Binance lists WBTC amid the ongoing DeFi craze


Binance is the world’s largest cryptocurrency exchange in terms of market capitalization. It is listing another token to support the growth of decentralized finance or DeFi.
Recently, it
had launched the token ONT-33D for
decentralized trading.
Wrapped Bitcoin (WBTC) is a new ERC-20 token. It is pegged to the
price of Bitcoin (BTC). It is now tradeable on Binance.
Binance users can now start deposit WBTC as well as trade the token against Ether (ETH) and Bitcoin.
Wrapped Bitcoin is an Ethereum-based token. It was introduced in
2019. It represents Bitcoin. One WBTC is equal to one BTC. WBTC is a joint
initiative. It was launched by major DeFi players. These include Ren, BitGo,
Kyber Network, Dharma, MakerDAO, Compound, and the Set Protocol. The token aims
to bring more liquidity into the Ethereum network. It also aims to implement it
in the DeFi industry.
It is a part of WBTC’s functionality in DeFi. The token allows
Bitcoin holders to keep holding BTC while also using DeFi apps to borrow or
lend money.
DeFi, or Decentralized finance, envisions a brand-new monetary
system. The system is built on top public blockchains. DeFi platforms connect
borrowers and lenders. This directly eliminates credit checks. These enable
digital assets to be collateralized. DeFi provides decentralized lending as its
key benefit.
In 2020, the DeFi industry has been growing exponentially. The
total value locked in the market has hit $9 billion on Aug. 30. Uniswap is the
most widely-used decentralized exchange on Ethereum. It has surpassed
significant crypto exchange Coinbase in daily volume on Aug. 30.
DeFi continues to see a meteoric rise. The demand for WBTC is
also up, hitting $274 million in circulation by mid-August.
This year, Binance has been embracing the DeFi market. In August 2020, Binance launched DeFi staking. This was in partnership with major industry players like Kava Labs and Compound Finance. In April, Binance issued a new DeFi token. It was backed by the crypto asset, Ontology (ONT).
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