Bitcoin Accepted as Collateral Asset on the Ethereum Blockchain

By Shannon Wilson | May 4, 2020

MakerDao governance – a MKR token holders-focused decentralized community in charge of managing Maker Protocol – has reportedly added Wrapped Bitcoin to the list of acceptable collateral asset. 

Specifically revealed on May 3rd, a vote within the MakerDao governance has resulted in the appearance of Wrapped Bitcoin (wBTC) on the Ethereum blockchain, making it the first Bitcoin-backed ERC20 token at a 1:1 ratio. 

WBTC has reportedly become the fourth collateral asset to be accepted the MakerDAO DeFi ecosystem, joining the previous entrance of ETH, BAT, and USDT. The coin will reportedly have the power to open Maker Vaults for DAI issuance. 

“WBTC will help bring greater liquidity to the Ethereum and decentralized finance (DeFi) ecosystems, and to decentralized exchanges (DEXs).”

Bitcoin holders will reportedly now have the power to ]open a vault via BTC trading and conduct wBTC-enabled DAI issuance. 

The 5-step vault opening process can reportedly be finalized on the decentralized finance platform Oasis Borrow, including creating an account on Coinlist, finishing KYC, wrapping BTC to wBTC, transfer wBTC to a compatible wallet, and finally establish a wBTC vault to issue new DAI.

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