Alameda Research company claims that about 70% of the wrapped BTC was minted in August while the decentralized finance craze continues and the growth in supply on tokenized BTC on Ethereum is gaining pace so let’s find out more in the latest Bitcoin news today.
Alameda Research says that the accumulation of 14,654 WBTC last month came after the quantitative trading firm lobbied for an increase back in July in the amount of collateral placed to earn interest on the Compound platform starting from 0% to 40% as the firm hasn’t minted WBTC prior to August. The proposal was introduced and approved later after a previous proposal from the company, to increase the collateral to 65% was once denied.
— Binance (@binance) August 31, 2020
At the time, the company said WBTC will diversify the assets that are used for collateral on the platform and will increase operability between MakerDAO and Compound which also supports WBTC collateral. Alameda co-founder Sam Bankman Fried also called wrapped Bitcoin “easiest bridge” between Ethereum and bitcoin decentralized finance ecosystem. The poll passed on Thursday in favor of increasing the DAI number, MakerDAO’s stablecoin which can be minted from WBTC from 80 to 120 million.
About 14% of the dai is then derived from WBTC and the motion is now set for an executive vote. Alameda has a huge reach in the market according to product manager at Bitgo Kiarash Mosayeri. The company helped to spearhead Wrapped bitcoin and said:
“It’s great to see another robust onramp help make Bitcoin more available for use on trustless protocols” when speaking about the increase in demand to use Bitcoin in the ETH DeFi ecosystem. The sister company of Alameda Research, FTX, supports conversion between BTC and WBTC on the derivatives exchange. Binance who is also a huge investor in FTX, announced support for WBTC back on Monday. Beyond WBTC, the aggregate supply of the tokenized Bitcoins more than doubled in August with a total supply of about 55,000 tokenized BTC worth more than $333 million.
The supply of renBTC which is the second biggest tokenized bitcoin project, exploded from under 2000 renBTC in July, to more than 13,500 renBTC in August. Wrapped Bitcoin is still the dominating tokenized bitcoin form, representing 70% of the total supply of Bitcoins on Ethereum.
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