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Scallop Learn
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        • The Power Surge of Cross-Chain Interoperability in Blockchain's Future
        • Crypto Trading 101: Must know candlestick patterns for a successful trade
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        • Do not miss these common indicators of the crypto bull market
        • Decoding the Dynamics of Permissioned Blockchain Consensus Mechanisms
        • Summary
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        • Can Quantum Computers be a potential threat to Crypto?
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        • What Does Fintech Mean? Understanding the Intersection of Finance and Technology
          • Decoding Data Tokenisation: Its Vital Role and Relevance
        • Unravelling the Concept of the Time Value of Money: Its Implications and Applications
        • Unlocking the Potential of Real-World Assets
        • What is Byzantine fault tolerance?
        • Global Crypto Adoption and Its Potential Socio-Economic Impact
        • How ZK-Rollups are Supercharging Blockchain Transactions?
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      • Beware of these common frauds while using payment cards
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      • Summary
      • A Practical Guide: The Defi Walkthrough
      • Summary
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        • Scallop Chain: Built on Cosmos and Secured by Biometric Bridge
        • E-Money Tokens and Scallop
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    • Getting Started
      • Getting Started: Fiat Onboarding And Exchanges
      • Getting Started: The Defi Walkthrough
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      • Staking
        • Scallop Staking Guide
          • Useful Resources
          • 1. Setting Up Metamask Wallet
          • 2. Importing existing wallet
          • 3. Installing Binance Smart Chain
          • 4. Setting up a Kucoin Account
          • 5. Buying SCLP with a market order on Kucoin
          • 6. Transferring from Kucoin to Metamask
          • 7. Connecting Metamask to the SCLP Staking platform
        • LP Staking Guide
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    • News: Terra Collapse
    • Terra: Beyond Hope
    • News: Chapter 11 for Celsius
    • News: Nomad Bridge Hack
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    • Task Lists
    • Tokenising Real Estate
    • How to Donate Crypto to Ukraine
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On this page
  • In short
  • Advantages
  • How do I buy WBTC
  • Some suggested reading
  1. Guides
  2. Defi

Wrapped Bitcoin

WBTC is one of the top Market Cap coins around, what is it?

PreviousDefi projects: TerraNextSummary

Last updated 1 year ago

In short

  • WBTC is a version of BTC that exists as an Ethereum (ERC-20) token and can be swapped 1:1 for BTC

  • The token was created so that holders of BTC can interact with Ethereum's Decentralised Finance (Defi) ecosystem

Using a WBTC partner such as Airswap or DeversiFi, users can swap BTC for WBTC at a 1:1 ratio. This then allows them to interact with ERC-20 protocols. Bitcoin is still by far the most popular cryptocurrency, with over 45% of market dominance at time of writing. For all its strengths, the technology behind Bitcoin does not allow for like other blockchains like Ethereum. Without smart contracts, there is no Defi ecosystem, and so WBTC gives users the best of both worlds. They can hold BTC, whilst also making the most out of their capital by putting their WBTC to work in the ERC-20 ecosystem.

Advantages

  • Allows BTC holders to benefit from ERC-20 Defi protcols

  • Allows Ethereum based Defi apps to benefit from the liquidity provided by BTC holders

  • WBTC undergoes regular audits and publishes all on-chain transactions and verifications for the Bitcoin and Ethereum networks

How do I buy WBTC

You can trade it on ERC20 compatible decentralised exchanges () such as Kyber or Uniswap. If you want to swap BTC for WBTC, you can do so at a WBTC partner, which include Coinlist, Poloniex and Deversifi

What next? You've bought your WBTC, what can you do with it? Well WBTC can be used in DeFi activities such as lending, borrowing, token-swapping, yield farming and . Compatible platforms include , Balancer, , Kyber Network, MakerDAO and Uniswap.

Some suggested reading

Borrowing and Lending: Compound
smart contracts
DEXs
liquidity pools
Aave
Compound
WBTC Wrapped Bitcoin an ERC20 token backed 1:1 with BitcoinWrapped Bitcoin
WBTC merchants and partners can be found here
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