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Maker Adds Wrapped Bitcoin as Collateral for Dai Stablecoin

from Crypto Globe 3 years ago 0 0 1110

Decentralized governance community MakerDAO has voted to allow bitcoin integration onto ethereum's blockchain.

Bitcoin holders can participate in the Maker protocol via the use of wrapped BTC.

Decentralized governance community MakerDAO has voted to allow the integration of wrapped bitcoin (wBTC) to be used as collateral for the Dai stablecoin.

According to the official update made on May 3, bitcoin users can convert to their BTC into WBTC for use on Ethereum’s blockchain and as a new collateral asset in the Maker protocol. WBTC, the first ERC-20 token backed one-to-one with bitcoin, allows bitcoin holders to open Maker Vaults in order to generate Dai.

Bitcoin holders can now turn their BTC into WBTC (bringing Bitcoin to the Ethereum blockchain), and then use it to generate Dai.https://t.co/STskGXQeffcc @WrappedBTC— Maker (@MakerDAO) May 3, 2020

The report reads,

WBTC will help bring greater liquidity to the Ethereum and decentralized finance (DeFi) ecosystems, and to decentralized exchanges (DEXs).

The post continued, highlighting the “flexibility” of the Maker Protocol in allowing any kind of tokenized asset to be used as collateral, assuming it receives approval.

WBTC is the fourth collateral asset to be approved by MakerDAO Governance, joining ETH, BAT and USDC for use on the platform. The post claims the community discussed the merits of adding bitcoin to Maker’s limited asset collection, before ultimately approving the process via an Executive Vote.