focused on boosting the amount of tokenized BTC, incentivizing bitcoiners to wrap their BTC and use it in smart contract platforms to earn yield.
That same capability will now be coming to TRON, where a burgeoning defi scene is already taking shape. In terms of decentralized finance, TRON is perhaps six months behind Ethereum when it comes to provisioning the tools and platforms for capturing the full potential of defi. By summer, it’s likely that large amounts of WBTC will be in circulation on TRON, with dedicated yield farms and staking platforms springing up to cater to this demand.
BitGo Goes Where Tether Led
In issuing Ethereum-based tokens on TRON, BitGo is following the lead of Tether, which issued billions of dollars of USDT on the TRON network last year.
“As the custodian for wrapped tokens, BitGo is leading defi growth and generating liquidity across blockchains,” said the company’s Chief Product Officer, Chen Fang. “We are witnessing the growth of this ecosystem with unique and unexplored use cases for wrapped assets by bringing WBTC and WETH to Tron.”
“This is the beginning of a new era wherein TRON’s growing community may finally enjoy the unlimited potential of defi,” added Justin Sun. “With this partnership, JustLink, JustSwap, and TRON’s growing suite of defi services, we will continue to cultivate an ecosystem for our users to access their favorite cryptocurrencies with innovative financial mechanisms and high liquidity.”
TRON’s greater scalability versus Ethereum makes it better suited to defi usage, where low fees are a requisite in order to participate in core decentralized finance services such as lending, staking, yield farming, and trading. Crippling fees on Ethereum, which surged to over 500 gwei this week, have made the network suitable only to whales, who can afford to pay $100 at a time to make Uniswap trades.
Most users don’t have this luxury, which is why WBTC and WETH’s arrival on TRON should prove a godsend to yield farmers hamstrung by high fees.
To keep track of DeFi updates in real time, check out our DeFi news feed Here.
Source: Read Full Article