The prospect of Bitcoin on Ethereum blockchain has always fascinated the crypto fans. Now, MakerDao has achieved this feat by using a ‘Wrapped Bitcoin.’ The decentralized community, Maker Dao, has full authority over the MakerDao Protocol, and they have decided that a new collateral asset called ‘Wrapped Bitcoin’ (wBTC) is an ideal way to bring Bitcoin on Ethereum blockchain.
According to the announcement, the MakerDao protocol will now offer transactions between BTC and ETH using a wBTC, which is an ERC20 token. Such a setup will undoubtedly increase the liquidity quotient on the platform.
Adding Bitcoin on Ethereum blockchain has its advantages
Interestingly, Bitcoin is the fourth offering on the MakerDao DeFi platform. There are already three collateral asset categories in the ecosystem, namely USDT, ETH, and BAT. Traders are already transacting using these asset types. With the introduction of Bitcoin on Ethereum blockchain, the wBTC Maker Vaults would now be permitted to ensure appropriate Dai generation.
With the launch of BTC on ETH blockchain, liquidity crunch will be sorted to a great extent. The entry of wBTC is beneficial for the entire DeFi realm, including the decentralized exchanges. Read More