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MakerDao Brings Bitcoin to the Ethereum Blockchain

MakerDao governance, a decentralized neighborhood of MKR token holders that govern the Maker Protocol, has voted to tug Bitcoin onto the Ethereum blockchain by accepting Wrapped Bitcoin as a brand new collateral asset within the Maker Protocol, in keeping with the official announcement on Might 3. For the uninitiated, wBTC is the primary ERC20 token backed 1:1 with Bitcoin.

WBTC marks the fourth collateral asset sort to be added to the MakerDAO DeFi ecosystem. The previous three included ETH, BAT, and USDT. wBTC will now be capable of open Maker Vaults to be able to generate Dai. The report added that: 

“WBTC will assist convey higher liquidity to the Ethereum and decentralized finance (DeFi) ecosystems, and to decentralized exchanges (DEXs).”

Pulling Bitcoin to the Ethereum blockchain

Bitcoin holders can commerce their BTC to open a vault and generate Dai by way of wBTC. 

The method of opening a vault may be completed on Oasis Borrow — a decentralized finance platform. The conversion takes 5 steps to finish. First customers signal as much as Coinlist, full KYC, wrap BTC to wBTC, ship wBTC to a suitable pockets, after which create a wBTC vault to generate new DAI, in keeping with the report. 

As Cointelegraph reported in early February, greater than $1 billion U.S. {dollars} price of belongings resides in DeFi protocols. Crypto specialists had been reportedly sceptical about early adoption of Bitcoin inside DeFi protocols, but additionally curious and to see how the long run would evolve.

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