Wrapped Bitcoin is a new innovative token which aims to bridge the gap between both the Ethereum and Bitcoin blockchains. Working as a joint venture between BitGo, Kyber Network and Republic Protocol Wrapped Bitcoin was launched on the 26th October 2018.
The new Bitcoin ERC20 token will bridge the worlds of the two leading crypto assets in the idea that it will basically allow Bitcoin to be traded against other assets on Ethereum-based decentralised exchanges, bringing liquidity from Bitcoin to Ethereum and allow for a whole new suite of Ethereum enabled Bitcoin applications.
As stated by CryptoGlobe:
“In a significant departure from other kinds of asset-backed tokens such as USD stablecoins – which have come under fire for their perceived lack of transparency – the project aims to ensure transparency by ‘minting’ and burning the tokens in a way which is publicly verifiable on both the Bitcoin and Ethereum blockchains.”
In a recent interview the CEO and co-founder of Kyber Network, Loi Luu discussed the project its origins and what its potential impact on the crypto economy is.
One of the first questions Luu was asked was if Kyber and Republic are sourcing all the initial Bitcoin liquidity for launch and if he has an estimate for the amount of Wrapped Bitcoin issued at launch:
“We will for sure provide initial liquidity, but we expect other merchants or partners will also do the same. I can’t speak for others, but Kyber side will provide at least 1 Million USD worth of Bitcoin.”
After being asked where the highest demand for Wrapped Bitcoin will be after the launch Loi Luu said:
“Decentralized exchanges and other financial protocols like Dharma, Compound finance and index funds. Would you like more exchanges and custodians to join? For example, Coinbase as they have a DEX product, bitcoin liquidity and a custody solution of sorts, would they be a partner or do you see them as a potential competitor?”
Last but not least, Luu was asked if he thinks this will increase the value proposition for Ethereum and Bitcoin:
“Absolutely, WBTC helps achieve the best of both worlds: bring the most popular cryptocurrency (in terms of market cap and trade volume) to Ethereum and allow it to be programmable with expressive smart contracts on Ethereum. “
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