What is Wrapped Bitcoin (WBTC)?

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28 May 2022
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WBTC stands for Wrapped Bitcoin, and is simply an ERC-20 token that represents Bitcoin; one WBTC equals one BTC. BTC can be converted into WBTC and vice-versa. Being an ERC20 token makes the transfer of WBTC faster than normal Bitcoin, but the key advantage of WBTC is its integration into the world of Ethereum wallets, decentralized apps (dapps), and smart contracts. At time of publication, there are over 280,000 WBTC in circulation. 
Wrapped BTC launched on the Ethereum mainnet in January 2019. Wrapped Bitcoin was brought to the world as a collaborative project between major players in the DeFi ecosystem such as BitGo, Ren, Dharma, Kyber, Compound, MakerDAO, and Set Protocol in an effort to bring more liquidity into the Ethereum network by dipping into Bitcoin. The project is now controlled by a Decentralized Autonomous Organization (DAO) called the WBTC DAO.Many of the most popular DeFi dapps on Ethereum require the use of collateral.

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