MakerDao Brings Bitcoin to Ethereum Blockchain, Following ETH, USDT & BAT
The governing forum of MakerDao has approved to host Bitcoin on the Ethereum blockchain through the use of Wrapped Bitcoin as a fresh collateral asset in the Maker Protocol.
It can be remembered that wBTC is the first ERC20 token pegged to Bitcoin at a 1:1 ratio.
wBTC is the fourth digital asset to be included in the MakerDAO DeFi ecosystem. The other three are ETH, USDT and BAT.
With this inclusion, wBTC will be able to open Maker Vaults for generating Dai. The report stated that:
“WBTC will help bring greater liquidity to the Ethereum and decentralized finance (DeFi) ecosystems, and to decentralized exchanges (DEXs).”
Bitcoin holders can use their BTC holdings to open a vault and create Dai via wBTC. A vault can be opening via Oasis Borrow, a decentralized finance platform. There are five steps in conversion process.
To begin with, users become a member of Coinlist, go through KYC process, wrap BTC to wBTC, remit wBTC to a synchronized wallet and then establish a wBTC vault to create fresh DAI.
— Maker (@MakerDAO) May 3, 2020
Over $1 billion US dollars’ worth assets is held in DeFi protocols. Cryptocurrency professionals were cynical about early adoption of Bitcoin within Defi covenants, but also inquisitive to know how the future would unfold.