$165 Million BTC Moved To ETH After UNI Token Launch: Report

$165 million Bitcoins were moved to Ethereum right after the Uniswap UNI token launch as the supply of the tokenized BTC is continuously growing. In today’s Bitcoin news, we are reading more about the WBTC supply.

Over 15,000 WBTC was minted Since September 17 which was prompted by the UNI token yield farming incentive on Uniswap. The comparative returns for Bitcoin-based pools got higher than Ethereum and Chainlink on DeFi platforms like yEarn Finance. Curve added a new HBTC pool right next to the existing BTC-based pool which is backed by RenBTC and wBTC and sBTC. WBTC or wrapped bitcoin added $15,000 tokens a day after the Uni token launch which brought the amount of BTC locked in DeFi to $1.2 billion. The high returns on Bitcoin-specific pools is another indicator of a mass movement.

Wrapped Bitcoin is a tokenized version of BTC issued on Ethereum which was launched a year ago. WBTC had a slow growth but now with the growth of DeFi’s yield farming, WBTC surpassed $800 million in locked value, meaning it added $500 million since August. Uniswap is currently the leading decentralized exchange. The WBTC-ETH pool on Uniswap became a major source of attraction as one of the main pools on Uniswap with the added UNI token incentive.

Right now, the WBTc-ETH pool is the biggest pool with total liquidity of $391 million. This marks a 900% increase since September while the relative volume of other WBTC pools on Uniswap paints a clear picture of the demand source. While the WBTC-ETH pool 24-hour volume is close to $40 million, it’s practically zero for the other WBTC pools. The new UNI-based pools will not be added for the next 30 days with the governance grace period which shows that the expansion of the pool will continue. The other pools which qualified for yield farming UNI include USDT-ETH, USDC-ETH, and DAI-ETH.

The $165 million BTC transferred to ETH shows that the bitcoin pools are gaining traction because of their high returns, causing an increase in the amount of minted wBTC, renBTC and sBTC. Tokenized Bitcoin is an ERC-20 token whose value is backed by BTC locked in smart contracts. Tokenized BTC is compatible with most DeFi platforms that are built on Ethereum.