DeFi comes to Bitcoin Blockchain
Hi friends. I think most people known about the Decentralized Finance boom.
Its main motto is providing financial services to all people without any KYC, any Documentation, any waste of time.
We see a lot of different Defi platforms come with different concepts, they giving good growth and generating good hype in the crypto sector.
All most all Defi platforms run on the Ethereum network but a lot of people not showing interest to buy ETH with Their BTC. Because BTC is the king of crypto, no other coin not possible to replace its value. A lot of people do not show interest to sell their BTC for buying other alts.
That's why translate their BTC into WBTC for lending in Defi platforms for getting other earnings.
A lot of people, not a regular trader, just invest their savings in crypto, buy BTC, and hold in their wallets for the future. They don't have the interest to convert to other stable coins for lending in Defi platforms. That's why they simply concert those to WBTC.
This graph shows how much BTC is converted to WBTC for locking in Defi platforms. It's valued at nearly a 1.1Billions now. It shows BTC holders are not interested to buy other alts but need other earnings from their holding. That's why they go for swapping to Wrap BTC.
That's why now Crypto experts are working on bringing the same Defi services onto the Bitcoin blockchain. They working on creating smart contracts in the Bitcoin blockchain too.
Hope soon we see the Bitcoin Defi ecosystem.
What is Bitcoin Defi
This word gives another new hype in Defi platforms. If it comes soon, we see a lot of people show a lot of interest to lend their holdings in Bitcoin Defi, another Bitcoin Decentralized finance will start.
Then after we see smart contracts related to operating Decentralized Finance Apps on the Bitcoin network also. Before we see Decentralized Finance Apps on Ethereum, this will change to the Bitcoin network soon.
What are the advantages of Bitcoin DeFi
In this Bitcoin Decentralized Finance, we see a lot of additional advantages than
Ethereum. Those are
Bitcoin is the king of crypto, so no worry about market conditions. It's a value not dump, in future it's value must increase. So no worry about future prices.
It had the strongest networks for any crypto. If any DAPP works in the Bitcoin network it gives complete protection for the entire network.
Bitcoin network also open to all. It is the most secure PUBLIC network on the planet. Open to all, anyone can use it for their needs.
We don't any Liquidity issues. This platform having a large number of holders. They help to bring liquidity for any Dapps very easily.
Bitcoin already having its Brand visibility, so no need to spend additional money to share information with users. Almost all smartphone holders are well known about Bitcoin. This brings mas users to invest in this field, this brand value we cont expect from Ethereum.
Projects that are bringing Defi to Bitcoin
Already some platforms working hard to bring bitcoin into Defi in the Bitcoin network. Those are.
1.tBTC
It is also similar to WBTC,
tBTC is backed by 1:1 BTC. tBTC project developed by Summa, Cross-Chain Group, and Keep Network, it's providing a great deal for BTC holders to convert ERC -20 TBTC.
Here users can convert back when they need without any third-party influence.
2.WBTC
WBTC well-known term for all crypto holders who participate in Defi lending platforms.
WBTC delivers the power of bitcoin with the flexibility of an ERC20 Token.
It gives a good opportunity for BITCOIN holders also enter into Ethereum platforms like Dapps ,DEx's.
After arriving at Bitcoin into Ethereum, it helps to increase the volume of Dapps. It gives good growth in all Dapps.
This platform makes a very easy trade cross-chain between bitcoin and ethereum based tokens.
It reduces a lot of burden for traders. And also providing costly exchange services at low cost.
It is another great project from BTC holders. Here in lending our BTC, and keeping collateral, we get a loan in form of stable coins. So no need to convert to other ERC 20 token, directly we can invest here.
For these activities no need to verify your identity, all private keys in our hand, so our BTC is in our Control.
Conclusion: Don't Enter on seeing hype
Now crypto market on hype so don't be greedy, don't invest your funds without research about that platform.
First research then invest. In seeing hype don't invest is my humble request, if you invest in seeing hype there is a chance of big loss also. Be careful.
Some images i taken from source,some i edit according to needs.
Thank you for reading my post.
Hello @lavanyalakshman
Thank you for posting on Project Hoope Community. Good work you've done.
The truth is that I'm worried about the scalability in the BTC blockchain, if there are already problems with that in Ethereum, I can't imagine what would happen if the amount of transactions in the BTC blockchain increases too much. We know that it can take hours or days to complete a transaction, which is a great detail that I see. But I agree that the recognition and capitalization that BTC has on its own does not compare to any, and this already suggests a degree of liquidity in the market.
A note is necessary to place the sources of the images, regardless of whether they are screen captures. Citing the source is not optional.
#twopercent #colombia
Yes i agree with you. For transaction in bitcoin it take huge time this is big disadvantage ,.
I follow your guidelines,i edit my post and submit source of pictures.
Thank you very much for stopping my post and your valuable comment.
#affable #india #twopercent
Although it eliminates KYC, documentation, primarily it is more about absolute control of the asset and making an agreement between two parties trustless, governed by the code. Non-custodial financial service.
This figure has gone up more than 1.4 billion as of now and this is constantly growing.
https://etherscan.io/tokens/label/bitcoin-pegged
Now people don't want just store-in-value they want to ride this DeFi hype, earning interest, yield farming, etc.
I don't think the Bitcoin community is interested in that. They want to stay with store-in-value.
However with tokenized Bitcoin one can leverage the benefits of both store-in-value as well as smart contract-based ecosystem such as Tron, Etherum.
Thank you.
#twopercent #india #affable
Yes now bitcoin holders getting benefits on converting bitcoin into tokenized bitcoin for doing yield farming.
Thanks for stopping my post
hi @lavanyalakshman,
Cryptocurrency is generally a young industry, and DeFi is younger. Block adoption is still far from encryption, and standard practices continue to accumulate in related areas such as DeFi. What trade-offs will prove to be the most acceptable (or rather less unpalatable) for investors? Will there be a single protocol or solution in the market, or will several viable tools coexist peacefully? We'll see in the coming days, but whatever happens, we can make sure it's going to be interesting.
#twopercent #Germany #Europe
Yes i agree.
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