WBTC is an ERC-20 token that is equivalent in value to one Bitcoin (BTC).
As the first ERC-20 token to be backed on a 1:1 basis with Bitcoin, WBTC was designed to help bring additional liquidity to the Ethereum network, at a time when the Ethereum ecosystem was small when compared to Bitcoin’s market cap.
As demand for Ethereum-based decentralized apps (DApps) increased, so too did the need for “wrapped tokens”, which enables interoperability to tokens that are traditionally locked to a single network. One popular use-case for WBTC revolves around borrowing and lending protocols, which allow WBTC holders to earn DeFi yields on their assets. To increase security and resiliency, the WBTC protocol is governed as a decentralized autonomous organization (DAO) whose members hold keys to a multi-signature contract. Learn more about Tokenized Bitcoin on Ethereum.
What is Wrapped Bitcoin (WBTC)?
WBTC is an ERC-20 token that is fully backed by Bitcoin (BTC), effectively making BTC compatible with the Ethereum network. To help ensure WBTC tokens are minted on a 1:1 basis with the number of BTC stored by custodians, the proof of reserve is held on-chain. Users can freely convert between WBTC and BTC at any time.
How to Trade Wrapped Bitcoin (WBTC) on Binance.US
Trading is available on the WBTC/BTC pair.*
*Note: This article was updated on March 16, 2022. Wrapped Bitcoin (WBTC) first began trading on Binance.US on March 16, 2022 at 5 p.m. PST / 8 p.m. EST. Deposits first opened 24-hours prior.
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