Binance lists WBTC amid the ongoing DeFi craze
Crypto Business World
CBW -External Analyst
Sep, 26 2020
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).
The information provided through the above Content is for informational purposes only. The Content is not intended to be, and does not, constitute financial advice or any other advice. You should consult with a financial professional to determine what may be best for your individual needs. We do not make any guarantee or other promise as to any results that may be obtained using our Content. To the maximum extent permitted by law, we disclaim any and all liability in the event any information, commentary, analysis, opinions, advice, and/or recommendations prove to be inaccurate, incomplete, or unreliable or result in any investment or other losses.
Crypto Business World
CBW - External Analyst