Wrapped Bitcoin (WBTC) Growth Drives Maker DAI Supply to Near ATH

For those of you who have been watching Bitcoin's growing trend towards DeFi, you've surely seen the recent surge in wBTC that has spurred the development of new Dai.

For those who missed it, Maker recently added support for wBTC as security. This is the fourth support for assets outside of ETH, BAT and USDC that can be used to shape new Dai. Although many were skeptical that this would mean a lot, they did not see a rapid growth in new wBTCs in the past few weeks – the vast majority of them were broadcast immediately and locked up in Maker Vaults Borrow oasis.

Behind this rapid shift is a leading exchange and token issuer in the United States – CoinList. While this may come as a surprise to some, CoinList turns out to be this become fast The leading provider for large Bitcoin holders when it comes to providing Bitcoin as security to take advantage of the extensive DeFi landscape.

If you’re asked for a comment, Matthieu Jobbe Duval – Head of CoinList's financial products, responsible for WBTC operations, said:

“CoinList launched a BTC <> WBTC liquidity pool in February that our users can use to convert BTC to WBTC instantly (or vice versa). This charged WBTC liquidity almost overnight. Since the pool started, we have minted 3 out of 4 existing WBTC and are involved in 20% of the global WBTC ADV. "

For those who use KYC with CoinList, they get access to BTC and WBTC wallets, from which they can pack and unpack at the push of a button. CoinList also offers instant API conversions for institutions and OTC-like services for larger customers. For this purpose, users can quickly switch to and from WBTC without technical knowledge, which gives CoinList a nice advantage over other issuers.

Dai's way to recovery

As everyone knows, the maker has been watching since Black Thursday, Dai suffered a pretty big setback after breaking the ATH offering a few months earlier. With the recent surge in WBTC volume, Dai is now back on track to break its ATH despite a Dai savings rate of 0%.

This news is a promising surprise as many members of the maker community were skeptical that WBTC would drive the growth of leading credit protocols as strongly as we have seen in the past few days. In fact, the WBTC amount blocked in Maker has just exceeded USDC, making it the second largest pool of capital (behind ETH) that was blocked in the log at the time of writing.

Bitcoin on Ethereum

Now while it is still a way to go Before passing ETH blocked in Maker (~ 100m DAI vs. ~ 10m DAI), this is an incredibly bullish sign that Bitcoin is coming to Ethereum faster than we might have thought. Given that WBTC currently has a debt ceiling of $ 10 million, it is very likely that we will see a survey in the coming days to increase this amount. It is interesting that this success is great, but there is definitely room for improvement when it comes to bringing Bitcoin to Ethereum in a trustworthy way.

With solutions like tBTC and RenBTC on the horizon, there is no doubt that the number of ways Bitcoin can be represented on Ethereum will be widespread by the end of 2020. This goes a step further, as the vast majority of the newly minted wBTC are included in Maker is a great signal that the opportunities for DeFi lending reach the ears of Bitcoin whales.

Although it has been determined that a large part of the newly minted Dai will be loaned to Nexo, we can envision a future in which this Dai will flow more fluently into the lively DeFi landscape and further strengthen the ability to compose the most promising sector of Ethereum.

To keep up with all WBTC things, follow them on twitter!

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